Who doesn’t revel in the joy of getting more for less? Whether it’s a ‘buy 2 get 1 free’ offer or a chance to snag four items at a lower price, the allure of multipacks is undeniable. In the world of packaging, this strategy isn’t just a consumer perk; it’s a golden ticket for companies aiming to boost sales and maximize profits.
Let’s find out from Packman Packaging, the leading corrugated boxes manufacturer in India the role of multipacks in the packaging industry.
Before we delve deep, it is important to understand the difference between multipacks and bundles. A multipack comprises identical products sold together as a single unit, providing consumers with multiples of the same item. For instance, a multipack of three identical shampoo bottles.
On the other hand, a bundle consists of distinct items with unique product IDs sold together. These items are complementary rather than identical. For example, a bundle might include a shampoo, conditioner, and a hairbrush, each with its individual product ID.
How does using multipacks boost your sales and profits?
Mr. Gaurav Jalan, Founder of Packman Packaging shares insights on the ways using multipacks increases your sales and profits.
1. The Cost Advantage
Multipacks offer an enticing economic proposition for consumers as it allows you to pay less per unit. Imagine the delight of walking into a store and finding an offer for four items at the price of two. It’s an immediate incentive for customers to buy more, contributing to increased sales volume. For a packaging company, this translates into a higher demand for their products as brands seek cost-effective and attractive packaging solutions.
This strategy boosts total revenue by increasing the amount spent on each transaction. You can reduce shipping costs per item and increase your gross profit by sending multiple items in the same shipment. Packaging multiple items together lowers per-unit packaging expenses, leading to improved profit margins compared to individual item packaging costs.
2. Helps you To Fulfill your Monthly Needs
Multipacks are indeed a convenient option for individuals looking to stock up on products for their monthly needs, and their popularity has been particularly evident during the pandemic. The advantages of multipacks include cost savings, reduced frequency of shopping trips, and the convenience of having a ready supply of essential items at home.
During the pandemic, many people sought to minimize their exposure to crowded places like grocery stores. Multipacks became a practical solution for consumers to purchase larger quantities of goods, ensuring they had an ample supply while minimizing the need for frequent trips outside the home.
3. Enhanced Shopping Experience
Convenience is a key factor influencing purchasing decisions. Multipack simplifies the shopping experience for consumers, offering them the convenience of purchasing multiple items in one go instead of selecting multiple individual items one by one. This not only saves time but also reduces the perceived effort of shopping, making it more likely for customers to choose multipacks over individual items. Packaging companies that prioritize ease of use and functionality in their designs gain a competitive edge in the market.
4. Efficient Management of Dead/ Excess Inventory
Can excess inventory become a profit opportunity? Transform your slow-moving stock into value with multipacks. This strategy not only facilitates the movement of overstocked goods but also enables the creation of cross-brand combos. Say goodbye to stagnant inventory and offset losses by pairing sluggish items with faster-selling counterparts at a reasonable price. This can reduce storage costs and make room for new, faster-moving products thereby increasing sales.
5. Brand Loyalty
Nowadays, organizations are increasingly embracing the Multipack approach as a dual-purpose strategy. It not only boosts sales by encouraging the purchase of multiple units but also serves as a potent instrument for fostering brand loyalty. When customers link a brand to attractive offers and economical options, they tend to develop loyalty to the company.
The favourable perception of receiving enhanced value for their money establishes a connection, transforming occasional purchasers into committed, long-term patrons. In the fiercely competitive market environment, cultivating customer loyalty emerges as a crucial asset directly influencing enduring profitability.
Multipacks offer a compelling economic advantage, catering to consumer needs for cost savings, convenience, and enhanced shopping experiences. For businesses, it’s a strategic approach to boost sales, efficiently manage inventory, and foster brand loyalty. Embracing multipacks proves to be a win-win solution for both consumers and packaging companies in today’s competitive market landscape.