We still have one or two things to finalize but July looks like being a record month for Contact Packaging plc despite being in the midst of a credit crunch with a recession just around the corner.

Despite the excellent sales figures our nett profit is being kept in check by our spiralling fuel bill (30% increase on July 07 despite the fact we sent more out on 3rd party transport) and a huge wage bill but we recognise the need to look after quality staff.

When we analyzed the figures we can clearly see the that departments that are growing are those that are supported by their own dedicated web site; stretch wrapping machines, printed tape and the on-line shop.

The initial investment made by the Company was significant and frowned upon by many (mostly oldies) but the returns have been far beyond our expectations.

We work in a fiercely competitive industry with traditionally low margins. I firmly believe that to show any growth in the current climate you need to grasp modern technology with both hands. Gone are the days of reps cold calling all day long and applying hard sell tactics. There is nothing more frustrating for me than to go to a supermarket for food only to be confronted down the aisles by telephone and dental insurance sales people (Tesco take note, you are the worst). People want to buy products in their own time on their own terms.

Our web sites are shop windows that are there to create an interest. The shops are then staffed by people who know what they are talking about so the customer can be “advised” which is the right product for them and not “sold” the easiest option. Our Printed Tape manager Peter Leatherbarrow has worked his way up from our graphic design department and he has spent many hours operating the machines when we needed to pull out the stops out for an urgent order. Andrew Saxton who manages our stretch wrapping machine business has recently installed a machine at P&O Ferries. Andy said what pleased him most was not receiving the order but a comment that one of their managers had made as this proved to him that he was doing a good job. He told Andy that he was impressed by the way that he fully understood every aspect of the machine. This sort of knowledge can only be obtained through a hands on approach when it comes to servicing & repairs.

Whilst you will never get a more satisfying sales lead than word of mouth has the traditional salesman had his day? Only time will tell but in the short term we will continue to develop all our ecommerce platforms which in turn will be supported by a dedicated customer service team.

What have Car Salesman & Concert Promoters have in common? Their goal is to put “bums on seats”.

Is this not now true for buyers. With our hectic lifestyles any personal time is limited so we need to make the most of our business time. This is why online shopping is growing at such an astonishing rate as so many of us just do not have the time or inclination too trail round the shops for food, clothes and entertainment.

This has a significant effect on the packaging market for a number of reasons. The increase in the popularity of selling sites such as EBay creates a market for packaging material supplies in manageable quantities. As these sellers are catering for a certain buyer and they too want to purchase any requirements they have in a similar way to how they sell.

With this in mind we have invested quite heavily in an ecommerce site to offer a comprehensive range of packaging materials, in smaller quantities at competitive prices. We have put a lot of emphasis on products that should appeal to EBay sellers such as, postal bags, bubble wrap, adhesive tape and boxes. Over the coming months we will monitor the which lines are the most popular and try to expand them were possible.

If you are the sort of person who buys a lot of goods online please visit the site store.contact-packaging.co.uk and let us know what you think. We welcome all types of criticism.