EMBiz: What is Price or Service Bundling

What is Price or Service Bundling?

Laurel Mintz

Hi everyone, I'm Laurel Mintz, CEO and founder of Elevate My Brand, and this is EMBiz. Usually, I don't like to talk about sales because I think that most people confuse sales and marketing and it's really important to have a clear differentiated perspective on how marketing affects sales, but that they are very different approaches to how you Communicate with your audience. But today, I do want to talk about a sales function and that is service bundling.  

Mix It or Match It

And there's two types of service bundling. There is pure, where you can only buy certain products or services in one bundle or mix where you give customers the option of kind of mixing and matching at will. Now, there is a huge value in this both as a brand. And on the consumer side, obviously, usually when you mix things and bundle things together, you get a discount if you're a consumer. But there's also a huge value on behalf of the brands. we can obviously clear out inventory, which is a huge positive for lots of brands, especially if there's a seasonality to their products or services. This is also really great when you have like A lot of products and services to offer and you need to make room for what's coming in next. This is also really exciting for consumers when they have maybe a bunch of lower price point items that they want but doesn't make sense unless they bundle them into some more of the higher price point items to get a discount. This can also really affect shipping costs as well. 

Convert with a Combo

You wanna kind of think about bundling of services or products if and when you wanna give your customers the best value of your product or service.This often happens on initial purchase to incentivize that first purchase. Now again, this is a sales conversation, but it is a marketing conversation as well in how you message the sale to your audience. This is always really helpful if you have brands that kind of cross market or products that. Cross market and cross sell to each other because then you can do brand integrations if you have multiple channels you can cross sell on those channels and then as I said it's really most brands do it for initial purchase and conversion for consumers but a lot of people also do it seasonally for inventory management. 

Tried and True

So, as I said, I usually don't like to talk about sales, but we are in a new evolving season right now. So I thought that there was a value in having a conversation around what bundling is. I have to say I learned this in like business school 101, so it's really funny to be talking about this again, but it's also really funny how few service companies really think about the ability to bundle their particular services. I know it's something that we didn't think about in Elevate for a long time either, but it really does incentivize. It just makes the sell through process easier for the first purchase and then of course, again, when you're trying to get rid of inventory.