5 Bundling Tips for Your Business

Bountiful Bundles

Bundling is ubiquitous. You encounter bundling every time you go shopping, whether it’s a combo meal at a fast food restaurant or a two-for-one deal at the mall. Some bundles are so engrained into the product itself that we don’t even notice them. Can you even imagine a world where Microsoft Office doesn’t come with every Microsoft OS? Of course not. They’re barely thought of as separate products at this point, but they are. They’ve simply been bundled together. In all, bundling is a marketing strategy in which several products are sold as one unit.

Bundle Because…? en-INTL-L-Prod-Mod-Surface-Pro-3-Bundle-mnco-1

According to Forbes, Sales can soar when companies bundle products together into one cheaper package. Customers get more bang for their buck, allowing themselves to try out new products while making their initial intended purchase. On the other side, businesses can lower marketing and acquisition costs.

Shopping is just as much a psychological act as it a physical one, causing pain as well as pleasure. Bundling helps reduce the “pain” a customer can experience when making multiple purchases. Instead of suffering through five different ca-chings of the cash register, they only have to go through through one, even if they’re spending just as much money.

Bundling Basics

Bundling looks as simple as packaging two products together as a single item, but it’s actually a bit more complicated. Here are a few do’s and don’ts when it comes to bundling:

DON’T: Lie to your customers.

In our world of increasing transparency, people want to know the truth about what they’re buying. If they do the math and figure out that your bundle costs more than the sum of its parts, you’ll lose business and earn a reputation that will not be easy to shake.

DO: Include at least one ‘anchor’ item.

This is the item the customer wants regardless of the bundle. The others are extra to sweeten the deal.

DO: Consider the packaging.

How will the items fit together physically? Will they need to be shipped separately? Consider this as you decide what items to bundle.

DON’T: Bundle unrelated items.

A handful of random items thrown together doesn’t look like a deal to a customer. They look like something the store wants to get rid of.

DO: Allow each item to be bought individually.

This is called “mixed bundling.” In a study of Nintendo bundles at Carnegie Mellon University, Nintendo sold loads of bundles when customers had the option of buying the items individually. When the bundle was the only choice? Sales sank like the titanic.

Now go forth, businesses! Go ahead and bundle your products up like it’s winter in Minnesota, and watch your profits soar.Screen Shot 2015-11-23 at 2.25.01 PM

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