When you first started your business, you had big dreams for its future and you were ready to reach them. The bigger the better.
Then reality hit and as your business grew, you realized scaling isn’t as simple as you expected. If you don’t manage your growth well, your expenses go through the roof and your profits take a tumble.
One resources that can help you scale your business in an affordable way is a co-packer. What is a co-packer and how can they help? Let’s take a closer look.
What is a Co-Packer?
A co-packer is a business you contract with to package your products. The co-packer receives your completed products from the manufacturer and packages them for sale.
If you manufacture your own products, you can still use a co-packer. It’s a simple matter of how many parts of the process you want to outsource.
Benefits of Hiring a Co-Packer
A reliable co-packer can help you with your workload as well as your bottom line. There are several ways they can make your life easier.
More Affordable Labor
Hiring an in-house packaging staff is a gamble. The hiring process takes time and effort. When you have your staff, you’re constantly wondering if you have enough business to justify their compensation.
A co-packer is a more affordable way to add to your workforce indirectly. You play an established amount rather than paying a staff member’s full benefits. Better yet, you save yourself the time of finding and hiring qualified personnel.
Packaging doesn’t just require warm bodies. It takes equipment, materials, and facilities that allow the staff members to do their jobs. All that costs money.
A co-packer already has these facilities and pieces of equipment geared up and ready to go. All they need is your instructions and materials.
Because of your co-packer’s availability, you can also send them as much or as little inventory as you sell. Your business’s production scales in real-time. The trick is knowing how to find a co packer that offers you this flexibility.
Your product’s packaging will impact your consumers and their buying behavior. If the packaging is shoddy, they aren’t likely to take the leap and buy it.
A co-packer specializes in professional packaging so they can deliver clean, consistent results. This can make a world of difference in your sales.
Effective packaging is even more important with certain types of products. For instance, foods and beverages might require a protective seal for freshness. Health-related products need to be handled and packaged in a sterile way.
Building Your Business With a Co-Packer
Understanding the answer to “What is a co-packer?” is only the beginning. To give your business an edge while making your life easier, you need to find an experienced co-packer you can trust. Look for a co-packer that has experience handling similar products to yours too.
If you want more tips for building your business, check out the other articles on our blog.