“Would you like fries with that?” – A simple question that McDonald’s used to increase sales and scale it’s business worldwide. Product bundling has been a common strategy for businesses to drive more sales and profits. So, what is a product bundling strategy? It’s a marketing approach where multiple products are packaged together into one and sold as a bundled solution offering benefits to both sellers and buyers. Product bundling strategy is proven to significantly increase profits on sales and profits for sellers. Lower price points and convenience provide a better shopping experience for customers creating a win-win situation.
What Are The Benefits Of Product Bundling?
- Lead To More Sales And Profits – Product bundling can help increase sales and profits on each product over time. Besides that, product bundling can help lower the cost of goods sold (i.e. packaging fees), therefore increase your profit margins.
- Advertise New Products – Another great strategy for you to launch a new product is by bundling it with one of your best selling products. For instance, you can bundle your best selling anti-frizz beard oil together with your newly launched beard moisturizer to promote sales.
- It’s A Bargain For Customers – Customers typically understand that buying bundled products is cheaper than buying them separately.
- Convenience – Product bundling allows the customer to look at one single source that offers several solutions. If a customer has multiple needs and your product bundle addresses most or all of them, this is convenient for the customer so that they can make one stop instead of many.
- Acquiring A Large Range Of Customer – Sellers will acquire a large range of customers when selling bundled products such as customers looking for deals, customers looking for convenience or customers looking for products that complement each other.