A product bundle is when several items are sold as one combined product. This marketing tool can help businesses sell more items in one go. For example, we see this m at fast food restaurants that bundle meals, such as the “value meal,” where multiple items are sold together for slightly less than each item would cost individually. In this example, the psychological cost of purchasing all those items is lowered and the buyers feel like they are getting a great deal. A bundle can go by many names: gift sets, package deals, collections, a set.
So why does bundling work? Many times buyers approach their shopping with a price range in mind. For example, shopper A is willing to pay up to $90 for a handbag and $50 for a super cute hat. Shopper B, on the the other hand, will gladly spend as much as $120 for the handbag and up to $20 for the hat. Shopper A is willing to pay more for the hat, but is also interested in the handbag. Shopper B is willing to pay more for the handbag, but is also interested in the hat. Using a bundle you can create an attractive package for both shopper A and shopper B. In this example you could offer a $10 discount to buyers who purchase both a hat and a handbag, creating a bundle priced at $130. This will increase your sales because both shopper A and shopper B would both buy a handbag and a hat. It can be challenging to anticipate all buyers’ needs, but creating combinations like this can make more of your products sell.
Bundled pricing can also be viewed as a service to customers. They can simplify the purchasing decision by coordinating the purchase of related or similar items. Many shoppers don’t want to expend the effort to make these decisions and would gladly pick the item that is already coordinated, such as a bracelet and earrings set or a pair of pants and a top. While they could we worn separately, when worn together they create a whole new look. A similar approach is to combine multiple products that work best together, such as a collection of baby items. With a set of a onsies, bibs, and burp cloths, the seller helps the buyer pick items that work well together.
Around the holidays, you’ll see many gift bundles. This is a great way to market to the harried shoppers trying to shop efficiently for special gifts. This could be two handmade bars of soap and a hand cream sold at a 10% discount to the items sold, if they were sold separately, dressed up further with the addition of gift wrap. A value bundle, such as a buy-two-get-one-free deal or free gift, may be used to draw the buyer in when they might be on the fence to purchase the item.
Bundled pricing is a strategy to attract a large range of buyers: buyers looking for deals, buyers looking for convenience or buyers looking for advice on items that complement each other. Bundled pricing may be accompanied by a discount, but it doesn’t have to be. As a seller, you can make your shipping efforts more efficient by selling more items together and maximize your sales from each customer you attract.
How have you approached bundled pricing? Share what you learned in the comments.