The Impact of custom labels on product pricing and Profitability

Custom labels are a crucial element of a product's branding and packaging. They provide essential information about the product, attract customers with eye-catching designs, and help establish a brand's identity. However, custom labels can also impact a product's pricing and profitability.

In this post, we'll explore how custom labels can impact a product's pricing and profitability and offer advice on how to create an effective and affordable custom label that will help your product stand out on store shelves.

Custom Labels and Product Pricing

The cost of custom labels varies depending on several factors, including the label's size, shape, color, material, and design complexity. Therefore, businesses must consider the cost of custom labels when determining their product's price point.

Using premium materials, such as foil or embossed labels, can increase a product's perceived value, but it can also increase the cost of production. However, choosing low-quality materials or a simple design may reduce the cost of production, but sometimes it can also make the product look cheap and unappealing.

Therefore, businesses must balance the cost of custom labels with the product's perceived value to ensure that the product's price point is competitive and profitable.

Custom Labels and Product Profitability

Custom labels can impact a product's profitability in several ways. First, custom labels can increase a product's perceived value, which may result in higher sales and profit margins. Second, custom labels can help products stand out on store shelves, making them more visible and appealing to customers.

However, businesses must also consider the cost of custom labels when determining their product's profitability. Using high-quality materials or complex designs may increase the cost of production, which can reduce profit margins.

Therefore, businesses must balance the cost of custom labels with the potential increase in sales and profit margins to ensure that the product remains profitable.

Tips for Creating Affordable Custom Labels

Choose the right materials

Choosing the right materials can help businesses create an affordable custom label without sacrificing quality or design. For example, businesses can use high-quality paper stock instead of label materials, such as metallic or textured materials. This will reduce the cost of production while still creating a visually appealing label.

Another example would be to achieve the metallic foil look using the digital knock-out and white underlay print over metalized film/paper as opposed to conventional hot stamping and actual cold foiling which both require tooling for.

Simplify the design

Simplifying the design can also help businesses create an affordable custom label. Using a simple design with fewer colors and design elements can reduce the cost of production without sacrificing the label's effectiveness.

Order in bulk

To save on custom labels even more it's advisable to purchase them in large quantities. Label printing companies often give discounts for bulk orders, which means you can save on the cost per label. Besides the monetary savings, placing a larger order will also ensure that you have enough labels for future use. However, before placing an order, it's crucial to assess your business requirements and estimate the quantity of labels you'll require to avoid purchasing too many or too few.

Work with a reputable custom label printing company

For businesses looking to create an effective and affordable custom label, it's important to work with a reputable printing company. Altro Labels, with over 30 years of experience in custom printing solutions, offers a range of options and can work with businesses of all sizes to create labels that meet their specific needs and budget. By working with Altro Labels, businesses can create labels that effectively communicate their brand identity and product positioning, while also being cost-effective and profitable.

Conclusion

Custom labels are a crucial element of a product's branding and packaging. They provide essential information about the product, attract customers with eye-catching designs, and help establish a brand's identity. However, businesses must consider the cost of custom labels when determining their product's pricing and profitability.

By choosing the right materials, simplifying the design, considering volume discounts, and working with a reputable custom label printing company, businesses can create an affordable custom label that is visually appealing, effective, and profitable.