One Powerful Marketing Technique: Bundling Products Or Services.

When I decided to launch services in this blog, the idea of offering it in the best possible way chewed my brains out for a while. After spending quite some time brainstorming about my line of attack, it finally hit me – the best approach would be to offer the services as a bundled package.

Bundling or packaging services and products is not a new practice. This powerful technique is widely used in the consumer based society we live in. Entertainment bundles, vacation packages, packaging of food in fast food restaurants and grocery stores, lunch specials, buffet, merchandises in the department stores are some examples of a bundled offers that you may come across on a daily basis.

Benefits of providing products and services in a bundle:

The obvious benefit of bundling products and services is increased sales and profits. But if you think about, there is a lot more involved in this process.

Bundling products and services is the best way to leverage your marketing efforts. You don’t have to spend your precious time and energy on selling products and services individually – rather, you can do it all at once. The less time spend on messing with the products and services mean you save money. Besides, offering the package also helps you push out products that may not do too good all by themselves.

The all-inclusive package is a marketing weapon for merchants and service providers as this is a perfect way to attract the attention of consumers.

When you go to McDonalds or any other fast food place, your eyes first land on the burger specials or combo specials they have. Instead of looking at individual food items at the side, your eyes automatically lands on the combo at first. Why? Because you know that rather than ordering burger, fries and a drink separately; the whole meal is going to be a lot cheaper on you.

The packages that are on sale at your local department stores are always a lot cheaper than if, you buy the individual items. Bundled packages psychologically trigger your client’s attention to the offers as they perceive an increased value in the offer.

What is VALUE to your potential clients and customers?

When you are bundling your offers, you would be able to significantly lower the unit price, greatly increasing the perceived value in the mind of your consumers. The perceived value is the real deal that makes the difference. This impresses your clients and consumers hence, rapidly increasing your chances of making sales.

If you think about it; value is in fact a mental fight between the benefits and the price. If you can find the right balance – more benefits for a cheaper price, your chances of making sales is much more.

Important relations between value, perceived benefits and price:

• When the price goes up and the perceived benefits remain same, the value diminishes.

• When perceived benefits go up and the price remains the same, the value goes up.

• When the perceived benefits go up and the price goes down, the value goes up significantly.

As you can readily see from these 3 relations, in order for the value to go up, you should always increase the perceived benefits more than you should increase the price. You never want the value to go down or else your potential clients are going to pick your competitions over you.

Developing a packaged offer:

The value of your products and services is generated when you package them so it is important to keep the psychology of your consumers in mind while creating services and products.

One of the tactics I used to create the packages I offer as a service is brainstorming the problems my potential customers might be facing and the simplest ways to offer solutions for those problems. After, I target the core problem, I thought about the periphery things I can add to the package that is not going to break me both financially and workwise.

Key things to remember while bundling your products/services:

1. The perceived value of products/services skyrockets when you offer something that is going to help solve your potential client’s problems.
2. To gain maximum conversions always provide more benefits than the true worth of the package.
3. Name your packages distinctly to clarify what is offered. If you take a look at my service page, you will see how I used Platinum, Gold and Silver; Platinum is the best of what I offer and silver is the lowest option while Gold is the middle option. I even decided to throw in the bonus package just for the hell of it (O: Offering multiple bundles each more valuable than the other one is a great upsell option.
4. Another key thing that you should note is that the perceived value increases when you offer your best product first and then the other ones respectively in the descending order. Putting out the best of what you offer first adds value to your offers. Besides, you would want to sell the best of what you offer as this means more financial gains. Right?
5. Don’t raise the price too much or else it is going to lower the perceived value. On the other hand, don’t price it way too low either. After all, you are doing business and you’d love to gain some profits from what you offer. (O:
6. If you can’t offer multiple products or services all by yourself, think about ways to collaborate with others to create products/services bundles. This is a win-win situation for both the collaborator because this leads to more exposure, new leads and hence more sales.

Packaging/bundling is a very powerful marketing tactic that can make a difference in creating that first sale or the extra number of sales you crave every month.

• What are the other benefits of bundling your products and services?
• Do you have any experience with offering a bundled deal?
• Is there anything else you would like to add to the conversation?

Please feel free to comment down below and add your thoughts and insights. Plus, if you like this article Tweet it, share it in Facebook or your favorite social media outlets.

Here’s to your successful marketing endeavor!

-Adam Paudyal.

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