What is product bundling?
Putting together a bundle of goods or services and selling them at a discount is called “product bundling.” The goal is to get people to buy more than they would if they were only thinking about buying one thing.
The following are some of the perks of bundling products:
- It helps bring in more money because buyers are more likely to buy when they think they’re getting a good deal.
- Bundling older or less popular items with more popular ones can help eliminate the stock of those items.
- Making people feel rushed can make them more likely to buy before the deal ends.
Customers will be more likely to stick with a brand if they get more for their money.
Businesses can make configurable, customizable sets of things that give customers more value by bundling them. Bundling goods can help sales teams find new customers, sell more products, and sell products that go with other products. When a business bundles products automatically, it sets rules and logic to ensure the bundles work and make money for the company.
Product bundling, package deals, bulk discounts, packaged price, product pairing, and “buy one, get one” are all words that mean the same thing.
How to Get the Best Deals by Bundling Products
When you bundle products, you can get a better deal. With this pricing approach, you can make your deals more valuable without raising prices. You can also make a more appealing and valuable package for your customers by combining goods or services that go well together.
When you bundle items, here are some things to remember:
- Make sure that the items go well with each other. They should be sold together for a reason that makes sense.
- Keep the price of the bundle low. People will be less likely to buy your deal if it costs too much.
- Let people bundle in different ways. Customers may only want a few things in the bundle, so let them buy just a few or make it their own.
- Don’t put too many items in one package. This can make the package look too big and complex to understand for buyers.
- Make it clear how the bundle will help people. It should be simple for customers to understand how the goods add value when used together.
- Lower the bundle’s price to make the deal more appealing to your customers.
If you use these tips, you can put together sets of products that will help you make more sales and get more significant deals.
Typical Mistakes When Bundling Items
Customers can save time and money by grouping products, but sometimes the process can go wrong.
When you bundle products, a few things could go wrong. Products that don’t go together are a regular mistake. Customers can get confused and angry when goods that don’t work with each other or can’t be used together are put in the same box. Overselling is another mistake that can happen. This happens when customers buy more goods in a bundle than they need and spend too much money on things they don’t need.
Finally, secret costs can happen when a customer doesn’t know all the bundle costs. The customer might pay more than they planned because of this. Bundling products together can be a great way to save customers time and money. But it’s essential to be aware of mistakes that might happen. Customers can get angry and stop buying if you sell the wrong things, charge too much, or hide costs.
Automate bundling products to cut down on mistakes.
Product bundling can take a lot of time and be hard to handle. As we already said, mistakes can happen. When you group products, one of the most complex parts is ensuring that the products you want to bundle are good for each other. When a product is put in a box the wrong way, it can cause many problems for the business.
First, a group of products that don’t work together will lose money because they can’t be sold, and the company may even lose credibility with the customer. People will lose faith in a business if they get a product they think is wrong or doesn’t make sense.
Customers are less likely to make mistakes when they bundle products. Customers are often under a lot of stress about making the best choice when they buy something. Customers can make bad decisions that lower the value of their purchases if given many choices, options, and packages.
It will always take longer and require more resources for salespeople to make custom gifts for each customer. When you bundle products, you make more deals and give the customer a better experience. A recent Forbes story said that customers like experiences that are more tailored to them. By bundling, you can make a more tailored product for the customer, which makes them happier.
The best way to cut down on mistakes and make sure your customers order the correct goods is to automate product bundling. You should think about some things if you want to automate the process of grouping products. You must first choose which items you wish to bundle. Second, figure out how you’re going to simplify the process. There is software that can use AI and customer data to help buyers choose the best product bundles. One great example of a tool that can help your sales reps choose the correct goods and bundles during the quote and order process is CPQ software.
Types of Product Bundles and Some Examples
In most fields, you can find goods bundling. The most popular kinds are 1—bundles of physical goods.
- Bundles of digital products
- Product packages that you can subscribe to
- Product packages based on service
- Customized sets of products
Bundles of physical goods
Most of the time, product packages come in the form of physical items. They do put two or more real items together and sell them as a single unit. A business might pack a camera with a stand or a printer with paper, among other things.
Digital bundles of products
As more goods go digital, digital product bundles are becoming increasingly popular. Digital product bundles are when a business sells two or more digital goods as a single unit. A business might sell a video game, an approved product key, software, and an instruction manual.
Product bundles that you can subscribe to
Companies that use subscription-based models are moving more and more toward product packages that are based on subscriptions. Businesses group two or more items and sell them as a single unit. A business might offer a phone and a service plan together or a TV and a streaming service.
Bundles of service-based goods
Companies that use service-based models are increasingly moving toward service-based product packages. Businesses combine two or more services into a service-based product bundle and sell it as a single unit. A business might offer a package that includes web hosting and domain name registration, an online storage service, and a file-sharing service.
Customized groups of products
Companies are moving toward customization, meaning customized product bundles are becoming more common. Businesses assemble groups of two or more items and sell them as units. Customers pick which items they want in the group.
What Product Bundling Can’t Do
Although bundling products can be an excellent way to get people to buy more and increase sales, there are some problems that companies should be aware of.
Finding the right mix of goods to bundle together can be challenging.
People might not always need or want all the items in a set. What if they feel like they spent money on things they didn’t need? This could make them not like the deal as much. So, it’s essential to carefully pick the things to bundle based on how the product is used and information about the customer. For instance, if people often buy two items together, you might want to think about selling them together.
Bundling can make it harder for customers to choose
Some customers may like mixing and matching goods to find the best mix. Bundling, on the other hand, takes away this freedom and option for customers.
It might be tough to add or change items in a pack after it’s been made.
When you make a product bundle, adding or changing goods can be challenging without affecting the whole bundle. This can make it hard to adapt to the needs and wants of customers as they change.
It can be hard to sell product sets.
It might be hard for businesses to promote product packages because they must be clear about the bundle and why it’s a good deal.
Bundling can make things more difficult to handle
Too many product bundles can make it hard for a business to keep track of its stock and complete orders, making customers unhappy and leading to bad reviews.
Some customers may want to buy goods one at a time
Some customers might like having the freedom and options to buy single items instead of being stuck with a bundle. They might pick a rival over a business that bundles products.
Figure out your CPQ plan for product bundling.
Some problems that come with using a product bundling approach can be fixed using CPQ (configure price quote software). Customized sales quotes based on the buyer’s wants and needs are valuable to many businesses because they help the company make more money and grow. To ensure that customers get accurate quotes on product options and prices, many sales teams use CPQ to make accurate quotes quickly.
Adding product bundling to routines can be challenging without the proper sales process automation without the proper sales process automation. When you add product bundling to your CPQ strategy, your sales team can assemble more valuable, custom packages of goods for each customer. In a CPQ approach, bundling products leads to more extensive and frequent deals because sales reps have more chances to cross-sell and up-sell.
