This unique type of packaging takes place at the club store chain, which has 23 locations in Central America and the Caribbean.
That’s according to the March 29, 2006, issue of Warehouse Club Focus (www.warehouseclubfocus.com).
The article says that of one the key concepts PriceSmart developed to offer its business and consumer members an even better value is its bulk packaging program. PriceSmart has up to six special bulk-filling machines that are custom-made for each location. The machines are installed in the back of the club stores.
PriceSmart orders items in bulk in large sacks (that weigh up to 2ꯠ-lb each when filled), which are placed on top of the machines. The machines are gravity-fed and a PriceSmart employee fills up a durable plastic bag with a set amount of the product.
There are 20 items in the bulk program, including rice, beans, dog food, powdered and liquid laundry detergent, liquid softener, disinfectant, cereal, oil, sugar, powdered milk, and flour.
PriceSmart developed the program, says Warehouse Club Focus, to reduce packaging costs while retaining a high-quality product. Before the program was introduced, PriceSmart generated gross margins of 2% to 3% on these highly competitive commodity items. After the program was introduced, PriceSmart was able to lower its retail prices, offering savings up to 20%, while increasing its gross margins.
