In a decade since it began, Built It Big has transformed the sustainable packaging market. Founded by Bob Seiger and three family members, this private limited company has created a niche, growing steadily while prioritizing eco-friendly solutions.

BIB began with a clear vision ‘to provide innovative packaging that minimizes environmental impact’. Through smart investments in technology and production processes, BIB has enhanced its efficiency, lowering unit costs consistently with scale in different areas! By leveraging advancements in manufacturing (mostly investing in new machines and production techniques like batch production), BIB has reduced costs, allowing them to offer competitive pricing without sacrificing quality. This operational efficiency has become a cornerstone of their success, enabling them to meet increasing demand in the market. BIB have pursued a Japanese strategy that seeks constantly improve over time (total quality management). Specifically, BIB run weekly meetings in which employees are invited to submit ideas on improvement, no matter how large or small their scope! Bob Seiger has noticed that over time, these ideas have helped to drive down costs by continued improvement.

As BIB expanded, it recognized the importance of specialized roles. By employing skilled professionals in key areas rather than have all staff do a little bit of each job, BIB has not only improved decision-making but has also fostered a culture of innovation. Initially, hiring specialist staff increased costs (with higher salaries and recruitment costs) but over time, the benefits of these experts helped to drive costs down!

With a profit motive at the forefront, Built It Big is not just content with its current success. BIB recognized that growth as a strategy could help run the business at a lower unit cost in several ways!

Initial talks focused on whether they should focus on internal growth (growing organically) or trying to buy up other, smaller, local businesses and growing externally! After some discussion, it was decided that they would pursue an ‘internal growth strategy’! This was decided because buying smaller local businesses would be too expensive and too complicated for a new business and increase the risk through debt! 

Whilst diversifying did initially increase costs, BIB found that it also decreased the risk of overspecialization and allowed them to generate several new revenue streams! BIB did find that to achieve this position, they initially needed to borrow, which caused disagreements among the management team. However, they also noted that the interest rates they were offered were significantly lower than when they began in business! This suggests that the banks’ view BIB more positively as they wish to borrow larger amounts now, but also they have a greater range of assets to use as collateral. The new loans are partly intended to spend on capital investment (new machinery, factory and premises) but also to advertise using more expensive mediums, such as above the line (ATL)! These ATL methods would give a greater return to investment or, more clicks for few dollars!

BIB also developed strong relationships with suppliers as they had now been in business for a decade! This meant that they could obtain better lines of credit and lower costs through buying large quantities of stock (bulk buying)! 

As they grew, BIB noted that the number of new and smaller entrants to the market has shrunk, which suggests that their increasing dominance may be creating some barriers to entry into the market or at least some deterrents to new entrants!

Whilst satisfied with the growth, Bob Seiger wondered, ‘how big can we grow’ before diseconomies of scale start to set in!