Tips for implementing a price bundling strategy

Why do price bundling

Price bundling strategies allow you to achieve better business results through the sale of more products on a single ticket through the creation of special offers for the purchase of a certain number of items, whether they’re the same or not. These strategies are sometimes supplemented with cross-selling actions since you can place identical products as well as related products in the same pack.

To do price bundling optimally, above all, you need to keep two factors in mind:

• The sales forecasts for the packs based on demand
• The profit margins for profitability

The main benefit of price bundling is the increase in the average ticket size per sale in exchange for the advantage the user receives by obtaining more product. However, this is also a good way to set yourself apart from the competition by selling exclusive sets or by simply getting rid of stock that you no longer want to have in your warehouses.

3 method to do price bundling

Price bundling can be done in different ways. You’ll have to adapt the changes in price and thus, the final benefit for your users based on the type of strategy you want to follow.

• Exclusive price bundling: strategies focused on selling products only as part of a pack. This forces users to select a higher-priced group of products, ensuring a higher average ticket. Tip: compare yourself with the competition so that users clearly see the monetary value of buying your pack compared with the other options on the market.
• Price bundling mix: products that can be purchased individually, as packs, or in bundles with different number of units. In this case, the user is directly shown the distinct purchase options based on the number of units in the pack. Tip: highlight the benefits each of the distinct packs offers in terms of percentage or monetary savings, or even with the value of a free unit. This has an impact on your customers!
• Optimise cross-selling offers: take direct advantage of this by making packs of related products that could be cheaper when bought together. This is a very common strategy in online stores when bundling accessories with items like cables. Tip: on the product sheet itself, show the pack option and the total savings it offers.

How to make price bundling packs for your catalogue

Selecting the best items for price bundling is what will make the difference in your catalogue. This is precisely where you’ll have to consider what the central needs of both your buyer and business are. 

Follow these steps:

• Select the central piece in your pack. It must be the one that really awakens the urge to buy.
• Check, through analysis, which related products are purchased most and least often by your users.
• Select your strategy. Do you want to sell more of the same unit thanks to an exclusive price or boost this assurance through the sale of a priori less-interesting items at a more attractive price?
• Calculate the applicable price. Set the acceptable margins for your business and get the optimal final prices thanks to your price management software.