Value Bundling – Pricing Tactic You See In Fast Food Restaurants

August 25, 2011 by  Filed under: Marketing 

For years, companies and business owners have been frustrated at their financial results, they ought to earn the amount of money their companies should ideally make, and because of that, marketing experts have come up with new marketing strategies every now and then, the one famous tactic that stands for years, is value bundling.

I believe the majority of us has either seen or experienced this tactic before, it is rare to not see this trick in supermarkets, clothing stores or any typical convenience stores.

So, what is value bundling? It is basically grouping one or more items together to create combos like you see in any fast food restaurants, for example McDonald’s. By combining several products together when someone purchases your deal you are entitled to get paid the full cost of the deal which is very promising.

The psychological effects behind this tactic often cause customers to perceive the value of the deal to be nicely discounted as compared to buying each item from the deal separately.

To effectively utilize this tactic, marketers often use three sneaky tricks to enhance the power, the success rate of people willing to purchase deals, these are the three:

#1) Combine a couple of items together and create a deal

#2) Raise the price for items bought individually from the deal

#3) Explain to the customer how much he/she will save from the deal

Bundling – A great advantage is to get customers purchase your deals without letting them choose what is included in the deal, meaning there are some things not everyone need, however customers will still purchase the whole combo just simply because they know they will save money for not buying the items individually.

Perception – Since a combo of items is worth more money than just one single item from the deal, if you purposely raise the price of each item from a combo, then the deal will be perceived as an awesome discount just for buying multiple things at the same.

Persuasion – You can strengthen the significance and the advantages to your customers of why they should consider your deal. Be straightforward and tell them the pros. Explain how much it would cost if they had to buy the items individually and that they will probably need the stuff in the future.

Bear in mind that there are scenarios where you should avoid using the value bundling strategy, and that is if you sell high-end or luxury based products, you will need to keep your prices up high unchanged, this is called prestige pricing.

Why? Because giving away discounts will ruin your brand’s reputation, credibility and the perceived quality of your actual products.

About The Author:

Harrison warmly invites you to check out how you can utilize psychological pricing to increase sales up to 45% right now with little-known human psychology strategies. Learn more over at psychologicalpricing.net.

Article Source:
http://EzineArticles.com/?expert=Harrison_Li

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