Paper Tube Co — Tea Packaging Project (Elizabeth)
Sales call between Parag (Paper Tube Co) and Elizabeth, a prospective customer launching a loose-leaf tea business. The call covered product requirements, MOQ economics, and a live demonstration of the Razzie Tea scaling model.
Overview
Elizabeth is launching a new venture selling loose-leaf tea sachets, primarily through a D2C channel with plans to expand into retail, big box, B2B, and hospitality. She initially inquired about 500 pieces; the call focused on reframing her quantity expectations and demonstrating the long-term value of tube packaging.
Related client: [1]
Product Details
- Product type: Loose-leaf tea sachets
- Packaging format: Paper tubes
- Sales channels: D2C (online), with plans for retail, big box, B2B, and hospitality
MOQ & Pricing Discussion
Elizabeth's initial inquiry was for 500 pieces. Parag walked her through the economics of scaling up:
| Quantity | Notes | Approx. Cost/Tube |
|---|---|---|
| 500 pieces | Below minimum; not offered | — |
| 1,000 pieces | Minimum order; setup fees apply | ~$2.50 |
| 2,500 pieces | Setup and plate fees waived | ~$1.00–$1.50 |
Key insight shared with Elizabeth: For any order under 2,500 pieces, a plate fee and setup fee apply — often doubling the per-unit cost of the tube itself. A 2,500-piece order eliminates these fees, making it more economical even though total spend is higher. Total production cost was estimated at $2,000–$3,000 regardless of quantity tier.
"For a $2,500 production, landed cost on the tube is about $2.50 on your first order. If you're doing 2,500 pieces, fees go away. Your all-in might be somewhere in the neighborhood of $1 to $1.50." — Parag
Razzie Tea: Scaling Model Demonstration
Parag used Razzie Tea (a PTC client) as a live case study to show how a small tea brand can scale using blank tubes with in-house labeling.
- Timeline: Started August 2024; now in 170+ retailers
- Method: PTC sells Razzie blank tubes; Razzie applies custom wrap labels in-house
- Why it works: Allows the brand to manage multiple SKUs without committing to fully custom printed tubes for each flavor — critical when it's unclear which flavors will take off
- Add-on: PTC provided a QR code insert inside the tube
This model is directly applicable to Elizabeth's situation: starting with blank tubes and in-house labels reduces upfront commitment while enabling rapid SKU expansion.
Next Steps
- [ ] Parag to email Elizabeth tube samples
- [ ] Parag to request Elizabeth's target fill weight and tube size
Open Questions
- What is Elizabeth's target fill weight / tube size?
- Is she constrained by budget, timeline, or storage space?
- Will she stay D2C or move to retail in the near term?
Related
- [1]
- [2] (if created)
- [3]