Bundle pricingBundle pricing is a simple pricing technique where you bundle products and sell those at a lower price than you would, if sold separately. The psychology of bundle pricing is built on the consumer surplus. And Consumer surplus is created when a consumer can buy same products with a lower price than they would be willing to pay for, if they bought the products separately. As a result bundle pricing is used widely for example in hamburger restaurants. It offers seller an opportunity to sell more. This is done in two ways:
1. The buyer would not necessarily buy all the items offered, if they would need to choose what items to buy
2. The buyer most likely will buy more, if they feel that the more they buy, the more they save
Businesses can simplify their processes better by bundle pricing. In many cases ordering everything separately creates thousands of variations in services, instead of three to four different bundle options, that are offered to the consumer. It also eases the buyer psychologically and simplifies buying.Strategy cardStrategic importance (retail)Strategic importance (ecommerce)Ease of usePractical implementation
1. Bundle pricing can be used to simplify offering.
2. Bundle pricing should be used to sell more by using the consumer surplus as an advantage for the seller.
3. Bundle pricing can be used for campaigning and sampling new items or products.
4. Bundle pricing can be used also on cross selling different items.
1. Bundle products that consumers would not necessarily buy unless offered in a good package deal.
2. Make sure that the process to deliver these products is simplified enough to justify the cause.
3. Choose products that generate more margin to you and more value to the consumer when sold in a bundle
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