Undoubtedly you have seen the deal meals in a fast food restaurant. Basically, if you order each item on the menu separately it will cost more than if you make your order as a meal. It doesn’t really add up. You’re getting the same amount of food or more for less money simply because you used different words when you ordered. But this is a successful method businesses are using called bundling. How can you successfully implement bundling into your business? What are the advantages of doing so?
What Is Bundling?
Bundling is a strategy marketers use to sell the consumer two or more products or services at a discounted price. For example, Naked Winery has red wine gift baskets to buy. Individually, these bottles will cost you $28 apiece. However, Naked Winery bundles these three wines together into a gift basket which will only cost you $78. If you do the math and you have just saved yourself $2 a bottle.
Usually when a product or service is bundled together the items are somehow related to each other. That’s why in the above example you see three bottles of red wine, although they are all unique to each other; a Merlot, a Syrah, and a red blend. The same is true when bundling shampoo and conditioner or your cable and phone service. It gives you an treasured discount and the company gets more of your business. It truly is a win, win situation.
How can you make bundling work for your business?
- Give your customers plenty of options. Bundling is a great way to discover a new product that the customer will buy again and again. To illustrate, perhaps you know you prefer red wine but you were unaware in the past of how many different kinds of red wine there are. If you’re having trouble choosing, you can buy a red wine gift basket that comes with three different options. That way you get to discover great new flavors and Naked Winery gets a repeat, loyal customer.
- Emphasize how much your customer will save. When you advertise a bundle deal, make it clear to the customer how great the value is. Present the offer to seem too good to pass up.
- Showcase your bundles. Give them their own space in your store or their own page on your website. You’ll find that Naked Wines has an entire section just for gift sets and wine packs. Many websites display their bundle deals on the home page to encourage their customers to get the best value while at the same time selling more of their merchandise.
Is bundling for your growing business? It can be a great incentive to attract new customers and ultimately you will sell more of your product or merchandise. Essentially you will be rewarding your customers for smart shopping and this will gain you loyalty. So why not give it a try? Bundling may be the next step in drawing in more customers and creating more revenue.