What’s better than getting dinner and a free show? Or a bottle of wine to take home with those holiday candles you bought? Or maybe a free teeth whitening with your usual massage treatment? If these don’t sound like great offers, think again because it’s exactly the kind of thing your customers are looking for.
Deal Bundling is when you offer two or more products or services to your customers for one cost. This is one of the most successful strategies for a business and is especially affective when created between two or more businesses and here’s why:
- Low Marginal Costs
- Increases Volume of unit sales
- Exposure, exposure, exposure. With other businesses involved you get a market of customers.
- Markets new, overstocked, or lesser known products
Consumers love the idea of getting two or even three things for one price, making bundling one of the most effective deals you can offer! There are many ways you can use bundling not only to attract customers but to help your business in other ways as well:
You can improve slow periods or seasons. Imagine you are an ice cream store who also sells coffee in a town that gets hit very hard with winter every year. You can use Deal Bundling to bring people in for your coffee when they might not normally think of it by bundling a deal with the neighboring theater!
You can advertise a new service. If you are a hair salon that recently decided to offer massage, you can Deal Bundle and offer a massage with a hair treatment between your stylist and massouse. Or if you are a book store that has recently decided to sell Movies as well, try bundling with the restaurant next door for dinner and a movie!
You can also use bundling to decrease any overstocked item. Maybe you are a novelty shop with an excess of stylish phone cases. You could always bundle with the mobile or technology store in town.
The possibilities really are endless but here is the best part:
You and all the other chamber businesses in your town are already on an app that will allow you to create these deals and offers, reach all of your consumers simultaneously, and share them on your email list and social media websites.
WHAT?!?!? That’s right! I challenge you to open up your $LN app right now and pick three other businesses that might offer something that pairs well with your product or service. Now think of all the new customers you could get by bringing their customers into your business. I’m talking a whole new market of people who are just waiting to try your company!
Also, by bundling with other businesses in town, all the employees will be encouraged to tell more people to download the app. This means even if people aren’t interested in that particular deal they will likely be interested in future deals!
Bundling can be tricky though. Make no mistake, you wouldn’t want to combine a burger and fries with an appointment at a health clinic. You also have to work closely with another business to determine what’s a fair deal and how to collect the money. Here are some suggestions on how to make this work:
Determine the prices of what both businesses are going to offer, reduce a percentage, and offer one pre-determined price. This way customers can purchase the first item and receive a coupon for the free item at the other business. The money is just split to the determined prices later. This one looks best to a consumer because they are seeing one price and two (or three) items. It signals that they are getting something for free which drives more return on the deal.
If it is a service such as a massage or hair treatment or dental appointment, sometimes a price can be hard to pre-determine. Instead of restricting the type of service your clients can receive (ex: 30 min massage only) which might hurt the popularity of the deal, offer a percentage off. In fact, if you don’t have a specific item you want to market, it’s best not to be too specific:
“$25 Hair coloring with the purchase of any dress $30 or more” doesn’t sound as good as “35% off Annies spa with the purchase of any item $30 or more.” and wont eliminate potential clients who might not be interested in dresses or hair coloring. Percentages discounts are beneficial because they drive more client interest and will increase the average sale total.
So now I’ve told you about one of the most popular types of deals you can offer and how it can benefit your business in a tremendous way. And you already have a free tool to get started with, so….what are you waiting for?!