People who are used to buying groceries always look for bundles where she can have two or more items in one price. They are always available in supermarkets especially during a sale or on holidays.
Products sold in a bundle are packed in a basket or in some nice plastic bags. Their price as a whole are usually very low compared with each product’s regular price in solos. Some feel lucky when they’re able to get a bundle of ingredients for making a spaghetti or of a whole set of toiletries composed of a toothpaste, shampoo, body soap, and some more.
Saving a few pennies from the groceries is already a big blessing. Product bundling is truly an amazing buy both for the customer and the seller. How? Read on to learn more!
Product Bundling Defined
Among the many marketing strategies that originated before and remains until now is the so-called product bundling. Who does not know about this? We all go to the groceries and see those bags of various stuff like one basket has a glass of wine, a pair of shot glasses, and an ice bucket that makes a complete pack for a drink with your partner or friend.
By definition, product bundling is the technique used in marketing more than just one item. Two or more items of different brands and sizes are packed together to create a complete package all for one price only. It’s practical for some but it’s tricky for others. Do you know why? Well, just see it for yourself when you go on your grocery next time!
Advantages of Product Bundling
Aside from the lower price that you must pay, product bundles are known to bring many more wonderful benefits to shoppers. One of those is that those bundles don’t make you decide on which should be taken and which should not. Unless, you want to ask a sales clerk to open a package for you and pick only those that you need. That’s unreasonable!
Some of the common advantages that product bundles have are the following:
1. Speed up inventory clearance. Inventory turnover allows businesses to identify which items are not selling much compared with the others that are sold regularly. When you match a popular item with a less popular one, creating a new reasonable and attractive price for them would be fine. Customers are likely to want to buy the bundle.
2. No pressure decision-making. The fun of having many choices makes shopping a little bit more difficult sometimes. Too many things in mind that needs to be purchased make the search very confusing. With product bundles available, customers have less to think of and consider for their next grocery shopping.
3. Enhances confidence among customers .Customers feel they are a part of the bundling especially if the items they find in one package are what they need. This is likely to result in a purchase that can boost sales. Return business rates may also be enhanced, knowing that customers found a company that understands their needs and wants.
4. Boosts sales and revenue.Product bundling can increase the sales and revenue of your business by increasing the original amount spent by a customer. Likewise, customers find it okay to spend more on things that they need.
5. Improves customer experience. Bundles that allow customers to pick which items they want to go together make people feel good because they needed less time for shopping and walking around. Some bundles even let customers to add or delete items for a more convenient experience while shopping.
6. Allows customer to understand product better. Before making the decision, customers have to review the product, its contents, and uses. By doing that, customers can have a better understanding of a product especially the one that they need to purchase.
Common Types of Product Bundles
- New product bundles. Yes, this is a popular form of bundling. For example, your bestseller coffee crumble ice cream matched with your new flavor which is the mango graham ice cream. Put them together for a certain amount, the bestseller lifts up the appeal of the newbie so you get a blockbuster even on day one.
- Gifting bundles. This sounds such an economical, budget-friendly offer. On Christmas day, you have your entire community in the office, in your basketball team, and of course, in your family to give gifts to. How could you manage without that bundle of gifts to separate afterwards or keep that way for the very special people in your life? That’s a really cool!
- Pure bundles. If you are looking for just one product that you want to be in a bundle, pure bundles are what you need. This type of bundle which includes just one type of product but comes in different flavors, shade, or size. For instance, you offer 3 medium size shirts of different colors in a package or two bags, one small and one medium sized.
- Cross-sell bundle. A customer buying a new cellphone from your shop may be interested to buy a new headset or new housing for his phone. Make that into a bundle and her/she will absolutely be hooked and purchase the bundle.
- Mix-and-match bundles.Bundles that customers get to choose or match are examples of this. This works effectively because of the thought that you are given the freedom to choose whichever products you’d like to have in the bundle.
- Inventory clearance bundles. This usually happens in the middle or at the end of the year wherein all goods that haven’t been bought must be disposed of and just get the capital from the sales. You can offer a shoes together with free two pairs of original socks at a certain price.
- Buy-one-get-one bundles. This probably is the most popular type of bundle in the world. We always want the best item and if it’s really nice, we may be encouraged to buy another one which is on sale, too.
When Does Product Bundling Work Well?
- On a holiday season – it’s just hard to say ‘no’ during a holiday especially on Christmas Day and on your birthday. Giving gifts is always a tradition that cannot be broken during holidays which signal a sure profit for shops including those that are in bundles.
- On paydays – with the money you have in your hands, no matter how much it is, people tend to be easily enticed to spend some for things that they don’t really need at the moment. Offering bundled products to customers is definitely a sure win in this type of promo.
- At closing time – bundle offers work best also when the store is about to close. We know that stores also have a quota to beat each day so as much as possible, they need to sell as many products as needed. Best examples of product bundles at this time are foods and snacks.
Bottomline
Product bundling is such a very effective method in marketing that every shop both online and physical shops should try. It’s a win/win for both parties while also promoting your shop. This 2022 when a lot of things have happened that caused our economies to fluctuate 3 years, it’s very important to cut the budget short and buy only those that are really necessary. Yet, with product bundling, you can have both.
