Bundles of Joy

With product bundles, everyone wins. The retailer generates higher sales. The customer enjoys the convenience of buying all the items at the same time and in one place – and generally at a discount.

Think gift baskets. Who doesn’t love a gift basket? Bundles are just variations of gift baskets – whether it’s a gift for someone special or a special gift for you.

Concerned about margins? The bundle discount doesn’t have to be extreme. The customer will perceive they’re getting a deal. Focus on total profits. By selling more products, you will be generating more profit dollars.

Plus, accessory items often have higher margins and there’s more room for discounts (e.g. chargers and screen protectors sold with smartphones). When the discount is significant, show the bundled discount and the bundle price compared to the cost of buying all the products separately. Great deals trigger sales.

How bundling can boost your bottom line:

• Increase basket size by selling multiple products all at once.
• Help move slow-moving products by combining with faster moving SKUs.
• Lower transaction costs by selling multiple products at the same time.
• Lower delivery costs by shipping multiple products at the same time.

So how to create the right bundle? Just combine complementary products and make sure to include some hot items. A bundle of duds isn’t going to sell, no matter how cheap. You can find plenty of ideas on your competitor websites and sites like Pinterest.

Bundling also offers the opportunity to upgrade the sale by placing the items in unique packaging. E.g. four bottles of wine in a wooden crate. The special packaging allows you to boost margins by selling the bundle at a premium price.

If you’re selling online, you can test bundle combinations to see what works best. Or allow your customers to build their own bundle. Your website isn’t sophisticated enough to do that? Remember the CPG mantra: If you don’t satisfy your customers, your competitors will.