Does it Make Sense for You to Pay for Custom Branding on Your Products?

Does it Make Sense for You to Pay for Custom Branding on Your Products?

3 Questions To Ask Before You Custom Brand Your Products

Your business is growing and you’re excited to take your brand to the next level by paying for custom branding on consumables that you use a lot of like, like cake boxes, cups, or plastic shopping bags. You’re just not sure if it makes sense financially or it’s even possible based on the quantity you order.

Here’s how to figure it out:  

Review these three numbers:

  1.     What is your monthly consumption on a per SKU basis?
  2.     What are your current costs? (break it down to a per piece basis)
  3.     How much space do you have for storage?

Let me explain each in detail.

1. Monthly Consumption

Once you have your numbers on a per SKU basis, you will know if you’re ready to start the branding process, and here’s why. Manufacturers have Minimum Order Quantities (MOQs) for branding that you have to fulfil in order to make it worthwhile for them.

MOQ’s can range from 1,000 pcs – 150,000 pcs depending on what you are branding.

Here’s a quick breakdown on typical products and their MOQs:

ItemMOQ
Cake Boxes5,000
Clear Cups24,000 – 50,000
Cooler Bags1,000
Eco Bags500 – 1,000
Kraft Handled Bags25,000 – 50,000
Napkins25,000 – 50,000
Paper Cups10,000 – 100,000
Plastic T-Shirt Shopping Bags50,000 – 150,000
Sleeves5,000
Wax Papers50,000 – 100,000

Note that variances in MOQs are a result of various Manufacturers’ requirements.

If you wanted to print T-Shirt Bags and you were using bags that came packed 1000/CS, at the very least, with an MOQ of 50,000 pcs, you would need to consume almost 1 case per week, which would last you 1 entire year. (unless of course, you have large storage, then you consume as you please)  If you have multiple locations, and your numbers are well above 1 case per week, you can check off this requirement.

Think about what makes sense for your business. You can also enquire about the MOQ for a certain product by emailing us at info@enkay.ca

2. Current Cost of Unbranded Item vs. Cost of Branded Item

First, you want to find out the current cost of an item without branding and then compare it to the cost of an item with branding to determine the difference and whether it makes financial sense to upgrade to the branding.

To get the per unit cost, we divide the case cost by the number of pcs in the case.

i.e. $29.90 for T-Shirt Shopping Bags @ 1000pcs/Case
$29.90/1000 = $0.029/per bag
Call it $0.03.

Next, determine what the cost for branding is.

In this case the same bag now costs $39.90 branded @ 1000pcs/Case

$39.90/1000= $0.039
Call it $0.04.

Now you know it’s only a penny more to get your brand on the bags.

The reality is online or offline marketing typically has a much higher CPI (cost per impression, i.e. the cost for each person to see your brand).

Custom branding is often one of the least expensive and effective ways to spread your brand.

3. Storage Space

As noted above, when you’re custom branding products, you’re running large volumes so you may have to consider paying for storage if you don’t already have access to enough space.

This could include:

  1. Paying for a storage unit
    OR
  2. Using your distributors’ warehouse for storage (negotiate with your distributor for storage rates)

Once you’ve reviewed these three key factors, you can confidently determine if branding is right for your business.

Have specific questions? Feel free to email us.

Is Your Restaurant Using a Delivery Service Like UberEats or SkipTheDishes?

Is Your Restaurant Using a Delivery Service Like UberEats or SkipTheDishes?

If you are, there’s an additional cost to these services that you might not have thought of…

Many owners of restaurants have seen significant increases in sales after signing up with a delivery service such as UberEats or SkipTheDishes. Some restaurant owners have up to 4 tablets sitting next to their POS taking in orders!

Although they charge a hefty percentage, they’re giving the opportunity to expose your food to a larger audience. Great!

However, there’s one additional ‘cost’ that you might not have thought when using these services.

The food delivery companies often provide you with free bags (and sometimes other food packaging) with their name and logo on it.

Don’t get me wrong, getting free bags and containers is great. Heck, getting anything free these days is huge. We feel like a million bucks if we win a cup of coffee from the roll up the rim campaigns!

The problem is that these free items are costing you thousands of valuable branding opportunities. Something you could be doing for less than $1.  

Have you thought about using your own branded bags and containers? It’s less expensive than you might think.

What’s the Price?

An average delivery order might consist of 2-4 containers and 1-2 bags. It’s likely even less than this, maybe 1-2 containers and 1 bag but let’s say it’s a party of 4 for this example.

On a per customer basis, you’re spending roughly $0.15 – $0.35 on foam hinged containers + white plastic shopping bags or $0.50 cents – $1.50 on microwavable containers + kraft paper handled shopping bags per delivery order (for the party of 4 example using standard stock products, nothing branded).  The cost for branded items would be: $0.20 – $0.40 on foam hinged containers + white shopping bags OR $0.60 – $1.85, respectively.

What’s the Cost?

Wait what? I know you’re thinking the cost is right above.

But is it really? What I really want you to think about is what it’s costing you to use the free bags and containers.

It’s more than a mere $1.50, that’s for sure.

Consider what happens once the delivery order leaves your restaurant and makes its journey into the customers’ hands – the walk from the restaurant to the driver’s car/bike or on the way up to the condo/home/office.

There may be various sets of eyes seeing that branded bag carrying the food and you know what those people think when they see the UberEats bag ”Oh yeah, UberEats, I should check them out tonight to sort out dinner.”

The reality is that companies like UberEats and SkipTheDishes know that getting in front of their potential customers’ eyes is very important, especially considering the fierce competition. They know that they can get the most bang for their bang for buck by having their brand seen over and over, especially at the point of contact where the customer receives the food order.

When you use their branding all over your orders, who do you think the customer is going to think of first the next time they place an order? I bet you it won’t be the name of your restaurant.  

Branding is a Very Low Cost Way to Advertise Your Restaurant

Consumers these days require social validation. They want to see that others are using your product or in this case, eating your food. Custom branding your bags shows thousands of people that others are ordering your food.

Every time you have an order for takeout, a catering event, or delivery pick up service, it is your duty as the brand ambassador for your restaurant, to make sure that every pair of eyes that are eating your food or see your food being delivered, know exactly where it’s from.

The next time your customers feel hungry and decide to place an order, you want them to think about your food as last experience of what they ate when they ordered out, not UberEats or SkipTheDishes.

To find out more about how to get your bags or takeout containers branded, get in touch with us.