Price bundling is a proven strategy to not only simplify the buying process but also to boost sales and enhance customer satisfaction.
In this episode, our expert panel uncovers the multiple benefits of price bundling, including increased sales, improved performance of lower volume products, and driving the adoption of new offerings. Learn how to effectively implement bundling strategies in your business to maximize profits and keep your customers happy. With practical tips and real-life examples, this episode will help you unlock the full potential of price bundling. Don't miss this essential guide to mastering the art of bundling for success!
Welcome to 20 days of pricing tips—part 7. I’m Nika, a member of the pricing team and I’ve worked on 42 pricing projects. Today we're breaking down price bundling.
Do you have multiple standalone products that you charge individual price points for that are all generally applicable for the same target market? If so, you might want to consider the benefits of a bundling strategy. There are three types of bundling strategies:
Joint Bundling - Offering two or more products together for a single price. These products can only be obtained through a single purchase (Ex - G-Suite as you can't purchase just Google Sheets as a standalone product).
Leader Bundling - Offering two or more products together for a single price, but one of the products is inherently more valuable and is, therefore, the leader product.
and Mixed Bundling - Not as strict as pure bundling, and enables customers to choose between purchasing products individually (at a higher price) or purchasing a bundle of products together at a lower price.
The key benefits of a bundling strategy are
1) That it simplifies the buying process
2) can increase sales and usage
3) can help improve the performance of lower volume products and boost customer engagement
4) Helps provide more value for customers and
5) can be used as a way to drive the adoption of a new product/offering within your suite.
Thanks for checking out our pricing tips. If you want to connect with our pricing team email Patrick@profitwell.com and we’ll send over the intro.