A product bundle is when several items are sold as one combined product. For example, we see this at McDonalds and other fast food restaurants that bundle meals, such as the “Value Meal,” where multiple items are sold for slightly less than the items individually. In this example, the psychological cost of purchasing all those items is lowered and the buyer feels like they are getting a great deal. A bundle can go by many names: gift sets, package deals, collections, a set, etc.
So why does bundling work? Many times buyers approach their shopping with a price range in mind. For example, Ms. Etsy is willing to pay up to $90 for a handbag and $50 for a super cute hat. TeenAngster, on the the other hand, will gladly spend as much as $120 for the handbag and up to $20 for the hat. Ms. Etsy is willing to pay more for the hat, but is also interested in the handbag. TeenAngster is willing to pay more for the handbag, but is also interested in the hat. Using a bundle you can create an attractive package for both Ms. Etsy and TeenAngster. In this example you could offer a $10 discount to buyers who purchase both a hat and a handbag, creating a bundle priced at $130. This will increase your sales because both TeenAngster and Ms. Etsy would both buy a handbag and a hat. It can be challenging to anticipate all buyers’ needs, but creating combinations like can make more of your products sell.
Bundled pricing can also be viewed as a service to customers. Bundles can be used to simplify the purchasing decision, coordinating the purchase of related or like items. Many people don’t want to expend the effort to make these decisions and would gladly pick the item that is already coordinated. For example, here you can see a bracelet and earrings set.
Another example is when multiple products work best together. By combining the onsie, yoga pants, bib, and burp cloths, the seller helps the buyer pick items that work well together.
Or in this example, a pair of pants and a top — while they could we worn separately — has a whole different look worn together.
Now that it is around the holidays, we see many gift bundles. This is a great way to market to the harried shoppers trying to shop efficiently for special gifts. This could be something like 2 handmade bars of soap and a cream, maybe at a 10% discount to the items sold separately, maybe at a slight premium because of the wrapping and presentation.
A value bundle, such as buy two get one free, or free gift may be used to draw the buyer in when they might be on the fence to purchase the item. The example below combines the concept of simplifying the purchase decision with the coordinating pants and top, with the concept of the free gift as well.
Bundled pricing is a strategy to attract a large range of buyers: buyers looking for deals, buyers looking for convenience, or buyers looking for advice on items that compliment each other. Bundled pricing may be accompanied with a discount, but it doesn’t have to be. As a seller of handmade goods, you can save your shipping efforts by selling more items together. As a marketer of handmade goods, you can use bundling to maximize your sales from each customer you attract.