“If I’m buying your containers, why can’t I just get them directly from you?” is probably one of the first questions you have asked a sales representative from a plastic food packaging manufacturer. And it’s a valid question. You run a business that requires getting your food into the hands of your customers safely and efficiently. You thought you knew about buying food packaging for your business. So why is it so hard to get the packages themselves? Are they locked up somewhere secret and you need some kind of James Bond-level skills to access them?
We hear your pain and understand your frustration. Having worked in the plastic food packaging industry for over half a century, we have helped countless businesses get the necessary packaging solutions. And you’re not the first one to have this concern. We are here to show you what we have learned.
In this article, we’ll guide you through the details of direct sales and explain why it may or may not be right for your business. It’s a little bit more complex than you might think. You will soon understand this process better, no secret-agent training required.
Getting to Know Direct Sales
In plastic food packaging, direct sales refers to the process where a manufacturer sells its products directly to the customer, bypassing intermediaries such as wholesalers or distributors. By avoiding these third parties, customers seem to be saving money.
Think of a direct sales approach like a local band playing small venues and selling CDs directly after their show (remember CDs?). They sell directly to the people who want their music, and no middlemen are involved. The experience is personal, but their reach is limited to those who happen to be at that specific venue on a particular night.
Direct Sales Snag Number One: Qualifications
You’re probably picturing walking into a manufacturer, cutting them a check, and driving off with your packages in the back of a truck.
It’s not quite that simple.
Most, if not all large, and credible, manufacturers will require that you have a minimum volume of cases to qualify for direct sales.
Is it one case?
Five?
Nope.
It’s probably closer to a truckload of cases per order with a commitment to at least a few truckloads monthly. This is because the manufacturer has to be cost-effective in shipping the order. If you order 20 cases at a time, the manufacturer will not be efficient in managing and shipping your order, causing increased costs and complexity.
When buying direct, the manufacturer should be your partner in providing you with packaging solutions. As with every great partnership, it needs to be mutually beneficial to have a prosperous business relationship.
Direct Sales Snag Number Two: Internal Problems
When buying food packaging directly, you will have to contend with more than just the manufacturer. You will have to deal with freight companies and storing larger volumes of purchased materials. Additionally, you need to prepare for potential issues in your own business. You should be aware of the following challenges to prevent disruption at your company:
- Storage: Remember, you’re most likely ordering 500+ cases at a time. Where are you going to store all those boxes? Do you have a space or need to investigate renting one out? You can try and get clever but we don’t think your patrons will think it’s fun that you’re using boxes as chairs.
- Shipping: In addition to storage, you will incur the cost of shipping your product.
- Multiple Vendors: Most people prefer a one-stop shop for all their needs. If you’re a retailer and want to package everything your customers need for the perfect gourmet experience, you have to think beyond packaging. This means you will have to go to separate vendors to buy cutlery, cups, and napkins. Working with a distributor can mitigate these extra steps.
The Power of Distribution
Overall, the most commonly used method of sales involves working with a distributor for your food packaging needs. The value of a distributor cannot be stressed enough.
Let’s revisit our analogy with the small, local band selling their CDs after their concert. They’ve cut out the middleman and are keeping all their profits. However, as mentioned, they only sell to people at that specific venue after their concert.
How would this situation look if they used a record label?
The band would work with multiple intermediaries: recording studios, music streaming platforms (so long, CDs!), and marketing teams. These parties help the band reach millions of listeners across different countries and platforms.
The band doesn’t personally handle each sale, but they can distribute their music far more widely and efficiently.
For plastic food packaging, distributors are like the record label. They’re designed to move enormous quantities of packaging through established networks, not to manage individual consumer transactions.
The distribution model allows manufacturers to focus on what they do best: creating high-quality packaging — while letting specialized intermediaries handle the complex web of sales, logistics, and customer relationships. The distributors contribute enormous value to both the customer and the manufacturer, including, but not limited to:
- Proximity: Distribution centers are located nationwide and internationally. If you’re ordering a standard, off-the-shelf package, there may be a center near you, shortening your order’s lead time (the time it takes from placing an order to being shipped).
- Logistics: Distributors can alleviate potential problems your business would have had to incur. They will store products and ship them when your order has been placed.
- Other products: It’s important to remember that the distributor is working with multiple manufacturers of different products. You can take advantage of having other products shipped to your business that your manufacturer may not produce.
The Bottom Line: Is Direct Right for My Business?
While the dream of direct purchasing might seem simple, the reality is that distribution networks exist to make your life easier, not harder. It may appear cheaper when buying food packaging directly, but the price of shipping and storage end up costing you more. You can navigate this landscape more effectively by understanding the intricate relationship between manufacturers, distributors, and businesses like yours. Your packaging journey doesn’t end with a single transaction — it’s about finding the right partner who can deliver quality, convenience, and value to your business.
Finding the right fit for you is our priority, whether that’s Inline Plastics’ solutions or another option entirely. Have any questions? Contact us today, we’re here to help.
