Bundling

Product bundling is combining two or more services or products together to make the offer more appealing to the customer. Everybody likes to get more out of their money. Bundling can increase sales but it can also be risky if it is not done right.

Many different kinds of businesses bundle their products and services. Insurance companies and fast food restaurants are some of the first that come to my mind. Fast food restaurants offer combos that allow you to get the whole meal for just a couple dollars more than the sandwich alone. When you look at the cost of the items individually you see that you are saving money. Customers need to be careful when they purchase bundles to make sure that they are saving on the individual items, and to make sure that they are not paying for services that they do not use. Sometimes a customer will choose to try a new service or product that they would normally not try, because of a bundle deal, and then be interested in paying for that service or product again in the future.

Time is an important thing to think about when choosing to offer bundle deals. Some services require a lot more of your time to complete that others. If you offer a bundle option on services that take too much of your time for a lot less profit then you are losing money. This can also impact quality of service, because you may feel the need to rush to get more services done in time.