As you know, bundling is a competitive pricing tactic where merchants group and sell products or services together as a package deal to create a new price point. Bundling makes your offering more attractive to the customer, and that new price point makes it more difficult for your competition to track and compare your specific products and prices with theirs. A good example of product bundling is selling a computer with programs and peripherals as one package; packaging a recipe with the purchase of a pot or pan; or when McDonald’s asks, “Would you like to add fries or a drink with that order?”
The point is, product bundling works for any products, in any niche. The only limit is your imagination. I especially like these ideas for liquidating dead inventory, which can be applied to a variety of products and services across the board, thanks to distribution consultant, Jason Bader, The Distribution Team.
1. Bundle your dead inventory with a good product. Find a complementary product that can be bundled with your dead item (as Bader calls them, “your former darlings of the shelves”) to make a new package. Look for items that sell consistently. Bader’s example: Let’s say you have a bunch of small grinding wheels that you want to liquidate (perhaps you changed vendor lines or the manufacturer made a new and improved version). Regardless, you are stuck with an excess of product that no one is calling for any longer. In order to move the old wheels, match them with the appropriate grinder and create a bundle. Set a price that makes the new package attractive and push the deal out to your customer base. The beauty of this liquidation method is that you are also stimulating sales in your attractive products.
2. Sell multiple units for the price of a lesser quantity. Two items for the price of one is fairly common. Bader describes the owner of a police apparel business that found himself stuck with an obsolete jacket. In fact, he had several of these jackets to be liquidated. The merchant found that if he used “the Buy One Get One Free strategy”, he was able to liquidate his inventory in short order. That’s obvious, but go one better:
Bonus observation: Did that merchant get his cost out of the dead items? No, but the point is that he recognized that freeing up 70-80 cents on the dollar to invest in faster-moving products was a prudent financial move.
Special tip: Check your database to find out who bought these products in the past. Don’t limit your search to the folks that bought the dead item. Look at those customers who regularly buy the good side of the bundle. Look at trade types or customer segments that would logically buy the items in question. Even reminding them that they have bought this in the past will yield tremendous results.
I've got many more bundling and selling ideas for you in future blog posts.
Do you bundle your products? I’d like to hear about any creative bundling you've done. Thanks. Gilon