Bundling For Success

Whether you’re just starting out or have been at it for a while, it is always good to remember the power and potential of a good partnership. Bundling with a partner, or even a competitor, is a strategy that allows for mutual benefit without sacrificing autonomy. It is also a strategy that can increase your sales, outshine your competition and boost your brand profile, among other things. Here are a few tips for reaping full advantage of your bundling efforts: 

Complement Each Other

In the consumer’s eyes, the whole point of bundling is to make it easier and cheaper to get the products you need. Why buy shoes and socks at a higher individual price when this bundle offers them together for less? Certain industries are complementary, so seek out those who improve the market value of your product. Some examples of cross industry alliances are:

• Jewelry and clothing (bracelets and matching scarf, cufflinks and a dress shirt)
• Clothing and services (Personalized style consult and apparel separates)
• Sportswear and sports equipment (tennis rackets and tennis shoes, baseball cleats and a baseball glove, etc.)
• Games and hardware components (video games and consoles, or controllers)
• Electronics and peripherals (Blu-ray movies and a player, printer and ink)
• Complementary coaching services (branding consult paired with a marketing strategy session)
• Business service pairings (legal services and accounting services bundled as a Starter Pack for Small Business)
• Food service and cosmetology ("ladies night out" events pairing makeovers with catered hors d'oeuvres)

There are endless possibilities, you just need to find the right partner--one whose products complement your line without too much overlap. You don’t help anyone out if the bundle is too similar or too different. 

Undersell the Competition

While you may not be able to afford a drastic price drop on your own, sharing the hit with a partner can make it much more feasible. If possible, align yourself with your strongest competitor and undercut the second strongest. It will be much easier to start big and work backward than the other way round. This strategy has the added advantage of making your pricing more difficult to track for a competitor. 

Give Life to a Dead Product

A bundle is a great chance to inject some value to an underperforming product or service by attaching it to something that makes it more appealing. Whittle down your surplus of hard to sell bracelets by throwing them in with every necklace purchase. Bundle outdoor toys with your partner’s sandbox sales. Even at a reduced price, they’ll make you more money than they will sitting in boxes.

Give Your Business a Boost

Bundling is more than just selling products together; it’s teamwork that builds your professional relationships. Consider selling advertising space to a site that you bundle with to strengthen the relationship. If you are just starting out, finding a partner to bundle with can elevate your status by placing you where an entire market can see you. It's branding and product marketing in the same breath, and depending on your success, it might get you off and running on your own before you know it.Another way that bundling can give you a boost is to diversify your product line without adding anything new, while leading customers to purchase more. Try bundling your own products or services together to create package deals. This sort of packaging is an effective sales tactic, especially for shoppers new to your industry or those purchasing gifts.Bundling works on the same principles as volume discounts. Consider, for instance, the two-for-one deal; consumers will often buy more than what they need in order to score a discount. The same idea comes into play here. When an already overwhelmed mom-to-be stumbles across a "Baby's First Year" subscription package, where all the essentials are delivered to her home monthly, she may opt for convenience and a volume discount, even if she wouldn't necessarily purchase all of those same products a la carte. 

Make Money by Saving Time

Bundles require less time and effort to prepare for shipping and delivery. Employees make less trips to the warehouse, and customers require less help in the store. These small bumps to your overall productivity will reap benefits down the line.If you reduce the transaction processing time by 80% for a bundle of 5 products resulting in an hour of extra time, then by the end of a work week you might have the equivalent of an extra day's work for the same money. The actual benefits could be less or far greater depending on your sales volume, but then again, increasing your volume is one of the perks of bundling in the first place. 

Take Your Offline Online

If you are primarily an offline, traditional retailer, you might expand your reach by creating bundles with an online retailer. If they have a local base of operations, even better, but you can also factor in shipping costs into the price of the bundle, or even the split, and essentially give yourself an online storefront.Installing retail POS software (like Shopify) would give your customers in-store access to an online inventory, allowing them to potentially purchase online and pick up in person. Considering that the immediacy of in-person shopping is still giving physical retailers an edge, it could just end up a match made in heaven!Overall, there can be many benefits to bundling your product. Give it a try!

Let's hear from you. How can bundling benefit your business? Are their certain products or services that come to mind? Tell us in the comments!