Lipsticks can be virtually the same on the inside. The same formula, the same size, similar quality. But one is sold at three times the price of the other, and the purchasers are willing to buy it. It’s all about the box. Packaging is the value before customers open the product. Let’s discover how to quietly determine your price and how to utilize that.
The price is set before opening the lid!
This is where brands get it wrong. A customer’s price expectation is created within a second, before he tries the product.
They can see the box, pick it up, feel its weight, and immediately give a rough estimate of its value. This is known as price anchoring and takes place below conscious thought. By the time they reach the actual price, they have already decided what is reasonable.
The first impression is created through:
- Packaging design.
- Weight and hand-feel.
- General attitude of caring.
If you get this right, your price seems just right. Mispronounce it, and even an affordable amount seems too expensive.
The high quality of their packaging reflects their high price.
Consumers are willing to spend more on items they perceive as valuable. With beauty, the packaging can convey that feeling, and more.
A heavy lipstick in a nice box has a luxurious feel, and a high price should come as no surprise. A thin, light lipstick box looks cheap and is not worth the price to the consumer. The formula remained unchanged. It was only the impression that did.
Packaging that is premium helps justify a premium price by:
- Adding value to the product.
- The quality and care that is indicated.
- Competition based on the cost of experience.
It is good cosmetic packaging that enables you to price your product correctly (not what a cheap box will get you).
Understanding how to set the price for cheap packaging caps.
Here is the ugly side to it. Regardless of the quality of the product inside, weak packaging limits your pricing.
If a box is simple, so is the product. They won’t want to pay a premium price for a product that feels “normal” to them. Your packaging raises the bar on your price, and your entire brand is trapped with you, not even knowing it.
Low-cost packaging restricts you to:
- Perverting good products to make them ordinary.
- Lowering perceived value.
- Repelling high-dollar customers.
If you’re looking to rake in the extra cash, the packaging must get you some of it first. A cheap box costs you money on each and every sale.
The little things that convey meaning.
Some information subtly conveys a product’s value to its customers. Little things go a long way, and can raise the perceived value for little cost.
Weight is an important factor; a heavy box will cost money! Complete the job as soft-touch and foil are perceived as luxuries. The opening experience is important, too, because if it is smooth, it looks premium. Every detail pushes the asking price up a bit.
Value-signaling details include:
- A firm and substantial feel.
- Standard or premium finishes, such as foil or soft touch.
- A nice, pleasant beginning.
None of these is costly. Packaging details pay off for the attention they can give your product when it’s packaged together.
One of the most important things to keep in mind is consistency.
Something light, but strong. If all the parts are designed to work together and appear well thought out, the brand feels like a well-integrated entity that could command a higher price.
A brand that looks confident is trusted by consumers. This uniformity in each product conveys that confidence. Worn-out or incoherent packaging does not give a brand confidence, and a lack of confidence = a lack of premium pricing.
Consistency helps prices in the following ways:
- Giving a brand a sense of maturity.
- Developing trust throughout the range.
- Making a premium place.
A confident brand will have confident pricing. Your packaging is your way of demonstrating that confidence before any word is read.
Match up the Packaging with the Price
It’s a find-the-balance point, and here it is. Make sure your packaging matches the price you wish to sell it at, as this will make buyers question its value and lead to lost sales.
Premium packaging must be used with premium $s or customers will feel cheated. Ultra-luxury packaging is a killer on affordable prices. The objective is that of alignment of price, product, and packaging.
If you want to match the packaging to the price, ensure that:
- Premium prices go hand in hand with premium packaging.
- Budget products are packaged appropriately.
- All factors are in place for the customer.
If the price and packaging are compatible, the selling of fair deals is the outcome that is endowed.
Packaging is an investment, not a cost!
Many brands consider packaging as an expense to be reduced. Smart brands have it as an investment in price. There is a direct return on good packaging, which you can pass on in the form of a higher price.
Think about it. If you can increase the price by a little bit with better packaging very soon you’ve paid for it and you do it for each unit you sell. In a full product line, that’s real cash that a lower-priced box would’ve missed.
Packaging is self-sustaining in the following ways:
- Supporting higher prices.
- Lifting perceived value.
- Working on all units sold.
In this context, smart packaging is one of the best investments that a beauty brand can make.
Final Thoughts
So, how does packaging play “stealth pricing” on your product? It creates a first impression, locks in their price expectations, and conveys your product’s value before they open it. The good box comes at a good price. It is capped by a low-budget box, which is very quiet.
Details are extremely important. The price that any buyer will pay is influenced by weight, finish, consistency, and alignment. If your packaging is priced at the level you desire, it can all seem fair, and you will get buyers to sign without any hesitation.
The best thing about cosmetic packaging is that it isn’t a cost, but an investment. If done properly, it will allow you to charge what your product is truly worth. Do the right thing, and your packaging helps to raise your price and your profit on each deal you close.
