Hi all, Hope you're all good?
My inexperience with co packers has me stumped, can anyone tell me where I'm going wrong??
I've been working on developing our business model to escape the trap of TIME. We pack food products in our own brand and sell to wholesalers. The business is running us and it's only a matter of TIME before its unsustainable...
So, I wanted to look at getting a co packer to pack the products for us in our brand. Then we can sell the products (at a similar cost). Our margin would be lower but initially this could supplement existing trade until it grows big enough to stand alone. At that point we could reduce factory space etc which would lower overheads.
I thought it was a great plan until I started contacting co packers. I've spoken with quite a few now and the quotes are coming back consistently high. So high, the packing cost is 2x that of the raw materials. Not commercially viable. In any way shape or form.
I'm stumped.
I look around at other products that are copacked and are still sold competitively and I just can't understand it. Our product is a commodity. Our packaging is standard. Our volumes are fair (not massive, not tiny). I've seen people on Dragons Den (UK) with much more elaborate packaging & expensive product and their price is cheaper than what our commodity product would be in standard packaging.
Please can anyone tell me if I'm missing something through lack of experience?
Thank you so much in advance for ANY advise you may have to share
My inexperience with co packers has me stumped, can anyone tell me where I'm going wrong??
I've been working on developing our business model to escape the trap of TIME. We pack food products in our own brand and sell to wholesalers. The business is running us and it's only a matter of TIME before its unsustainable...
So, I wanted to look at getting a co packer to pack the products for us in our brand. Then we can sell the products (at a similar cost). Our margin would be lower but initially this could supplement existing trade until it grows big enough to stand alone. At that point we could reduce factory space etc which would lower overheads.
I thought it was a great plan until I started contacting co packers. I've spoken with quite a few now and the quotes are coming back consistently high. So high, the packing cost is 2x that of the raw materials. Not commercially viable. In any way shape or form.
I'm stumped.
I look around at other products that are copacked and are still sold competitively and I just can't understand it. Our product is a commodity. Our packaging is standard. Our volumes are fair (not massive, not tiny). I've seen people on Dragons Den (UK) with much more elaborate packaging & expensive product and their price is cheaper than what our commodity product would be in standard packaging.
Please can anyone tell me if I'm missing something through lack of experience?
Thank you so much in advance for ANY advise you may have to share
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