From Our Print Edition

Sure you want to save money and be more efficient. But taking the wrong steps can cost you serious money.

Everyone from the manufacturer to the retailer wants to cut costs whenever they can, but I see costly mistakes being made daily. In walking the aisles of many retailers, I have noticed that stocking the refrigerated and frozen shelves with cardboard cases seems to be gaining popularity.

BLOCKING BOXES

This is a problem for several reasons. First, these boxes block the flow of air throughout the case, causing the refrigeration units to run longer and work harder. That means they use more energy — and cost you more money. The first pushback will be that they save time and labor. Perhaps that’s true, but they also put the cold chain in jeopardy and can affect product quality.

Just go feel how wet the carboard is, and how the product in many cases is not at the temperature you really want (or think it is). Perhaps a simple solution would be to have the product in clear, thin plastic trays that are overwrapped to solve the labor and cold chain issues.

‘In walking the aisles of many retailers, I have noticed that stocking the refrigerated and frozen shelves with cardboard cases seems to be gaining popularity.
This is a problem for several reasons.’

Well, here is another problem that needs fixing: Having product put in colored cardboard boxes. Or worse, having a specially printed box for every SKU.

Manufacturers and buyers really need to look at the cost of colored and preprinted boxes vs. plain brown kraft boxes. Ask yourself what percentage of the product sold is still in a box when it’s being purchased? The answer, very little. Could a colored preprinted box sell more product? Maybe, but I think a good-looking product that’s priced right would sell even more.

Why do we need every SKU to have its own box? If you do the math and talk to your box supplier, you’ll find that having one brown kraft box that can be inkjet with the product upc, pack, size, and item description will save you and the manufacturer a ton of money.

How? First, your suppliers can buy in larger quantities, which is especially important when the price of cardboard is going up. They can save space by having fewer box sizes to store and deal with. If an item gets discontinued, it’s not a big deal since no box inventory is left over. Think about the number of cases your company buys in a year and how few ever go on display. For those that do, how much of the box is even seen?

CONSIDER TEAR-STRIPS

If you want a better way to spend your money, look into cases that are your best sellers and have tear-strips on them. These cases stop those nasty razor cuts on product. What’s more, they help when you build displays since you’ll have an instant display-ready case. They also allow a retailer who wants to tray pack their shelves and thus help to keep the modular integrity intact. But once again, be sure they don’t diminish the airflow in your cases.

Let’s switch gears for a minute and talk about packaging of individual products. Retailers can’t control what national brands put on their packages, but they sure can on their own. Here are a few suggestions for private label. First, make sure the product description is in the top third of the package.

Boxes can block the flow of air throughout the case, causing the refrigeration units to run longer and work harder.

Why? Well, I’ve seen too many items where tray/cases block the product description if it is near the bottom of the package. And make individual flavors stand out by using different colors on different flavors of an item. Using just the flavor name written on the package isn’t the most effective way to tell shoppers and stockers what’s in the box.

Next, on packaging with light colors such as yellow, light blue, etc., don’t use white lettering on any part of it. Your customer just can’t read it. And be aware of the size of the printing you’re using, especially in the ingredients and nutritional panels. More folks read this for health reasons as they get older. Size, color and font can make their lives a lot easier.

Finally, think of your package as the billboard to its sales. Keep it clean and appealing. Make sure to call out important attributes such as low sodium, fat-free, low-carb, gluten-free, no saturated fats, low in sugar or the number of grams of sugar.

‘I was a fan of using color banners to call out these and other key selling attributes of an item. For example, sugar-free was always on a green banner, and gluten- free was on a purple one.’

These are important to many of your customers. For them to have to stop and pick up the package and look for this information in small print is really doing them a disservice. I was a fan of using color banners to call out these and other key selling attributes of an item. For example, sugar-free was always on a green banner, and gluten-free was on a purple one. Having simple, clean callouts that are standard throughout your store brands gives just another reason for the customer to shop them. It saves them time and shows that you care about them and their health.

TELL (AND SELL) YOUR STORY

Clean, simple packaging sells itself. Remember you’re selling what’s inside the product as much as you are selling the product itself. Every private label SKU has a story to sell.  More important, each reflects on the brand and the retailer. Quality is not just something you put in the package; it has to show on the outside, too. Just sayin’. n

Bob Anderson is the retired vp/general merchandise manager at Walmart, where he worked for 17 years.
He can be reached at [email protected].