Warehouse Club Packaging
An effective club package will not only answer potential member questions, explain benefits and features and help sell an item but also address club distribution and merchandising strategies. The following are some packaging concepts that can increase your product’s chances of success.
Five Feet, Five Seconds
As a warehouse club supplier, when it comes to your product’s package, design and message, your goal is simple: within approximately five feet of your item and within approximately five seconds of seeing your SKU, a member, who does not have your product on his shopping list, should be “drawn” to your item in some way.
Operations
Warehouse club items must be able to safely, efficiently and securely move through the supply chain. Once they arrive at the club location, those pallets should be display ready. The goal is to reduce the number of times a club employee “touches” a pallet not just during shipment but also while in that club location.
Larger Packages
One strategy that club buyers constantly follow is to evaluate the package size of the products they purchase to determine what items could be sold in larger quantities. Transitioning an item into a larger package size benefits the clubs in five ways. The first advantage results in a better member value as a lower unit cost can be achieved. The next four benefits positively influence club operations: the club’s average transaction is increased, studies show that consumers who purchase larger packages consume those items at a faster rate resulting in quicker repeat sales, higher gross margin dollars are generated and distribution efficiency is improved with more product being shipped.
Learn More
To read more about BJ’s, Costco’s, Sam’s and PriceSmart’s packaging strategy and how to sell them, download for free the Packaging chapter from the 2024 Warehouse Club Industry Guide.