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Story by
bethela
Published on November 21, 2007 in How-To |
Photo by atwhim |
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.
Beth is an admin at Etsy on the Business Operations Team. She is writing about pricing in a multi-part series, so ask her your questions in the comments below.
| Tags | Art of Pricing, bundling, business, discounts, HOW-TO, marketing, pricing, Seller Handbook, selling |
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38 comments Login to add your own!
ChristineRenee
You read my mind! I just started bundling items because of the holidays -- I have a few different zombie-related items that I package together as a set. And that's going remarkably well. So I've been trying to think of other things I can bundle together. After reading this article I feel like I'm on the right track. :)
SpaTherapy
Great advice! Putting a gift set together makes shopping easier for buyers and who doesn't love easy? :)
TheLittleStitcher
Timeless
onegirlsopinion
I'm offering items at $5.00 each 5 for $20.00 but I'm not sure how to process the check out.
photolove
onegirls, you could get them to buy four and then tell you what else they would like in the 'notes to seller'. Or you could refund the extra money after they've paid.
FeralGlass
As you can see in my avatar, my sculptures look very cool when in small herds. But I did not know how to encourage purchasing multiples. I will now devise small, medium and large herds of Feral Glass (pick any 3,5, or 7). I'll let you know how it goes.
Thanks for sharing.
blancahelga
Thanks for the article, very useful. But I´ve a question, I was just doing that bundling with some of my drawings: 8$ one, but if you take four then 20$. But I was not sure how to make the adverstistment and at last I added an extra item in my selling list with the four drawing together (paying more for that).
Is there another way of doing it, without the extra item?
I was also offering an especial free customized wraping for christmas, but I dont know where to advise it. (In the item? In the head of my shop?) Any tip?
Thanksin advance....
laurabucci
Very useful article for those of us that are not sales people. I just started making felted wristlets (not on etsy yet, but on laurabucci.com) and accidentally realized that as soon as you put a flower pin on them, the whole look changes -- which can appeal more to some. So the flower pin is an excellent accessory to the wristlet. I will be trying this sales/marketing technique at an upcoming live market. I never really thought of bundling before, so thanks!
harmonyvanlue
So THAT's what bundling is! I've been thinking of doing this with some of my prints - this has definitely convinced me to take the leap and give it a shot!
FeralGlass
Bundling works... i liked the article and decided to give it a try in my store.
I created a "Small Herd of Free Range Glass". The buyer could pick ANY 3 of my tall (25") Garden Spirit sculptures, and save 15% off the price.
It worked. Someone bought two "Small Herd"s, a total of six sculptures. They sved a bit of $$, but I got six sales in the place of one or two had I not made the tempting offer.
Try bundling some of your creations. See if you can find a combination that works for you.
onesweetpeach
alkemystic88
I am going to try it. I'll offer three afrolady earrings for the price of two.
tropicalbomb
JoelleDolceBebe
I realy appreciate this article!
actually all the advice. im just starting out selling & new to reading in these forums!
Thank you so much for all the info.
Now im going to rethink things, offer smaller items, under $20/ 10 gifts etc... so I will Think harder now trying to figure out what to create with all this in mind.
Hopefully it will generate business/exposure for me, give me more ideas & create smaller items to work with the bigger $ items.
Thank you : )
jadazaine
I really think your article is very helpful. I just have a question for you: I've noticed that some photographers list a photo for sale at lets say, $25, but also inform their customers that it's available for a smaller size at lets say, $15 and to just convo them if they'd prefer a different size. My question is, is there a way for the customer pay the price difference through paypal, or do you have to create a listing specific to the customer's order, for them to pay the correct price?
thank you for your time. I hope this makes sense.
trachelle1974
I have been on etsy since Sept 2007 but I am just now reading some of the articles. I love the idea of bundling and also giving buyers a discount on multiple purchases. I am unclear on how the check out would work since my buyers have been using paypal. Is there a section or article that explains how this would work?
Thanks so much for the useful information. I never thought I could turn a hobby into income while sharing my creations!
ArelelDesigns
yellowwalls
So helpful! I'm offering discounts on jewelry sets now. We'll see how they sell.
dogties
SASjewelrycreations
Great article! Is there another article or other information somewhere on Etsy that explains how to manage "check-out" process when customers redeem a gift certificate or wish to take advantage of a sale with a certain % off. As a seller do you just need them to pay the full price and then do a refund? Have not done a refund yet, any helpful tips?
soapychica
very helpful article, I am glad I found it, as I was thinking over seasonal gift sets for my shop!
villavillakula
ooooh. I like how your thinking. This is so true. Sometimes when I see a package deal I end up getting another item I didnt origanally want just cause the package deal looks tempting. Great advice
PottersVision
Thanks for the great information. Just tried it for the first time on Etsy. Hope it works for us.
EarringsGetASpare
Thanks for the article. Confirms my pricing for my bracelet & earring sets.
Janaration
Thank you - I was wondering how I could increase sales. This article was very helpful!!
JetWhitePonytail
erinschock
Why didn't I think of that?! Great advice. I will try it out. Thanks.
YMDesires729
I just joined Etsy.com yesterday and I make beaded jewelry and small percussion instruments such as shekeres and maracas. I appreciate this article because it gives me a little more insight as to go about selling my jewelry sets.
misfitchic
Such a great idea! Thanks for the inspiration article (cogs moving...)
limelightglass
This is the first in exploring what Etsy has to offer as a seller. Very impressive. Will be giving this bundling technique a try. I often make coordinating pieces but only offer them separately, now I'm going to offer special deals for sets. Will see how it goes.
CoolSunshine
OyVeyCafe
I sell vintage so sometimes it is hard to bundle things together....but I would love to try and keep my eyes out for any pairs that could be sold together! Thanks Storque ;)
croppingal
SethandSherrie
Very interesting. I may be trying that on my photography prints. Thank you!
lemondropbay
I'm new to etsy and recently had my first sale!Woohoo!
My ? is ... when to decide to have a sale. Seeing as how
the sale was so recent would the buyer feel snubbed be-
cause they paid full price and now the item is on sale or
bundled? How do you handle this?
sweetcreekherbs
I would think you would list your bundles as a separate item? Is this right? Could even have a section in your store entitled: "Gift Sets" or something like?
I think it is a great idea. Thank you.
Previous Page
Great article, Bethela. I'm actually working on some accessories for my bags and have been thinking about making a "bundling" offer with the purchase of a bag. Except now I have a word for it! Thanks for the timely advice.