Bundling

Michael Barbarita • Oct 10, 2022

Bundling is the process of grouping together certain products to create packages which are then sold to clients.  When you do this, you completely eliminate the biggest complaint small business owners have these days: competing on price.


Bundling removes price from the equation by creating an “apples to oranges” comparison. You have to remember customers today shop for value - NOT PRICE! Unfortunately, small businesses aren’t the best at conveying their “value  proposition,” so price becomes the only value proposition left to consumers. 



The real key to success in marketing is to offer more value than your competition. Prospects will pay twice the price if they believe they're receiving four times more value.  Unfortunately, most businesses in a vain attempt to increase their value begin to offer discounts, and that often destroys their margins. Did you know if some businesses discount their price by a mere 10%, they now have to sell 50% more  just to break even?  We need to avoid that.


Instead of going crazy with discounts, innovate your business so you offer more value than your competition (even if that means increasing your price). When you discount your price, you lose the full value of every dollar you discount. Bundling increases  the perceived value, so prospects buy more.

 


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