Tweet

Product Bundling to Increase Sales

Guest post by: Karen Andrews

Article Overview: Product bundling is combining two or more complimentary products or services together that creates differentiation and offers greater value to the customer. The key to packaging your products and services is to ensure that the package price is less than buying all the individual items separately. A bundle of products is sometimes referred to as a package deal and a well known example of this is the fast food industry 'meal deal' where you can buy burger, fries and coke for a cheaper price than purchasing all items individually.

Product Bundling to Increase Sales

Product bundling is combining two or more complimentary products or services together that creates differentiation and offers greater value to the customer. The key to packaging your products and services is to ensure that the package price is less than buying all the individual items separately. A bundle of products is sometimes referred to as a package deal and a well known example of this is the fast food industry 'meal deal' where you can buy burger, fries and coke for a cheaper price than purchasing all items individually. Product bundling has many advantages apart from selling more products such as the cost savings and efficiencies in your business by selling multiple products in the one transaction, increased perceived value and customer loyalty. Providing a bundled solution increases the perceived value of your offer and creates customer loyalty because the need to go elsewhere for other products is reduced. Typically a bundled offer will include a product or service that has a high value but doesn’t get repeat purchased that often. When you bundle this with products or services that need to be repeat purchased you are turning what would have been a one-off purchase (or even a one-off customer) into repeat business. Additionally, when you add-on complimentary products or services the price reduction is seen to be in the add-on products which means you can maintain the pricing point of the main product. For example: * Selling computers and offering a start-up ‘start-up’ package that includes software, training and installation. Add-on items that are relatively cheap to provide but greatly increase the value of the offer. * A Consultant offering their services for a fixed fee per month (say $1000) and includes an additional service for a total fee of ($1500). To get both of these services the normal price might be $1800 per month. * Offering free delivery for orders over a certain amount * Selling beauty products and bundling a cleanser, moisturiser and an eye cream. * A travel agent selling a holiday offering a reduction on travel insurance for all bookings over a certain amount. * Offering web design with an additional offer of HTML newsletters and ongoing monthly email subscription for a reduced price * A lawn mowing service that offers tree trimming or rubbish removal for a small additional fee Think about your business; what high value products can be paired with a lower value product to increase the value of the sale but also increase the value offered to the client.

Related Articles
  Companies Mutate or Die
  Practical Ways To Grow Your Small Business
  10 Easy Ways to Increase Sales
  How to Increase Sales and Reduce Costs by Using These Simple Sales Coaching Tips
  What are the Different Types of Resell Rights?
  How to Increase Sales and Reduce Costs Using These Simple Sales Coaching Tips
  Small Business Coach - Do Your Pricing Strategies Maximize Your Profits?
  Entrepreneurs – Increase Your Sales With Just A Little Extra Effort
  The four fundamental strategies to increase business revenues
  How to get a better response to your marketing by turning features into benefits
  Product Launching - Packaging Products Together
  Want more sales? Who doesn’t? Have you considered introducing new products or services to demonstrate that you are truly listening to your loyal customers?
  15 Ways to Beat A Recession
  How to Win More Sales
  Recent ISM, CAPS and Kearney Report Perpetuates Dangerous Supply Chain Myths
  Twelve Creative Ideas for Using Teleseminars to Grow Your Business
  How to Build Effective Spreadsheets
  Building a successful sales career or business
  Victim or Victor: Is Your Small Business Prepared to Profit in a Recession?
  First Things First - Solve The Right Problem

Article Tags: complimentary products, increase sales, product bundling, sales tips



Related Forum Posts
Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Online Sales and Marketing vs Traditional - [quote="ltrahan":31w9r2iz]Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz] I second the request...
Seek Venture Capital & Funding - Hello, Greetings from India. I am Seeking Venture Capital for Offshore Software Company Start-up. Need advise along with Business Model Sample. I have a basic outline for an offshore company. 1. Technology - like Microsoft Dot Net, Java, LAMP 2. Talent Team - Found Good Technology Developers. 3. Where I can get the leads/potential customers - Leads have been identified who are willing to move forward offshore projects. 4. I do not have resources like funding. It is a very critical factor to me Industries: Manufacturing, Real Estate, Retail, Insurance, Distribution & Logistics, Healthcare, Industry Associations and Software Product Development, Agricultural Industries and Etc. Services: Offshore Software Development Company. Offices to be located: Hyderabad, Andhra Pradesh, India and USA. Products/Services/Applications in areas like POS & Billing, Sales & Distribution, Production Planning, Material Management, Inventory Control, Plant Maintenance, Purchasing, Accounting and Logistics. Dynamic Web Programming with Database Driven Content Management Systems, Online Stores for E-Commerce, B2B Solutions, Community Portals, Website Redesign and Development, Custom ERP with Enterprise Wide Functional Modules such as Marketing, CRM, Accounting, Inventory Control, Sales & Distribution, Production Planning, Purchase & Stores, Logistics and Supply Chain. Seek your further questions and help. Thank you, Best Regards, Jayapratap.
2007 Goals - My yearly goals for December 2007: 1. Add 10-15 new "ideal" clients to our client roster 2. Increase revenues by $500,000 3. Average at least 1 paid speaking engagement per month.
Increase Productivity and Profits on the Web - A Web site is a great way to better service and market to current customers, but often a difficult way to attract new ones." Increase Productivity and Profits on the Web New! Don’t let the savings and productivity enhancements described in the following pages make you rush out and spend thousands of dollars overnight to have someone set you up with your own Web server, hosted Web site, or intranet.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Local Marketing: 3 Simple Low-Cost Strategies

How to Set Sales Goals that Work

Smart & Simple Internet Techniques

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.