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.