Do not underestimate the importance of packaging. It is what will make the consumer pick up your product... or not.
Visit several stores to see which products grab your attention first. Are you curious about them or do you pass them by? If you want to know more about the product, then its packaging design has somewhat done its job. Next, the packaging should fully explain the product. The packaging can be cute, beautiful, expensive or cheap but it needs to do its job. I am holding an Oil of Olay bottle. On the back it clearly explains how to use it and what your expected results will be. Their logo is clear and large on the front side.
Packaging speaks to perceived quality of a product. If your packaging includes the vital elements then what you are left with is the image.
I have worked with a manufacturer whose product is beautiful but their packaging cheapens it. In addition, due to poor packaging you cannot tell what the actual product is used for or made of.
Your packaging doesn't have to be the most expensive but it needs to be suited to your product. I have seen beautiful woven items placed in clear bags tied with beautiful expensive ribbon along with a custom design tag that make a beautiful statement. That is not expensive packaging. That company thought about consumers and what they would want to see. They considered the types of stores (boutique or mass) that would be stocking their products.
Let's say you offer unique bath products that have proven selling scents and you want to grow your company.