- Business and Employment
Bundling Products Together, Create Deals Like KFC, More Sales?
What is a major horrible issue that most companies face?
They just don't earn the amount of money they aim for, that they want to achieve, but miserably fail, therefore many marketing experts have been brainstorming innovative pricing strategies to capture more orders, most do not survive for long, however the bundling strategy is an exception.
You can probably guess what the trick is all about, bundling, yes, bunching things together and get customers buy it, and obviously, the cost is going to be higher than its individual prices of each item, and you expect more sales?
Value bundling is...?
The concept is really combining several products together and create a deal, so like, selling three products at the same time, example? Like meal combos you see in almost any fast food restaurants: McDonalds, KFC, Burger King...etc
The psychological impact behind this bundling trick often cause consumers to perceive the value of a particular deal to be extremely worthy, since they compare the price of the combo with the sum of the prices of each individual item from that combo.
If you are a little confused at the strategy here, listed here are three fundamental procedures of what the marketers do:
#1) Group multiple goods together and create a deal
#2) Purposely increase the price for each individual item from the deal
#3) Explain the benefits to customers why the deal is excellent
See! It's as simple as 1-2-3, a further explanation:
Bundling – The biggest advantage of using deals is that a consumer will not be able to choose what is included in the deal, plus, people are more likely to buy your deals since “deals” are meant to have a discount of some sort. Your profits are very promising.
Perception – You can easily exaggerate the savings of your deals by deliberately raising the prices of each item from the deal if they insist on buying them individually, so it basically forces your customers to choose the deal instead.
Persuasion – Last but not least, not everyone is a wise consumer that picks up all advantages of product combos, having said that, it is suggested that you list out the positive reasons why your deal is great and how it can benefit them.
Take note the bundling strategy is industry-specific, you should never use it in the cases of selling high-end products like: perfumes, jewelry, automobiles...etc
You must maintain your prices up high untouched, this is due to prestige pricing.
Reason? Because sending away discounts will mess up your brand's reputation, trustworthiness and people think your products might not actually be that good since you are rushing your sales.
Struggling To Get More Sales?
Did you know that using human psychology can increase sales up to a shocking 45%? Learn how you can do the opposite of bundling to raise your sales! -- the perception of unbundling.
If you are indeed a business owner who sets prices...
Did you know that pricing is the biggest mistake most companies make?
In fact, you are leaving loads of cash on the table every year, thousands if not millions of pure revenue!