Successfully managing cash flow is a critical business function for every company, no matter what size. The rule of thumb is to only order what you need, especially if you are launching a new, unproven product. This is where short-run packaging can be extremely useful and will help with costs, decision-making and future planning.
The great thing about short-run packaging is that you produce only what you need – when you need it. Granted, your per-unit price may be a bit higher, but the risk of over-inventory supply is less and you can manage your cash more efficiently.
With short-run packaging, you can now order small quantities of high-quality products at very affordable prices.
Here are a couple of the benefits of short-run packaging:
1. Start small, save on start-up costs, do quick changes
It's important to talk to your customer and fully understand their brief before ordering brand packaging. Will you need to change the design at a later stage for some geographic or demographic need? Will you have to alter the messaging down the line?
2. Grow your product line steadily
Try to produce your packaging at the same time you manufacture your product. Even if you think you are going to sell large amounts of the product, having too much product and packaging stored can be a risk and a drain on space. If you are able to keep an even order pattern as you grow your product, you will have a healthier balance of product and cash flow management.
3. Avoids pressure from customers
Whatever you do, don't be manipulated into buying more packaging than you need – and don’t be afraid to distance yourself from any pressure your customers may be putting on you. If you don’t have the storage space for large amounts of unused packaging, you are just creating a new set of problems. One major drawback of ordering items in bulk is the risk of theft and damage such as fires, floods, and other natural disasters. Experts advise that you need to store only items that you expect to use in the near future.
4. Budgeting benefits
There was a time when it was almost impossible to order less than 500 packaging units from a supplier because most manufacturers set their minimum orders at 500 units. This often became a huge challenge for consumers on a tight budget where, for example, you could only meet the cost of 300 packaging units for your 300 products. With short-run packaging, you order only what you need.
5. Launching trial products
Once the design process is complete with a short-run packaging project, the difficult part is over. Reordering your packaging is quick and simple and the turnaround time will be less. If you discover you didn’t order enough, restocking your inventory won’t take as long as when you were just beginning the packaging design process.
Short-run packaging is an important business strategy to understand and use. While there are times when market demands require large quantities, following the steps above will help you make a more informed decision when short run becomes the more viable option.
