Unique Custom Packaging Model Opens Club Store Doors
March 28, 2006 (PRLEAP.COM) Business News
For vendors looking to sell product in club stores, the high cost of custom packaging for required “test runs” has made the venture a high stakes gamble. A new process using pre-set club store sizes, however, is opening the door to national sales by cutting the cost by 50% or more while compressing the process to two weeks from the usual 6-8 weeks.To gain entry to club stores’ high-volume national markets, vendors have been required to package their product for “test runs” of about 1,000 units to determine sales potential. Unfortunately, this has required special retail package design with typical costs of $15,000 to $20,000 to gain entry in the door. If the product doesn’t sell, club stores return the unsold items, leaving vendors out of their up front costs and possibly this product out of the club stores.
Given this scenario, vendors have needed a retail package design arrangement that provides access to club stores’ national markets at lower cost and risk.
Fortunately, a forward-thinking leading contract packaging provider is filling this need. Recognizing the vendors’ dilemma, AVC Corp., a one-stop, vertically integrated packaging facility in Torrance, Calif., is helping vendors cut custom packaging costs for club store required “test runs” by half or more while speeding the process to a level that can’t be matched by traditional packagers.
Since AVC Corp. has the in-house tooling for standard club store packaging “frames,” which form a package’s outer dimensions, they are able to quickly and inexpensively create the custom packaging needed for “test runs” with minimal retooling. Vendors pay for the inner packaging cut outs and tooling, minimizing their cost and risk for a chance at selling in national club stores.
Besides the standard club store packaging sizes, such as 15”x10” and 22”x15”, AVC Corp. offers a complete line of custom packaging options including some value-added ones designed to grab attention. With the tamperproof security, size, and function of traditional packaging, the company offers “reusable retail packaging,” which opens like a book and includes storage pockets for keeping multiple items in one place until needed. AVC also provides an environmentally friendly packaging option made from a renewable corn-based resource can also biodegrade in approximately 80 days when discarded into an industrial landfill (instead of the thousands of years for traditional materials).
By lowering the up front cost of getting products into club store “test runs,” a company like AVC — which has every element of contract packaging manufacturing on-site at their facility — lowers the risk of aiming for a national, club store market.
AVC’s business model allows them to offer contract packaging services at essentially cost to help get vendors’ products into club stores in a mutually beneficial arrangement. In return, the company asks simply for a contract for first production orders at a pre-set, agreed upon price.
“If the vendors succeed, we succeed too,” says Guy Marom, Executive Vice-President of AVC Corp.
Additionally they also create club store packaging “mock ups” for vendors in need of this service. It offers a variety of fast, economical packaging frames and options to meet the needs of any retailer. For more information visit www.avccorp.com.
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For More Information Contact:
Guy Marom, AVC Corp.
Phone: (310) 533-5811
Fax: (310) 533-6077
Torrance, Ca., 90501
Email: guy@avccorp.com
www.avccorp.com