This is shipping things, and today we’re going to talk about one of the most common questions, I get about packaging. How much should it cost when making your packaging budget. There are two main factors to keep in consideration. The first and most obvious one is cost how much should you be paying for your packaging. The second one is time things can save you money but maybe take you extra time in fulfillment and that’s going to cost more in the long run. Let’s kick things off with cost in 2017. I hid the shipping big time with my second Kickstarter campaign or we end up having to ship out over two thousand rewards, to be honest. I had actually no idea, how much of my money just set aside for packaging? Let me answer your burning question. The correct answer is you should set aside for 1.3% of your total funds or total revenue for your packaging budget.
There are a lot of packaging options within that 1.3%. Well, let’s break it down into tears, and tear one is all about reliability. What does that mean it means that bare minimum you want. Your package to have the proper padding support and security. That it needs to get safely from point A to point B.
The next up tier two branding. When your package arrives is the first time your customer will be physically interacting with your products and with your brand. You can actually get your logo and get some nice kind of branding and energy on the box itself. But keep in mind that you don’t need to plaster your logo everywhere. You can just put on a sticker or some tape. If you want to get fancy you could put it on the books itself as you can see there’s some versatility. How you spend that 1 to 3% on the packaging.Let’s get more specific shall we let’s say that we’re shipping out a custom beautiful dress. That cost $250 to your customer. You may want to spend closer to 3 percent which is seven dollars and 50 cents on all your packaging stuff. How do you get there well you might invest in a custom printed box, custom tissue paper a beautiful foil printed card or stickers or other branded goodies for them. Now on the flip side let’s say we’re shipping $20 t-shirts nothing wrong with that. But in that case, you may want to spend closer to 1% and get yourself a 20 cent Polly Miller look. When you’re budgeting it’s totally understandable to get caught up on unit costs, and just cost compare and say this box cost three cents less than, this one etc keep in mind folks that most of your savings though and your neck kind of overall efficiency is going to come from deeply considering. Other aspects of your packaging like are that even the right type of packaging. How much does it cost a ship etc?
Your packaging partner can help you with that so make sure to pick a good one. We’ve covered costs but let’s talk about time. The fact of the matter is the not all packages are created equal some of them are much faster in fulfillment. Now packaging options that take more time aren’t necessarily wrong or bad. But here’s what I have to tell you. You need to budget for time is money people for real this time, because you’re gonna need labor to meticulously wrap each package. If you go with this option when you use it right your packaging budget can do a lot for your brand, not only does it ensure their packages make it from point A to point B safely. We can also make your brand look incredible to your customers so people take that 1 to 3 percent and do something incredible with it.