HOW MUCH SHOULD I BUDGET FOR MY BRAND PACKAGING?
With 2021 already off to an abnormal start, our focus today is on a question that’s stayed consistent with our customer: “What should I spend on my brand packaging?” This edition of THE UNPACK shines a spotlight on what ByQuest offers: Unique packaging and brand storytelling at any budget level and retail price point. When we have early discussions around a brand’s packaging, ByQuest can find the right solution within your budget to help the brand stand out. The earlier we start work with you and your team, the more robust options we can present at different price points to help you answer these questions, “How much should I spend on packaging?” and “How do I know what packaging is right for my brand?”
As a rule of thumb for how much to allocate on packaging cost, ByQuest provides general guidance to dedicate 10% of your retail price to the packaging budget. Your package is the first impression you make with the consumer and deserves this investment to make sure the product has a lasting impact. Naturally, a higher retail price means you have more budget to work with but conversely, the higher the retail price, the smaller the number of potential buyers. A lower retail price makes your product more affordable and means you can appeal to a wider audience, but you also won’t have as much margin to spend on adorning your package. Working with our team early in the design process allows you to explore different branding options that align with the retail value on the shelf.
We call this Brand Power Flex Pricing, and below is an inspirational whiskey brand, Silver Spur, that is presented at three different price points to show what this looks like in practice. From left to right our team has created “Full”, “Nice”, and “Simple” options to show how we can capture a brand’s image at different value targets.
The “Full” option has all the bells and whistles and comes in at just over $5.00 per bottle at a retail price just north of $50. This includes a heavy bottom glass bottle, natural rope necker and metal tin label in a leather finish for an eye-catching effect. In the middle, the “Nice” option makes sense for a retail price point between $30 and $50, with a budget target of between $3.00 to $5.00. This still delivers a very similar feel without spending the “Full” budget option. The “Simple” option comes in under $3.00 for packaging costs yet still presents the Silver Spur brand in a unique and compelling way.
Below is another example for an inspirational Sake brand, Katakana, which falls into our wine pricing:
For this brand, the “Full” option is just over $3.00 per bottle with a crackle décor spray, screen printing plus paper label (mixed media), and an acrylic Japanese art “signature” block with a hand-applied tamper-proof ribbon at the top. There’s a lot going on here to create a super-premium brand image for a product that will retail for over $30.00 per 750ml bottle. The “Nice” option falls between $2.00 and $3.00 where the degree of premium elements are reduced. Finally, the “Simple” option comes in under $2.00 per bottle for packaging expenses. Regardless of budget guidance, the Katakana brand’s look remains strong and bold.
Now back to the main question: “How do I know what’s right for my brand?”
This is where working with the ByQuest team pays off tremendously using the Brand Power Flex Pricing guidance. We very often start with the question, “What’s your retail price?” and working with you, our team is able to put your brand in a position to succeed by designing appropriately to your needs and the value of the brand. You can reach out to us for a virtual presentation with one of our Brand Realization Consultants on what Flex Pricing would look like for your brand.
The power of a brand can be expressed at a number of price points, but it’s important the packaging be designed to the value of the brand being created. Having someone there to guide you will make this process as smooth as possible and increase the chance of you building a strong brand that resonates with consumers.
We hope this was helpful. Let us know what you think. Share your thoughts with us and as always, keep unpacking.
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