_________________________ _________________________
| |||||||
Bundling Up by Mark Levit Not long ago an associate purchased a European vacation that included her flight, meals, hotel, and certain tourist attractions in one "all-inclusive" bundle. She had a great time and saved money. Using creative bundling strategies like this can increase your sales and create customer loyalty. Benefits of Bundling Bundling Psychology Bundling presents a psychological quandary for customers conscious of a balance
between price and value. The winning option will be the one that provides the best balance between price and value in your customers� minds. The Elements of "Value" These are important concepts to understand when bundling an offer. If you bundle your products or services properly,
you�ll be able to add more benefits at a lower unit price, dramatically increasing the perceived value of your bundle. Examples of Bundling Bundling with Partners For example, if you operate an engagement ring manufacturing company, you could bundle the services of a
national flower store chain and a travel consolidator to provide a "Total Wedding" program. The ring manufacturer sells the ring, flower chain designs the arrangements, and the travel consolidator arranges the honeymoon. Everyone benefits, resulting in additional sales and new customers. Suppose you operate an accounting firm and you find many of your clients not only have accounting issues, but also bookkeeping
and legal problems. Instead of making a simple referral to other professionals you could consider forming a joint venture and offering a "Business Diagnostic" service all three parties (accounting firm, bookkeeping service and law firm) sell to their clients. Developing a Bundled Offer Following are four common problems that customers of various businesses categories face and examples of possible "bundles" that might offered to solve the problem. Example 1 � Financial Services Bundle Offer – "Convenience Consolidation" Bundle Convenience Consolidation Silver Bundle Convenience Consolidation Silver Bundle
Convenience Consolidation Platinum Bundle Example 2 – Publishing Bundle Offer � �Motor Trend Car Club� Motor Trend Car Club Basic Bundle Motor Trend Car Club Enthusiast Bundle
Motor Trend Car Club Pro Bundle Example 3 � Managed Health Care Customer Problem � Employees limited to network physicians Bundle Offer – "For Your Health" For Your Health Starter Bundle For Your Health Super Bundle For Your Health Ultimate Bundle
Example 4 � Telephone Services Customer Problem � Telephone bills are unpredictable Bundle Offer – "Line One" Line One Value Special Line One Mega Value Special Bundling Principles Principle # 1 � Only offer bundled products or services that provide solutions to customers� problems. Principle # 2 – Each offer has unique offers that grow out of the lower priced bundle. Presenting customers with choices is the goal of bundling. Providing options with increasing value motivates customers to "up sell" themselves by selecting a more expensive option. Principle # 3 – The names of the different bundles denote increasing value like, silver, gold, platinum or starter, super, ultimate. Each subsequent name should communicate increased perceived value. Principle # 4 � You are able to aquire additional products or services added to the basic bundle at a low cost. Principle # 5 – You don’t have to have multiple products to create a bundle. Just add more of the same product. Opening Up to Bundling Options Find out more about how your company can benefit from
bundling. Contact our managing partner, Mark Levit, at 212.696.1200 for more information.
| |||||||