Pros and Cons of Bundle Pricing Strategy
Stats show that reliable telecom companies reviewed by customers combine two or more product packages and sell them as one package to them. Both the customer and the producers derive an advantage from this type of business.
The consumers get to access more products at a reduced price while the manufacturers get more customers and increase their brand popularity. The producers have the advantages they enjoy and the disadvantages they suffer from this type of strategy.
Pros Of The Bundle Pricing Strategy
Every pricing strategy has its good sides, and here are some of the advantages that businesses enjoy from this pricing strategy:
- It Reduces Pricing Disputes
Bundle pricing is one of the ways that businesses such as reliable Internet providers avoid creating a bad name for themselves. By reducing pricing disputes with their customers, their brand enjoys good publicity.
Because of how the package is presented, customers have no reason to complain about the product and its price since they know the product’s cost would have been if sold separately.
- Marketing Cost Is Reduced
Businesses now use the bundle pricing strategy because they see that this strategy helps to reduce the expenses of selling a product. The money that would have been used to market two or three products can now be used to market a combined one.
- Fast Transaction
Bundle pricing strategy helps businesses to maximize their time. The time used during the transaction of two products is conserved; businesses can channel this time to doing other profitable activities. By putting two or more products or services to one, the speed at which transactions are carried out increases.
- Opportunity to Market Less Known Products
Companies use Bundle Pricing strategies to market their less known product by attaching them to popular products. In this way, businesses get revenues from their less known products. A company or business may have a not well-known product, but those less known will also be sold by adding it up with popular products.
Cons Of Bundle Pricing Strategy
In everything, there are advantages and disadvantages, and this applies to bundle pricing also.
- Sometimes Popular Products Are Affected
Sometimes when this strategy is not used with caution or overdone, business customers will lose interest in their popular products or services. A good way to balance this is by making room for individual sales of the bundled products. This way, your customers can choose between the bundled products or the single item they need.
- Customers reject the Bundled Package May
Some customers may not like the idea of being burdened with something they didn’t specifically ask for. Some customers prefer buying things separately and may feel that you are pressuring or forcing them to buy what they may not even need.
Conclusion
A bundle pricing strategy is a great way to market products, especially those that are not popular. Just like any other thing, bundle pricing has its good sides and bad sides. But businesses should strike a balance when using this pricing strategy.
