| Bundling products or service offerings can be a great | | | | supply of blank DVDs or online storage for backup. |
| way to: | | | | How about cleaning supplies, and laser printer paper? |
| - Seed your existing market with a new product | | | | You know that your customers will be using these |
| without an expensive sales program. | | | | products, so why not provide them as a convenience. |
| - Create a new market for an existing product in | | | | Save your customers the trouble of ordering the items |
| combination with a new product. | | | | from another vendor. |
| - Clear inventory of current versions in preparation for | | | | One of the problems I can already hear you bringing |
| new versions of products. | | | | up is, "But we already offer a service contract and we |
| - Extend the life of one or more flagging products. | | | | can't get people to take it." |
| While this has been a staple of marketing in the | | | | Of course not! We all hate being nickeled-and-dimed, |
| software business for years, it can also work for other | | | | which is why extended warranties and service |
| types of products and services. | | | | contracts have such a bad reputation. If you built |
| To be fair, bundling already works well in other | | | | enough profit into your products and services, you |
| businesses too: hair care products are often sold in | | | | could simply provide the service contract as part of |
| bundles of shampoo and conditioner; books and music | | | | the deal, and even call it a free bonus. Spread the cost |
| CDs are sold in sets; dishes are offered with | | | | out across your entire product line and it won't raise |
| accompanying accessories. | | | | your prices much. And you'll make up the added |
| What Is a Bundle? | | | | expense through regular upselling opportunities. |
| What makes a bundle, well, a bundle? Generally, a | | | | Software Examples |
| bundle consists of two or more products that either | | | | A friend of mine once wrote and sold a software |
| share some characteristics or that can be used to | | | | program that helped companies monitor and identify |
| solve different problems for the same target | | | | performance bottlenecks in their database applications. |
| customer. I've already mentioned some of the more | | | | Once a customer knew where the problem was, he |
| obvious examples, but let's consider some not so | | | | could write a script to fix the problem. My friend wrote |
| obvious examples. | | | | twenty-five scripts that would fix the most common |
| Professional Organizers Example | | | | performance problems in the most popular databases. |
| If you sell your services as a clutter coach or a | | | | As an incentive, he would provide those scripts to |
| professional organizer, you might consider bundling a | | | | anybody who purchased his product within a certain |
| few products with your services: | | | | time limit. |
| - Filing cabinets | | | | Issues to Keep in Mind |
| - Shelving units | | | | If you decide to bundle two or more products, keep |
| - Desk accessories | | | | the following issues in mind: |
| - Office supplies | | | | - If you discount your bundle relative to the cost of the |
| - Cleaning supplies | | | | individual components, make sure that you don't |
| Of course, these are products that would be easy | | | | discount so much that you actually lose money on one |
| enough for the client to obtain on their own, but why | | | | or more components. |
| not add these to your offering? You can deliver the | | | | - If you charge more for the bundle than the customer |
| products to your clients when you come to perform | | | | would pay for the component parts, add value by |
| your consulting duties, saving your client a trip or even | | | | including a booklet or some type of service. |
| saving them from ordering the wrong supplies or too | | | | - Make sure your follow-up procedures are in place. If |
| many, not enough, and so on. | | | | you offer ongoing service, you must be prepared to |
| You may even be able to forge a deal with an office | | | | provide that service consistently. If you offer products |
| supply company to provide you the products at a | | | | that need to be replenished, make terms of the |
| discount. Or look for suppliers who might be willing to | | | | arrangement clear to the customer: if you will charge |
| private label supplies using your logo and company | | | | for the replenished products, obtain approval up front. |
| name. | | | | - Keep packaging simple unless you intend to create a |
| The Common Computer Hardware Example | | | | long term product that will need its own packaging. |
| When you sell computer equipment and installation to a | | | | Often, software product bundles have their own |
| small company, why don't you bundle in a service | | | | special packaging, the Leaky Faucet First-Aid Kit |
| package that provides monthly cleaning, backup, and | | | | probable won't. |
| troubleshooting service? Bundle in training. Offer a | | | | |