7 Product Bundling Strategies to Maximize Profit
Product bundling is a marketing strategy in which a number of products are bundled together and offered for sale as a single item. Customers may find it incredibly appealing when you can bundle all of your distinct goods’ value into a single offer. This tactic is employed to persuade clients to purchase more goods.
Put Complimentary Products Together
When you combine things that are frequently purchased together, bundles perform well. Simply imagine yourself as the customer and consider the things you are most likely to purchase simultaneously.
In that case, you could wish to create bundles that include extra straps and locks if you plan to sell your handcrafted backpacks online. Accessories and spare parts are far more likely to be purchased by customers if they are complementary to one another.
This kind of bundling is an excellent strategy to increase sales during holiday seasons like Christmas, Chinese New Year, and Hari Raya. Use this tactic to attract customers who are looking for a group of related goods that would make thoughtful gifts for friends, family, or loved ones. Gift packages are typically intended for customers looking for a collection of related goods that would make ideal gifts for friends, family, or other loved ones.
Beauty stores like Sephora sell gift packages dubbed “holiday vibes” that contain a variety of complementary skincare and cosmetic goods. These packages may contain some seasonal “specials” that are only offered during that particular holiday. A successful strategy to increase sales over the holiday season is to create bundles.
Buy One, Get One Free (BOGOF)
The BOGOF (buy one, get one free or at half price) marketing tactic is often referred to as half-price bundling. To get rid of your inventory, give your consumers free or heavily reduced goods. Combining in-demand items with slow-moving ones is another technique to offer free or discounted goods.
How can you create a compelling bundle? When making a bundle, it’s crucial to pick things that go well together and may be purchased as a set. For instance, if you sell clothing, you could put together a bundle including a shirt, pair of pants, and pair of shoes. Another option is to put together a set of gloves, a scarf, and a cap. Consider what products your clients would like to buy in combination from your business as you get inventive with your product bundling.
A type of bundling known as pure bundling occurs when the goods or services that comprise the package are not offered individually. In other words, a pure bundle solely consists of the components that are offered together. One-time purchases and multipart sets, such as a curling iron with numerous detachable wands, are examples of products that are frequently sold in bundles and are hardly ever provided separately.
Pure bundling is frequently regarded as a beneficial marketing tactic that increases sales without raising marketing expenses. Because of this, pure bundles are important in the product bundling process.
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The mix-and-match bundling strategy is based on selling a number of products as a single unit for a single price. This method is frequently used in conventional brick-and-mortar stores for goods like perishables or large quantities of something.
By offering a variety of products to your clients, you can enable them to form their own unique bundles. This is known as mixed bundling. When you want to give customers the appearance that they have direct control over the products they buy, this tactic is especially helpful. This improves the bundle’s perceived value and improves your clients’ buying experiences.
Mix-and-match bundling works best when you entice clients to buy in quantity without giving them the impression that you’re pressuring them to buy odd goods they don’t need or want. For instance, popular goods like three of their standard normal fit jersey tops are regularly bundled by fast-fashion behemoths (like H&M).
Buy More, Pay-Less
Create a bundle containing multiples of that product in one package to raise your average order value. This gives your customer a better deal while also making it simple for them to meet their demand for your product. The pricing bundle is another name for this package.
The best illustration is food items. Given the high demand from clients for products in this category, you may give them a better value by grouping many of those products together and charging a higher price for the bundle. One pack of ramen noodles, for example, is “never” enough for the client. Instead of requesting that they purchase only one, consider bundling it into two sets.
Customers will find it simple and more affordable to get the product they require with this convenient pack. Additionally, you can design various promotions that let clients receive larger discounts the more merchandise they purchase.
Making a subscription bundle has two advantages: it increases client loyalty while also increasing sales. You can put together a subscription bundle of your most popular and in-demand products and let customers subscribe to it. Your clients can select the subscription frequency they want—weekly, monthly, bimonthly, etc. This enables them to receive their preferred products without placing an order, just when they need them.
When you bundle multiple products together, it makes them more appealing and increases the likelihood that customers will buy. So, it’s important to use product bundling in your marketing because it helps you sell more products. It’s a way for customers to see your products in a different light and hopefully, spend more in the process.