Packaging and printing

Jabo, am curious about industries that create packaging and printing services to restaurant, medication, beverages, unga, etc. In some cases you find that they sell one khaki bag at 1.4ksh. How do you make profit? Is this one of those “I have to make 1 million bags to a million shillings” kind of businesses? How does this work?

Its a volumes business, plus bulk printing is dirt cheap.

Its a volumes game here… i wanted to be in this sector but realized its difficult to make it doing peasant business in packaging.

I realized i needed to be in one of the below

  1. Distributor - buying from manufacturers and selling to retailers in shops for day to day usage
  2. Manufacturer - have machines to make the bags
  3. Branding and printing … the guy that designs and prints packaging for the big customers like food manufacturers etc…

Look at the level where you can innovate around and avoid the price wars esp in 2 and 3… Its easier to tell a client, i have a better product for the same price rather than “I have the same product for less”, only engage in a price war if you can source your materials cheaper or you have another price advantage… otherwise trying to sell cheaper than other dealers while getting at same price will kick you out of business faster than KRA.

You can also do other type of packing , like egg packing trays manufacturing … look at this US company dealing with a line of such - www.eggcartons.com.

The other idea in this space is re-packaging of bulk products, buy sugar and other FMCGs and repack in smaller quantities for hotels etc…

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They have machines that print 100 pieces per minute. That kes 114 per minute. The machine runs for 8 hours. Do the math

Enyewe

I saw this as well very few people are even attempting this. I wonder what other factors could be a barrier?

You need to do some nice job marketing and also maintaining the clients