In this topic, I’m going to touch on what are the costing elements that you should consider when giving out a premium to your customers. This is because the cost doesn’t end with the premium itself. The purpose of this article is to ensure that you’ve covered your bases before purchasing the premium only to realize that you have yet considered these costings as well
Cost of repacking
Are you giving away your premium on product or off product? Off product would mean using the gift redemption counter or using promoters to give away the premium. If you are considering on product, then you would need to consider if there are any additional cost to doing on pack. You may need to check with the production team if they are able to pack the premium together with the product and what are the additional cost to the production line in doing so. If you are importing the product as finished goods, then you may need to consider the cost of hiring a re-packer to do so as part of the cost of the premium promotion
Cost of premium packaging
In some cases, you may need to consider the packaging that comes with the premium. Some premium suppliers would have already costed it into the premium, but in some cases if you need special printing as part of your branding personality, you would also need to consider this cost. Example if you are giving away a mug, it usually comes with a box in which it would normally be a plain white packaging without printing. If you would to have printing say your company logo or a plain printing color apart from the original color it comes from, it may cost slightly more. Do note that most suppliers would quote based on how many colour printing you need which can vary from 2-4 color normal CMYK printing to pantone colours.
Cost of repacking materials
Apart from considering the cost of repacking, you would also need to include in the cost of the materials used for repacking eg 3in1 instant coffee FOC Mug. The cost of the plastic material to insert the Mug together with your product, the cost of printing on or off the plastic, the cost of printing a sticker if the plastic is just a plain plastic without printing and the other miscellaneous cost that would be needed for the repacking to happen
I hope this article helps in your consideration in calculating the cost of premium
