Bundling Products to Boost Sales 12/9/2015
Top-selling products are kind of like your team’s Michael Jordan – they are your most valuable player (or MVP). They bring attention to the team (or in our case -- brand) and when sales dip, they always pull through in the final bit of the quarter. But when your MVP products start to slow on growth, how do you improve sales and revenue without intense marketing costs or overhead of new variations?
We found the solution in bundling.
Bundling is grouping products together that meet a related consumer need/solve a similar problem and selling them together as a single unit. It’s a great way to improve sales and profit without having to create a new line of products. We’ve seen these bundles grow quickly in sales, and because of their higher margins and price points, in many cases, they surpass the original MVP products in profit.
Creating a successful bundle is simple:
- Find your MVP.
- Determine the need that your MVP product meets (or problem it solves).
- Recruit supporting products.
- Bundle them together into a cohesive unit – taking it from multiple products to one solution system.
- Determine a price point that allows for good margins, nice discounts for consumers, and delivers value over buying the products individually.
To find our MVP, we inquired into a few of the #1 selling products on BuluBox.com and took stock of top reviewed products from past sampling programs. After reviewing sales data and data from their sampling programs, we found that these top products were powerful fat burners and weight loss aids. So, how do you increase profit on an already top selling products? Find support players around that same consumer need – in this case, losing weight.
Finding Supporting Players
What are your consumers looking for? Are you in the weight loss market? The sports nutrition space? One of the best ways to find supporting products for your bundle is to return back to your data. We sifted through sampling and sales data and found that people who rated thermogenics highly tended to also give high ratings to meal replacement powders, cleanse and detox products, and other energy products. Based on this information, we were able to group products in these categories into a bundle under the theme of “weight loss,’ and created a bundle with the MVP product and its related teammates.
Branding Your Bundle
There’s a difference between a box of products and a bundle. Your bundle should be equipped to help your consumer reach their goals faster than a standalone product. This is accomplished by offering a multifaceted set of products (think protein vs. protein + BCAA + pre-workout powder). The products should be defined and work together for the goal. Bringing together a group of products with cohesive packaging makes the bundle truly feel like a system or program rather than just a group of products. It’s what separates bundling from mere solution-selling.
One great tool to further support your bundle of products as a system is to provide a guide that enables you to showcase how each product works to reach the bundle’s overall goal. If you’re in the retail space, packaging all of your products together in a bundle with a branded box and packaging is another chance to show off the products as a cohesive unit. This turns three individual products (for example weight loss products) into a fat burning system or program to be followed with the added value of direction and guidance for the user.
We know that Jordan was a great MVP on his own. But, he achieved legendary status when he was “bundled” with Pippen, Rodman, Kukoc, and Harper. Find your all-star team of products and take your MVP to “legendary” shop status.
Paul Jarrett is CEO and Co-Founder of Bulu Marketplace, Bulu Marketplace is a data-driven, proprietary matchmaking platform built to connect retail buyers and consumer packaged goods suppliers. (www.bulumarketplace.com)