Bundle Pricing: A Complete Guide with Strategies, Examples & Benefits
Bundle pricing is a popular pricing method for online shopping. In this practice, a set of multiple associate products are set together and charge one flat price for all the bundled items that stimulate buyers. Usually, eCommerce brands and online retailers use this strategy to promote more business sales. Also, this strategy helps you to grow revenues while standing out among competitors.
Through a product bundle pricing strategy, you can connect with more customers and take your business profits to the next level. Still, confused about bundle pricing? Let’s discuss everything you need to know about bundle pricing, its benefits, examples, strategies, and more. A better understanding of this strategy helps businesses to implement it accurately to generate more profits.
Table of Contents
- What is Bundle Pricing?
- Popular Types of Bundle Pricing
- 1. Pure Bundling
- 2. Mixed Building
- Bundle Pricing Examples
- Who can use Bundle Pricing?
- Bundle Pricing Advantages for Businesses
- Final Verdict
What is Bundle Pricing?
Bundle pricing is an emerging eCommerce and retailing strategy in which the companies make a bundle of multiple products or services and sell them at a single rate.
Usually, all the products in a set are associated with one another. These bundles have a great attraction and value for the customers. They can take advantage by receiving a set of products at one price.
Besides, the brands offering such bundles encounter a significant boost in sales and revenues. So basically, it is a win-win strategy both for sellers and buyers. Businesses can also use this strategy for their services. Product bundle pricing brings significant benefits for businesses as it generates more product value as a whole. However, it helps to captivate the customer’s attention at a significant level.
Popular Types of Bundle Pricing
No matter if you are an ecommerce brand or store retailer, the price bundling strategy is incredible. From the food items to cosmetics, grocery to electronics, and all other items, all the businesses use them to expand sales. The right pricing bundle strategies work as an effective marketing tool to improve your customers’ order value and boost revenues. Customers prefer to buy them to get more products and save money. There are some top bundle pricing types that retailers use as per their specific business needs and concerns.
1. Pure Bundling
Pure bundling refers to a strategy in which the businesses sell items in a bundle instead of individually, The customers may not be able to find a particular item as it only comes with a bundle. Hence, the customer must buy the whole set for the sake of that one product. The pure bundling strategy brings significant benefits for a company as it encourages customers to purchase the complete bundle instead of a single item. The pure bundling has sub-categories also that are as follows!
Leader bundling includes the bundling of primary products with the less valuable products. This means that low-selling retail products are paired with leader products that allow companies to easily sell all their products. In such bundles, the high-value stuff influences customers to buy the whole package at a single rate.
Joint bundling is a type of bundling in which you sell more than one item together that is not available to buy individually. If customers like one thing in a bundle, they have to purchase the whole set of products. The best example of joint bundling is Microsoft 365 in which you cannot only buy excel, word, or SharePoint. You have to buy the whole office 365 containing multiple programs.
Same as leader bundling, mix-leader bundling includes one high-value product along with non-leader items. However, mix-leader bundling lets customers purchase any individual item from the bundle, unlike leader bundling. The customers have the opportunity to purchase the whole set or the high-value item particularly.
2. Mixed Building
Mixed bundling is also a beneficial strategy for businesses to encounter more benefits. In this type of , the retailers give customers a choice to buy individual items or a bundle of products. However, you can convince customers to buy a bundle by offering it at attractive rates as compared to the total price of each item.
In other words, you can sell the bundle by offering a discount on certain products. We can take the example of any meal offered by a restaurant. You can purchase the fries, burger, and soft drink individually or buy a deal containing all these items at a discounted price.
Bundle Pricing Examples
The price bundling comes with a lot of business benefits both for retailers and eCommerce brands. Hence, the bundles are popular in all industries especially in discount stores as well as in luxury stores. The brands and retailers also adopt the bundle pricing strategy on special occasions such as Christmas, takeaway, and more.
Bundles have a great value and popularity among eCommerce brands and platforms such as Amazon. On Amazon, the retailers are selling multiple product bundles at attractive rates. However, the bundles are available in two types on Amazon that include seller-created bundles and marketplace-suggested bundles. However, the common bundle pricing examples are as follows!
- A camera with various accessories such as a memory card, lenses, flash devices, and camera straps.
- A mobile phone with a data plan
- A burger with fries, soft drink, and fried chicken
- Software with some related programs and features
- An eye-shadow palette with brushes and blush-on
- Shampoo with conditioner and soap
Who can use Bundle Pricing?
Almost all businesses and industries are adopting the product price bundling practice to grow sales and revenues. This strategy is mostly used by the following industries!
- Ecommerce brands
- Discount stores
- Software & Internet companies
- Networking companies
- Retail Stores
Bundle Pricing Advantages for Businesses
The pricing bundle strategy comes with a lot of benefits for businesses as well as customers. Through this, the retailers can overcome the problem of getting potential buyers for their diverse services and products. Moreover, this helps to increase order values by combining leader and non-leader items. You can also increase customer engagement and involvement in your products. The following are the top product-bundle pricing benefits that can take your business to the next level.
Grow Sales & Revenues
Product bundling is an effective way to capture the attention of potential buyers. You can make various types of bundles by adding high-value as well as low-value products in them. However, customers find it more convenient to buy the related products in a single bundle at an attractive price instead of purchasing all individually. This way, the retailers can sell both the leader and non-leader products that significantly increase your business sales and profits.
Introduce New Products
Do you want to introduce new products to the market? Well, there is no better way than product bundling as it is a great marketing strategy. You can make a bundle of high-value products with a new item. This allows customers to buy the leading product and try the new items at the same time. Otherwise, people may not feel willing to try a new product. Both the eCommerce brands and store retailers can make people familiar with the new items you are launching.
Sell the extra or non-leader stock
Not every product can be a best-seller. Some may not perform well in a retail or ecommerce market. However, bundle pricing allows you to sell low-value products by combining them with high-value items. This is an effective strategy to boost up the sales of non-leader products. Also, you can use product bundling to sell the extra retail stuff by pairing them with multiple high-value items.
Simplify Purchasing Experience
Bundling makes the buying process and experience quite simple for customers. In a product bundling, the retailers combine the related items and sell them at a single rate. However, people do not need to find all the items individually as they get them in a bundle form made by the retailers. This is beneficial both for the businesses and customers.
If your one product is a center of attention, why not add more to it? With the help of product bundle pricing, you can make a strong customer base by attracting them on a significant level. Customers find it convenient and beneficial to get their required items in a bundle form along with some extra products that they want to try. Through bundling, you can attract new buyers that add more to your business profits and revenues.
Product bundle pricing strategy is highly effective for all businesses to delight customers and increase profit margins. You just need to create bundles according to your customer’s needs to achieve business goals. This way, you can sell both the leader and non-leader products that potentially impact sales.