diff --git a/src/usr/bin/sbopkg b/src/usr/bin/sbopkg
index bb3fcd5..2b53b9b 100755
--- a/src/usr/bin/sbopkg
+++ b/src/usr/bin/sbopkg
@@ -118,6 +118,14 @@ if [ ! -d "$TMP" ]; then
     echo
     mkdir -p $TMP || exit 1
 fi
+if [ ! -d "$OUTPUT" ]; then
+    echo
+    echo "Creating local package output directory $OUTPUT."
+    echo
+    read -s -n 1 -p "Press any key to continue or Ctrl-C to exit."
+    echo
+    mkdir -p $OUTPUT || exit 1
+fi
 # Let's catch Control-C and try to exit cleanly.  Please see the
 # comment to the control_c function, below.
 trap 'control_c' 2 14 15