All About Product Bundling
Each business has its own unique set of traits and goals that sets them apart. One goal that everyone has in common, no matter the size or industry, is driving more revenue. Product bundling is a commonly used strategy that is popular across industries, thanks to its many benefits.
What Is Product Bundling?
Product bundling, or bundle pricing, is when you group similar items together to sell as a package deal. These package deals are sold at a slightly discounted rate, to encourage customers to purchase the items altogether. For example, if you are going through a fast-food drive-through, it is usually more cost-efficient to order a combination meal than to order a drink, a side, and an entree separately, even if you are getting the exact same items.
Advantages Of Product Bundling:
Product bundling comes with many advantages. First of all, your customers get to save some money! Even though they are spending more money upfront, they will recognize the bundle as a good deal. Product bundles are also a great way to encourage customers to try out new products. If they are curious about several products that are bundled together, a bundle discount can help give them that push that they need. Bundle pricing is also great for bringing in new customers, as they can test out several of your products at once for a great price!
How To Create Your Product Bundle:
One of the great things about product bundling is that there is no one-size-fits-all answer on how to do it. When creating your bundle, think about what goals you want to accomplish, and build your bundles based off of that. Glossier, a popular skincare and makeup brand, offers a wide variety of sets to encourage customers to purchase bundles, rather than single products. All of the bundles have a theme to them- from everyday skincare to makeup variations. By pairing so many of their products together, customers are more likely to purchase the sets to save themselves a few dollars. This also is a great way to get customers hooked on more than one product, and encourage them to slowly start purchasing more from you.
Other bundle ideas could be your most popular items, new items, or items you are discontinuing. You could even do a seasonal or limited-time bundle! If you choose to do a special product bundle, make sure to announce it on your platforms and create some excitement leading up to the release. Offering to let customers customize part of their bundle (for example, choosing what color/size/flavor they would like) will allow them to choose a bundle that they are truly excited about.
How To Price Product Bundles:
The Rule Of 100 is a good one to follow when pricing your products. If your product bundle is selling for under $100, use a percentage to advertise the discount. If it is over $100, use a dollar amount. Even though the price remains the same, your phrasing makes a huge impact on your sales. When thinking about what percentage or amount you want to take off of the bundle, look into how well the products typically sell on their own, and what your cost baseline is. Product bundles are usually between 10%-20% off, but don’t be afraid to adjust your numbers higher or lower if you are not pleased with your results!
Product bundles are a great way to encourage customers to try new things, spend more, and increase the perceived value of your products. Have you ever offered product bundles? How did you decide what items to pair? Let us know in the comments!