As a business, you rely on the profits accumulated by customers buying products from you. Therefore, the condition of your items that you sell need to be in perfect, sellable shape at all times. A major factor in this is the packaging that you use.
While in most cases your packaging is efficient and presentable, it can only take a few instances where it is not for customers to lose faith in your company and stop making purchases from you. Below are 5 ways that package leaks and defects can harm your business and your ability to be successful.
1. Hurts your brand name
Customer satisfaction is a top priority for most businesses. Package leaks will result in defective products which will lead to customer dissatisfaction and a loss of faith in the quality that you offer. If your customers are not satisfied, it hurts your brand name and you may end up losing them to your competition. Such customers will most certainly let others know about their experience with your product, warning family members, friends, and colleagues to not purchase your products. This can definitely hurt your brand name.
Leaking packages can lead to spoiled products that customers will have to return and seek a refund. Customers will feel inconvenienced and disappointed when they have to endure this process. This will make your business synonymous with defective products therefore hurting your brand credibility.
Package leaks can result in liabilities for your business. There are several liability claims that your customers can file against your company. For instance, when your customers consume spoiled products due to the faulty packaging, they may become sick. Such customers can seek compensation for medical expenses, pain and suffering, as well as lost wages that may result from consuming your products.
Customers can also file a lawsuit against your company in cases where your products cause them severe damages. Such trials can be expensive for your company as you will have to hire lawyers to challenge the lawsuits in court. Compensation can be overwhelming if you lose the case and may affect your ability to survive as a viable company.
Leaking packages can cause products to become inoperable, spoil, get moldy, or become stale depending on the nature of it. This can force customers to return your products and ask for refunds. Product returns and refunds will result in loss of revenue as you will have to provide the refund, incur an additional cost of repackaging, or address your faulty packaging process.
Packaging leaks can result in significant losses in sales as such products may become unsellable. Such products may be perceived as low quality and drive customers away. When customers purchase faulty or spoiled products, they may never turn to you to fulfill their needs again. This can lead to a decrease in your profits.
If your products have an expiry date, all customers purchase your products with this expiration date in mind. The slightest leaks in your package can, however, make your products go bad well before its expiry date. Because the customer will assume the product is good because it is before the expiry, they may consume it and this can cause sickness and, in extreme cases, death.
Having spoiled products as a result of package leaks can also lead to significant costs for you. This is because you will lose a lot of money replacing the spoiled products and issuing recalls on the items affected by packaging defects.
5. Increased waste
Faulty packaging can increase the amount of waste your company has to deal with. If you send a product that leaks, chances are customers will send it back to you. The product can no longer be sold and it, therefore, becomes waste.
Companies spend a lot of time and finances on quality leak detection equipment. Increased waste that comes with package leaks can reduce your company’s revenue hence hindering the growth of your business and its ability to be profitable. Also, an increase in waste can affect the environment which poses a serious challenge to most companies. This is because businesses are required to observe proper environmental management.