March 15, 2012
Eric Fialkoff
My oldest son Nate, like many 13 year-olds, is a bit tech-obsessed (though I'm strangely satisfied by the fact that he is one of three kids in his middle school that does not have a cell phone). Through his love affair with i-Toys, Nathan reminds me that retail business and life don't always see eye to eye.
In retail, you actually can judge a book by it's cover. Customers certainly do.
Nate walked into a well-known retail store and purchased a brand new, perfectly good iHome for a full 60% discount off list price. There were many identical iHomes selling for full price in the same store. There was only one difference between the full-priced items and Nate's bargain: the discounted item was clothed in damaged packaging.
Despite making my living in the world of packaging, Nate's story still surprises me.
Somebody, somewhere, wearing a well-pressed suit and crunching big numbers (I assure you this isn't me), knows that a customer won't pay as much for a product when the packaging isn't up to snuff. Doesn't it seem a little backwards that a pretty package, which will usually be recyled or discarded, can make a 60% difference on a purchase price?
Strange as it may seem, pretty packaging is profitable. (I may be as alliteration obsessed as Nate is i-Toy obsessed.)
I give special thanks to my son Nate for inspiring this post. Be assured, my dear son. that your mobile phone will be finely wrapped when I present it to you at your high school graduation.