There are more than 7 billion people in this world and each of them, on an average consumes $114 worth of packaging every year. The packaging industry is undoubtedly a very profitable business and has a lot of potential for growth. However, this potential is not fully utilized because of unequally distributed market share. The larger suppliers manufacturing Flexible Packaging Machine are the real game players and the smaller suppliers usually operate in the shadows of these large competitors.
These bigger companies and suppliers hold large resources at their disposal, which grants them the ability to promote their product more aggressively, give more access to the various sectors, and also the ability to make profits without being affected by the undercut on products.
It’s a competitive and tough landscape for low-scale competitors, nonetheless they can still make their way through these big players. Here are some simple suggestions that might help small-scale suppliers improve client and customer relationship while growing the business steadily.
• Get the pricing right. The wholesale and supplier market is very highly price sensitive. Even a minute difference in price can convert a very loyal customer into your rival’s latest acquisition. Larger companies usually win over customers by providing the same product for lower prices, as they have the infrastructure to do so. Reducing the price slightly here and there does not harm their overall profits. However, a smaller supplier’s business sustains on profits generated by such small differences. Therefore, it is very important to constantly keep an eye on the price your competitors are charging. Also retaining the customer is also very important whenever a dip in purchases is experienced.
• Be different (competitively). Honestly, there is not much scope for any kind of differentiation among products from various suppliers. The packaging provided by various suppliers and same as other. The packaging industry is made up of various suppliers providing similar packaging products to a specific group of customers, price being the only major differentiator. This further explains, why minor differences in price is so important in the packaging industry.
However, price is not the only differentiator in the packaging industry. Another important differentiator which has come to be quite popular and in demand recently is the environmental impact that has be made by the product itself and the process of its manufacturing. Creating products such as bubble wrap that are recyclable and manufacturing Stick Pack Packaging with recycled materials can be a step towards being socially and environmentally conscious.
• Encouraging brand loyalty. Price should not be the only factor your product is selling. If you can make a price undercut today, your competitor can as well some other day. You need to have more and give more that price differentiation. One needs to build a strong relationship with the customers. You need to encourage brand loyalty. This can be easily done by keep giving something extra for the price they have paid, like value added services, and cash discounts so that they keep coming back to you for business.
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