You’ve Likely Heard the Old Adage: Location, Location, Location
It first appeared in a real estate classified ad in 1926 and highlighted the value of the property’s location. While perhaps cliché, the value of location can be applied to many businesses with brick and mortar infrastructure.
There was a time when a customer needed a product that they purchased it from their neighborhood store. Today, a customer can purchase a product in Japan from their living room in Cleveland. Technology has opened up the global marketplace benefiting consumers and manufacturers alike. However, as a result, the supply chain has become more complicated, with retailers and manufacturers needing to cover a larger geographical area in order to grow their businesses.
Your liquid product production is no exception to this rule. Location is no less critical when trying to reach your new customers, wherever they may be.
Growing Your Business to New Markets
Taking your product nationally or importing it to the US can be an exciting time. However, the decision on how to reach customers across a larger geographic footprint is a big one that shouldn’t be taken lightly.
Frequently, coastal US manufacturers wanting to sell on the opposite coast, for example, can ship products across the country to distribution centers and other buyers. This strategy’s benefit is that manufacturing remains centralized, but the downside can be costly. Liquids are heavy, and shipping costs can be high — taking a bite out of profits. The costs for companies importing liquid products into the US can be even higher.
Alternatively, some companies may build manufacturing facilities closer to where they are selling. This requires a big investment in infrastructure and real estate, so current and future sales must compensate for these costs. Companies must consider state regulations as well. For example, California has many regulations touching all aspects of the process — manufacturing, emissions, chemicals, packaging, and labeling — and those can be costly to navigate.
Rising transportation costs and record inflation provide increased risk to long-distance shipping strategies.
The Benefits of an Outsourced Production Strategy
For companies that want to quickly and cost effectively access new markets, an experienced contract packager can offer great value. With a contract packager, their facilities are already set up in production, so there is much less time bringing a product to market than having to establish a production facility. Additionally, there is no large front-end capital cost to build a facility or production line.
Location, Location, Location (There it is again!) — The whole reason you are looking for a partner is to sell nationally or import into the US, so find a partner that is close to the distribution centers of large retailers in or near your new markets. This will save you shipping costs and improve your speed to market. Quality, lead times, and costs are often the top concerns when companies look for a contract partner. However, location near your new markets can directly reduce two out of three of those concerns, lead times and costs. Your customers get their products more quickly and cheaply.
Capabilities — In addition to location, diverse capabilities are essential. This is particularly true if you have more than one bottle size. Working with one contract blender to package all your liquid products will save you time (and the hassle of managing several) and may reduce costs because of the increased volume.
Experience — Finally, ensure your partner has experience. If your partner lacks experience, issues such as packaging/content compatibility, blend results, and fill levels can go unnoticed, impacting quality and resulting in unhappy customers. If labeling and packaging aren’t your primary focus, they should be your partner’s. Additionally, if you have an EPA-regulated product, your partner should have EPA registration and understand labeling requirements. The bottom line is that an experienced partner will have your back and treat your product as if it were its own.
Put Your Product in Crystal Packaging’s Hands
Crystal Packaging has the experience, capacity, and capabilities to blend, fill, and package your water and petroleum-based liquid products. Our location is prime for companies that service the west coast and across the country. Located in the heart of Colorado, we are in close proximity to many major big-box store distribution centers. As Crystal is just a few miles from I-25 and I-70 interstate highways, trucks are able to reach most of the contiguous US within three days.