No matter if you are a novice in the eCommerce game or an expert, there is no doubt you are familiar with the splendors of bundle pricing. From McDonald’s Happy Meal option to a 2-for-1 deal of your favorite shampoo at Walgreens. Businesses around the world use it all the time and customer’s love it.
With the right bundle pricing strategies, you can use this as a marketing tool that can benefit everyone involved. Customers are getting a deal, your store is receiving business, and the consumer may be encouraged to return to this one source for a multitude of needs. In order to fully understand how bundle pricing can achieve all of that, let’s take a deeper look at the advantages that come with it.
Exploring The Advantages
1. Bundle pricing will guarantee a speedier delivery, compared to the normal time it would take for the amount of items included in the order. Since everything is already packaged together, less time is taken to retrieve all of the items separately and package them accordingly
2. Bundle pricing technique often results in repeat purchases of at least one of the items included in the bundle. The bundle gives customers a chance to sample new items related to those they love, and if they like the ones they will continue to buy those as well.
3. Having special offers gives you something to advertise. Being able to promote deals in your ads will attract positive attention and bring in people who are mostly just concerned about price.
4. Bundle pricing will bring in new customers. As the special offer may attract people who haven’t bought from you before, they will often be interested to explore what else you have to offer and may even tell their friends about the great deal they got. People tend to trust their friends and will want to get in on the deal as well.
5. Using bundle pricing strategy will keep your profit system fresh and unique. Because of this, competitors will find it difficult to keep track of how you’re managing success and keep up with your pricing system.
How to Apply Bundle Pricing
Depending on your product, you will want to consider what will be the most beneficial way to bundle things together. There are a few different techniques you can use.
6. Pure Bundling: when a group of items are bundled together and cannot be purchased separately. Television companies use pure bundling when they form their packages to offer to consumers. People cannot pick and choose whatever channel they want, they have to pick from the packages the company provides to them.
7. Mixed Bundling: when a group of items are available for purchase as a bundle, but here the option also exists to get any of these items on their own. This may seem less beneficial for you if the customer walks away with only one item, in turn spending less money. Yet, the customer may not have bought anything at all if they didn’t have the option to buy the one item they wanted.
8. Cross Company Bundling: when items from different companies are bundled together into one group. If one item compliments another, the customer will be glad to learn of a new product related to the one they consistently buy.
9. Premium Bundling: when a group of items are bundled together, and the price offered is actually higher than the individual prices put together. This is often done by the use of coupons or a marketing strategy that is implemented based on a special event (for example a holiday or football game).
10. New or Unpopular Product Bundling: when popular items are bundled together with unpopular or new items. Usually, this is done when a popular company’s item has a quality that may complement a new or unnoticed item. Doing so will attract customers to things they may not have bought on their own, but ultimately they will end up happy to be walking away with their purchase.
Though the customers may not realize what you are doing, they end up feeling as though the business has helped them find what they were looking for. Not only that, but they’re getting it all for good price. If you aren’t using bundle pricing currently, it is a great strategy to consider and cannot hurt to try. Always keep the customer in mind when arranging your bundles and keep focus on providing a value that is beneficial for the both of you.[tac_ga url=”http://info.intelligencenode.com/a-comprehensive-guide-to-competitive-online-retail-pricing-strategies” category=”Ebook Download” action=”Click” label=”Pricing Guide” target=”_blank”]