% of cost for packaging

If it really is premium, it’s more than just numbers. it’s how much value does the packaging add. Does it make the consumer think more highly of the brand/product, tell other people, purchase again, purchase even though the price is higher?

Premium brands require more than bottom line thinking.

If you look at Apple, they obviously spend a lot on packaging. Could you put a iphone in brown cardboard box with a 2 color stick and off the shelf packing peanuts? Sure. Would the same number of people buy it? Probably. But the custom packaging adds a lot of emotional value that increase minshare as well as marketshare, so it’s worth it.

R