If you enjoy shopping in marketplaces or online stores, you’re likely familiar with promotions that combine two different products for one price. These marketing techniques are commonly referred to as “save packages,” “package deals,” or bundling, meaning a combination of products.
As a marketing method, bundling aims to attract potential customers which leads to increased product sales.
Melalui teknik ini, pelanggan dapat membeli lebih banyak produk dengan harga yang bisa dikatakan lebih terjangkau daripada dijual terpisah.
What is Bundling?
The word “bundling” comes from English and means “to combine.” When applied to business, particularly marketing, it is defined as a strategy of combining two or more products into one package.
Typically, these bundled products still fall under the same Stock Keeping Unit (SKU). Bundling is a popular marketing strategy for fast food restaurants, marketplaces, hotels, and beauty businesses.
It could be said that bundling is a fairly effective promotional strategy for boosting sales. This is because consumers can get two products, often related to the same need, at a lower price.
Furthermore, consumers can potentially benefit from trying new products from a brand with a lower risk than if they were purchased separately. This is because this promotional technique often combines the most popular products with those that are selling less well.
This method also allows companies to profit by selling products and preventing inventory buildup. Furthermore, costs can be reduced by eliminating the need for self-promotion. This is why companies also consider product pricing to maintain profitability.
Purpose and Benefits of Bundling
Bundling aims to boost product sales and thus increase business profits. This strategy involves categorizing new or slow-selling products with similar, high-demand products, thereby increasing sales.
This way, customers prefer to purchase two or more products at once because the price is arguably more affordable. Meanwhile, bundling offers the following benefits.
1. Increase the number of orders
Bundling means selling two or more products at a more affordable price. This means that if the bundled products sell well, the company’s order volume will also increase.
2. Sales figures increase
Still related to the first benefit, increasing order value will also indirectly help increase product sales.
As a result, the company can also get more profits.
3. Reduce marketing operational costs
When a company sells several products at once at one price, this will certainly help reduce operational costs for marketing, including costs for promotion, storage, and product distribution.
This is because goods sold using the bundling method tend to have lower operational costs compared to selling individual products.
4. Reduce the accumulation of stock of goods
The benefit of bundling also helps reduce the accumulation of unsold stock in the warehouse.
By combining the product with other, more popular products, customers will perceive the offer as more affordable and will want to purchase it.
Bundling Types
You may only know that bundling means selling products by combining them. However, there are several types of bundling used as promotional tools to increase sales, including:
1. Pure bundling
The first is pure bundling, which means customers can only purchase products according to the existing package.
Simply put, the products are not sold separately so customers have to purchase the package to get the desired product.
2. Mix and match bundling
Next, mix and match bundling gives customers the freedom to purchase other products.
Contohnya, pelanggan yang membeli burger bisa memilih paket bundling dengan minuman, kentang, atau ayam pada satu paket dengan harga yang lebih terjangkau.
3. New product bundle
This type of bundling is often the choice for companies that want to launch new products so that they become known to potential customers more quickly.
These new products are typically placed alongside best-selling products so potential customers can recognize them and avoid having to purchase them individually. Until finally, the new products are ready to be sold separately.
4. Cross-sell bundling
This bundling method can be applied by adding complementary products along with the main product.
Of course, at a more affordable price than having to buy them individually and separately.
5. But one get one bundling
Buy one get one, or B1G1, is a highly popular bundling method. This allows customers to obtain additional products simply by purchasing the main product, either at a discount or for free. This type of bundling is often used for everyday necessities like soap, tissues, and more.
6. Gifting bundling
At certain times, businesses will sometimes offer gifting bundles to consumers. Generally, this type of offer aims to attract customers. A simple example is buying one popular product and getting a free tester for another product.
7. Inventory clearance bundle
Finally, inventory clearance bundles are a type of bundling used to reduce the number of slow-moving products so they don’t pile up in the warehouse. Typically, this method involves combining these products with other fast-selling products at a significantly lower price than the normal price.
So, bundling means combining two or more products and selling them at a lower price than the regular price to attract consumers. Besides considering promotional strategies, you also need to ensure business operations run smoothly.
To make things easier, use the Labamu app. This app’s features will help you optimize your business operations, from POS cashier management, raw material management, to QR menus to make it easier for customers to recognize your business. Let’s use Labamu!
