Avatar Packaging Delivers
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The fall is a time when Executive roundtables start reflecting on the past year's achievements and begin ramping up their strategies for the upcoming year's objectives. The main goal of every business, in every year is to increase revenue by raising prices and/or lowering costs. However, raising prices on any product in the 21st century has proven elusive; and so, most action plans end up with two main objectives: reduce staffing levels and squeeze the suppliers for price concessions.
This corporate mentality of squeezing the packaging supplier surfaced in a recent article entitled, "Time to Shape Up, Box Makers", in the Official Board Markets magazine, dated November 13, 2010, by Mark Arzoumanian. Mark reported that at the RISI's 14th International Containerboard Conference that end users who spend lots of money on corrugated boxes want packaging options that go beyond the standard brown box to cut costs; and the elimination of recurring quality issues that increase their costs.
"Sales staff need to be proactive with accounts all year long and not wait for the Buyer to question whether they should get a volume discount or if a redesign would reduce their packaging costs," according to Avatar Packaging's, General Manager, Ken Rigg. "Custom box manufacturers have many more resources to be creative with packaging solutions than the catalog or warehouse box guys that only have price to negotiate", he continued.
Some box distributors that have set prices artificially low to gain market share may have a difficult time when the Buyer comes a calling in December. Especially, if the Buyer has already received price concessions for poor quality boxes throughout the year. This is why it is so important for businesses to price their product or service on a value-based pricing model for quality products rather than a cost-based pricing method that credits bad boxes. Because when low-priced suppliers have to adjust their prices to true market costs to stay in business........they may rise to a level that sabotages all gains that a company's fall strategies were expected to deliver.
Avatar Packaging, Inc. is ISO 9001-2008 certified and backs their products with the quality control statement of "Quality First Time - Every Time". Do not hesitate to contact Avatar Packaging, Inc. with any of your packaging needs by calling 813-888-9141 or via email at sales@avatarpackaging.com.
