Effect of Packing Cost on The Sales Price and Contribution Margin

The basic characteristic of packing is to protect the product from external factors while the product is delivering to consumers. However, recently packing has become an indispensable aspect of marketing. Because, packing is considered as a silent dealer which directly reaches consumers. Packing is one of the most important factor of product sales. Consumers assess a product with its packing and make up a purchasing decision accordingly. In addition to its protective function, packing also performs functions such as selling and communication.Recently, firms have begun attaching great importance on packing investments. A high-quality and attractive packing means expenditure. A firm can increase its sales as much as it creates difference with its packing. Therefore, it is required to take a risk of increasing the packing costs for increasing sales. Increasing packing cost is an important factor of prices. In this study, the relation between the packing cost and price has been researched by making regression analysis.