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Economies of Scale
First, consider it a given that the quality of the
product is the same or better than what you would buy at your
local food shop. Second, consider the detail involved in
producing a one-of-a kind custom product made exclusively for
you. The production costs alone automatically raises the price
particularly if the volume is low. And that doesn't even include
shipping and other packaging. So what actually increases the
price?
Take for example one case of bottled water you
might typically buy from your local supermarket or discount chain
such as, Costco or Walmart in the US. You'll buy this water at
pennies on the dollar. And why is this so cheap? One major reason:
large food chain suppliers are printing millions of the same label,
attached to the same product, for millions of customers. This
makes it cheaper to produce because the costs can be spread out over
millions of buyers.
Ya Gotta pay to play
Now what if you only wanted a few cases of that
water, produced with your name or logo on the label, and with your
very own graphics like no other in the world. Imagine also that
you want to know that your beverage meets FDA standards and any
other regulatory requirements with nutritional contents clearly
displayed. And lets go a step further to say you'd probably
want to make sure that the label and other packaging is as durable
as it is pretty so it can withstand placement in a bucket of ice on
a hot summer day.
You may even want to change the shape of the
bottle completely or add your own special flavoring. And
you may want some of your beverages in glass and some in
plastic. Ah-ha, now we're talking money. While it is
difficult to find all of this in one vendor, Custom Beverages.com can
do the entire project for you, but it changes the entire means of
production. That is to say, it puts into action an extensive
supply chain of companies across different industries that work
behind the scenes to create your unique product.
Custom Beverage Solutions puts into action the required equipment, materials,
personnel and possibly additional vendors to
work on the project. For example, a team of people have to be paid
to: design or setup your artwork, create proofs or prototypes for
your review, make revisions, manufacture the final, product, and
package and ship it to your desired location. We work closely with
you on the creation of your artwork and require a signed approval on product proofs. This helps to ensure accuracy
that the product meets your specifications prior
to production.
This part of the process alone could take days,
weeks or even months. Each situation is different. And it can
be extended based on the number of parties involved in
decision-making or the complexity of the project. Yet the
proofing process is needed as it serves to protect both the client
and the supplier. It ensures that clients receive what they
pay for, and that suppliers are not stuck with un-usable product.
Bear in mind the product cannot be resold to other
customers because it is customized just for you. This entire
process requires time and money and thus adds to costs that are
passed on to the buyer.
Bottom line: when producing a custom brand you are
dealing with a totally different type of product and business.
While the custom supplier and your local supermarket may sell
similar products, they actually operate on very different business
models and structures. Custom suppliers can provide highly
specialized services to meet your unique needs/interests, but you've
got to pay to play.
You get what you
pay for
This is where we come
in. We've developed a niche in creating custom beverages.
We work with a network of bottlers in the US and
Canada. This makes us large enough to service high volume
demand nationwide, yet small enough to produce short run
orders within reasonable price points. While on the one hand
we can be flexible and creative to produce almost anything you want;
on the other hand lower volume means higher pricing for you. This is
largely why we have minimum purchase amounts. In essence you get
what you pay for! Below are a few suggestions to help reduce
your costs and get more bang for your buck:
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Tips
for Buyers
1. Order in high volume and pay less
per item. As described above this helps to reduce your overall
costs. The costs per item can be spread out over total volume.
2.
Keep specifications clear and
simple. The more complex your order, the more you can
expect to pay. For example: if we have to order a special
ingredient, flavor, bottle shape, color or size, apply a unique type
of packaging, or order from another country, it is going to cost
more, no way around that.
3. Order early. Turnaround time is clearly
longer than buying an off-the-shelf product. In fact add a few
extra days to be on the safe side. This is because: 1. the
proof approval process takes time (see inset below), and 2. a custom
house may need to partner with 1 or more vendors to create exactly
what you want.
4.
Shipping is what it is. Freight is a
necessary evil, particularly with today's escalating fuel
surcharges. With freight you are often paying for
labor, time, fuel, tolls, or even customs/brokerage fees if your product ships from
another country. Requests for inside delivery or liftgates add
additional costs. Order in high volume to get volume discounts to
the extent possible for freight. This means ordering pallet or
container quantity. Anything under this is going to cost
more.
5.
Request a random product sample and put
everything in writing. This protects all parties involved, reduces
the cost of repeated revisions, avoids surprizes down the road, and
ensures accuracy and timely response. No matter how informal
your supplier-client relationship is, always follow-up order related
conversations with a written note. If you request a custom
sample vs. a random one, expect to pay more. It simply costs
more money to produce one product than many.
6. Keep revisions to a minimum or
expect to pay more. Hey someone has to be paid to keep
re-setting every new idea that pops in your mind. This eats into
overall production costs. Simply put: time is money and you pay for
it.
7.
Establish a timeframe for deliverables.
This helps us schedule a realistic project timeline for completion
of your product in keeping with our own internal production runs and
scheduling. We'll know what is or is not possible. If we
can't do what you want, we won't waste your time or ours and we'll
tell you upfront..
8.
Contact us before ordering online. Tell
us how you plan to use the product, your anticipated volume and
delivery locations. Take a moment to realistically think
through your anticipated quantity. Chances are you'll learn a
lot more over the telephone and usually find out about a wider range
of customization options. Who knows you might even be able to
negotiate a lower price.
9.
Commit to continuous orders for the best
deals. When you actually establish a track record, we are in a
better position to reduce your price. This is because we can produce
your product in higher quantity for use over time. When ordering for
the first time, don't even try to negotiate a lower price by
saying you will order more in the future. Most suppliers have
heard this a million times and rarely believe it until it actually
happens or until specific quantities are put in a contract or
agreement. Bottom line: 'the proof is in the putting.' So don't
expect any breaks on first-time orders, but consistency and
commitment wins reduced prices.
10. Consider custombeverages.com
as your "exclusive" supplier of choice
for private label, etched and screen printed
beverages.
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Typical Order
Process
Avg Total Time: 3-6 weeks
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1. |
Price
Quote: We provide you a price
quote. Pricing will be based upon desired quantity |
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2. |
Product
Sample: You submit artwork
according to the format for your specific product
(logo/message design) |
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3. |
Artwork
Submission: You submit artwork
according to the format for your specific product
(logo/message design) |
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4. |
Proof
Approval: We prepare an artwork
proof for your approval. For legal, quality and accuracy
reasons we do not begin production without a signed client
approval. This proof is usually in the form of a .pdf
or.jpg file. |
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5. |
Payment:
At this point we request payment whether payment in full or
50% deposit |
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6. |
Production: Your product is produced and
shipped |
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We can design for you if you
wish Call to Request A Quote. However in the spirit of
saving money it is recommended that you submit your own design
as artist time can be quite costly.
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