What is Bundling?

A marketing and pricing strategy where multiple products or services are combined and sold together as a single package or unit, typically at a price lower than the sum of individual item prices.

Key benefits:

• Increases average order value (AOV)
• Creates perceived value for customers
• Helps move slow-selling inventory
• Differentiates from competitors
• Simplifies purchasing decisions for customers

Types of bundling:

• Pure bundling: Items are only available as a bundle
• Mixed bundling: Items are available individually and as bundles
• Cross-category bundling: Combining complementary products from different categories

Pricing strategies:

• Usually priced 5-15% below the combined individual prices
• Can highlight the savings or focus on convenience and compatibility

Examples:

• Fast-food value meals
• Software suites (Microsoft Office)
• Telecommunications packages (internet, phone, TV)
• Product accessories (camera with lens, case, and memory card)

Effectiveness: Most effective when bundled items complement each other or solve related customer needs.