Regaining Lost Margins with Flexible Bags

June 26, 2015

Picture this:

Your company has created a product that has been skillfully and carefully perfected, and consumer demand is rising. It’s time to get your goods in the hands of soon-to-be loyal customers and brand advocates. You reach out to a contract manufacturer to supply the product’s packaging, but over time, you notice profits aren’t quite where they should be. You know what you’re offering is of outstanding quality.

So what’s with the lost margins?

There is a simple answer to this, and it all boils down to companies failing to gain control of their own packaging. When a contract manufacturer steps in, markups for either the company or the end user are the result. Businesses end up paying a premium for their own packaging instead of watching the profits roll in.

Profit should be in the hands of the company, says David Marinac, President and CEO of ABC Packaging Direct and Working with a partner to supply flexible retail packaging can have a dramatic effect on improving the bottom line.

Most retailers overlook packaging as an important way to save money. Controlling your own packaging solutions, or working with a trusted partner, can actually save you thousands of dollars in the end.

One company that saw the value in exploring packaging options as a means to regain lost margins and earn profits is Roland Foods. A leader in marketing superior food with quality ingredients, the company was being charged 85 cents per product when relying on a contract manufacturer to handle their packaging. By partnering with, the cost was reduced to 75 cents per piece.

Think 10 cents won’t have a real effect on your bottom line? Simple math shows the company ended up saving hundreds of thousands of dollars by handling their packaging needs. As an eco-conscious business, a $400 million dollar Food Marketing firm needed to find a partner that would not only help save them money, time and resources, but also share the same sustainable values and business practices. has been that solution, offering environmentally friendly packaging and flexible bags for freshness without extra costs involved.

Putting packaging needs in the hands of your team will help your business cut costs and avoid unnecessary expenses. Contract manufacturers benefit from this, too, as they are trusting experts to handle the packaging of the firm’s products instead of scrambling to find a solution. Placing a more careful focus on packaging will result in higher profits, happy customers and sustainable growth for your company.

Topics: flexible retail packaging, increase profits, save money, flexible bags, lost margins, stand up pouches