bundleIn today’s world “bundled offers” are everywhere. Travel agents bundle “all inclusive” packages of flights, food, hotels, and entertainment. “Combo Meals” which include side orders and a drink to accompany the main entrée account for 98% of all fast food purchases. Communications providers bundle cable TV, Internet, and phone together into packages. Even environmental services companies are combining attic insulation with a radiant heat barrier and then adding wildlife, rodent, or bat exclusion to create a “homeowner attic bundle.”

Packaging of products and services is a powerful marketing technique that creates a triple-win. It enhances the selling
company’s revenue, increases the average price and commission you experience as the seller, and provides added value and discounts for the homeowner. Additionally bundling increases the sale of some of the lessor-known collateral items you market. It automatically up-sells your customers without being blatant about it.

Additionally, bundling reduces servicing costs since your service team will be able to install multiple revenue streams with one trip to homes and businesses. The psychology of bundling is to be able to offer services and products at a lower unit price than businesses and homeowners would pay if they purchased them individually.

Here’s the message that bundling speaks to prospects:

  • “What she is offering makes sense, and also sounds like a good deal.”
  • “We might as well go ahead and have those three things done, because it’s just a matter of time before we would have to replace them anyway.”
  • “With the price discounts they’re offering me to do all this at once, I will end up saving a good bit over purchasing them one at a time.”

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Don’t ever forget that buyers typically choose the better value and perception is reality. Your job is to balance what they spend price) with what they get (benefits). It sort of works like a playground seesaw:

As the price goes up, if the perceived benefit stay the same, the value goes down.

As the perceived benefit goes up, if price stays the same, the value goes up.

As the perceived benefit goes up, and the price goes down, the value skyrockets!

Bundled offers help you achieve this third effect more times than not. So make sure that the packages you offer provide solutions to problems prospects are experiencing or will eventually encounter. Folks don’t get too excited when your selling efforts only consist of attempts to sell them anything and everything in your catalog.

bundle2Finally, in order to show the increasing value of your offerings, you might consider grouping them in packages, with labels such as the silver, gold, and platinum. Each word in the progression should denote the addition of at least one more item, which should also include a larger percentage discount. As an example, possibly your silver package might contain two items or services and a 10% discount versus buying them separately.

The gold package might contain three items or services, along with a 15% discount. And the platinum package might have four items or services along with a 20% discount. When packaged in this fashion, regardless of which one is purchased, you would make a larger sale than if they simply bought any one item or service.

Using this philosophy, one division of a services company I performed sales coaching for achieved a 14% increase during one year when we introduced and supported this concept among their team of 160 outside salespeople. It’s a great way to better serve your customers while increasing revenues and sales rep commissions. So Let’s Get Ready to Bundle……!

©2014 Robinson Training Solutions, LLC