Tue, 5 September 2023
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Bundle pricing sets the price on a package of services that is lower than if you bought each service individually.
This generates more demand for the product since the price is lower.
It can increase sales because the product bundle has more features and usability than an individual product.
It can also be used to create a higher perceived value at a lower cost.
Bundling works with products that are complementary such as a game console and a game.
To set a bundle pricing consider the following:
Select the main product that customers want and then add complementary products to the bundle.
Choose complementary products that increase the usability of the main product.
Set the price of the individual items at a price that encourages the customer to buy the bundle.
Know your cost of products and don’t set the price below cost.
The downside to bundles is that if the bundle doesn’t achieve higher sales, then it reduces the profit.
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