Product and service bundling is an approach used by businesses that benefits both the buyer and seller. At Bayou Bookkeeping & Tax Services, many of our clients are business owners. If you are one of them, you probably use products or services today that are bundled. In fact, you may offer them yourself. In either case, this article explains the benefits of business bundling.
Business Bundling Examples
Perhaps the most common and longstanding example of a product bundle is the fast-food value meal. Buying a soda, cheeseburger, and fries individually costs more than a value meal. The value meal earns its title because it produces more value to the buyer to bundle the three items together than to purchase them separately. Another example of bundling is a streaming subscription that gives you access to multiple channels. Bundling occurs across industries, from utilities to software to manufactured products.
Increase Your Sales
If your business offers more than one product or service, bundling can increase your sales. Let’s use the value meal as an example. Have you ever wanted a cheeseburger and soda but purchased the value meal instead to save money or because of the perception of the added value? Business bundling results in buyers purchasing more than they would otherwise, which increases your average sale, as well as your overall revenue.
The second example of a business bundling offering is to fold in features previously offered as upgrades. For instance, many car manufacturers offer features, such as safety features and infotainment in their lower models, that were relegated to upgrades or higher models. Today, many of those features come with the base model, which increases the purchase price. Additionally, dealers may offer packages that include multiple features as a bundle to a vehicle that would result in a higher price if purchased as individual features.
Decrease Your Costs
In addition to increased revenue from using business bundling as a business model strategy, you can also lower operational costs when purchasing bundles. For example, instead of paying different providers for a customer relationship management tool, email platform, and sales funnel, you can bundle the options together from one provider. Another example is Human Resource (HR) functions. Many outsource their HR efforts, which reduces overhead. When you outsource, it makes sense to choose a provider who bundles services instead of an individual payroll processing provider, onboarding provider, etc.
Business Bundling with Bayou
At Bayou Bookkeeping, we offer bundling, which benefits our clients. With our services, you can get access to bookkeeping services, tax filing, payroll, accounting, financial reporting, and HR support. Moreover, we also offer subscription services to minimize your costs by using a monthly rate instead of a pay-per-service approach. If you live in the Baton Rouge area, including Denham Springs, Central/Greenwell Springs, Walker, Livingston, and beyond, call us at (225) 442-1137 to learn how our bundling services can support your business. You can also request a free consultation online.