Ever had a product on your shelves that refuses to sell? Every client seems to reach over it, around it, and through it, as if it’s invisible.
This is where bundling comes in handy.
Bundling is the practice of taking several individual products or services and selling them to consumers as one combined package, often at a reduced rate.
Bundling is the second most popular pricing tactic behind outright discounting amongst retailers, according to a study by Software Advice. The idea behind the practice is to reduce the negative feelings associated with spending by incentivizing purchases. As many as 90% of retailers reported using bundling to sell products in their businesses.
Bundling is a win-win for you and your customers. Your clients get to feel like they got a steal—even if they’ve ultimately spent more than intended—and allows you to offload seemingly unmovable inventory while increasing your overall retail sales.
It also encourages your customers to spend a lump sum upfront with you, rather than occasionally purchasing single items over an extended period of time, or even purchasing those same products from multiple outside retailers.
Ready to give bundling a shot? Here are three types of bundles to offer your customers to get inventory flying off the shelves.
Double Up
Customers are more likely to splurge if there’s a promotion involved. Bundling multiple units of the same item at a reduced cost is a great way to move merchandise and increase perceived value.
Consider offering this option as a flexible bundle; guests can purchase a single item at full price, or they can purchase two of the same item for a small discount, or even three items for a higher discount.
This gives customers the opportunity to stock up on a product or service by purchasing two or more of the same unit while feeling like they’re getting a great deal because of the discounted price tag.
Check out this example of how the business stands to profit by offering a promotion.
Giving Complements
Bundling products that complement each other is a fantastic way to move surplus stock by adding enhanced value to both products when paired together. This mixed bundling tactic was found to be wildly effective amongst consumers, especially with buyers who were more price-sensitive, in a Harvard Business School study.
Take advantage of how your customers are always looking to remedy something. Either their hair needs to be fuller, face smoother, or car cleaner longer. Traditionally, working towards these personal goals is not resolved in a single solution.
Create complementary product bundles that service a consumer’s particular pain point, like these examples.
Fuller Hair Package: Volumizing Shampoo, Volumizing Conditioner, Root Boost Mousse, and Tease Comb.
Clearer Skin Package: Daily Face Wash, Weekly Exfoliating Wash, Oil-Free Moisturizer, and Acne Spot Treatment.
If you choose to bundle slow-moving merchandise that pairs well with a popular product or brand new inventory item, make the effort to educate consumers on why those two products are more cohesive together and improve their user experience.
Creating an Instagram Reel or TikTok video to visually demonstrate how the products work side-by-side is a surefire way to not only generate interest, but also demonstrate your expertise and build trustworthiness in the process.
Only bundle products together that are genuinely complementary. Perceptive clients will be able to tell if you’re just trying to ditch old merchandise, which will quickly turn them off future purchases.
Cross Over
Take advantage of creating perceived value through cross-selling. Cross-selling is the practice of selling a product that complements an existing purchase but is from a different category.
You can use practice this to frame immovable products as bonuses or freebies for customers who purchase particular services, while building the cost into the service price.
For example, you can practice cross-selling in your salon by offering a free hair product to anyone who books a deep conditioning treatment alongside their usual cut or color. This allows you to not only upsell an additional service treatment, but also move more stock.
Effectively executing this strategy primarily involves good marketing. Clients have to believe that there is a benefit or value added in order to feel comfortable spending more.
Develop timely or relevant themes for your bundles, like pitching the above bundle as the Salt Air Hair Repair package for guests who have fried their strands in the summer sun. Don’t be afraid to get creative with your ideas.
Getting Started
Not sure where to start when it comes to bundling? Leverage your customer data to make smarter selling decisions.
If you notice a pattern of guests buying certain products together, that could be a solid opportunity for you to bundle those products together along with a less popular item for a boost in sales.
The fastest and easiest way to get a clear read on your inventory performance is by utilizing business management software. If you use a salon software or spa software that offers inventory reporting options, pull the cold, hard numbers to help define your potential bundling opportunities.
For example, Inspire offers a Product Sales by Rank Report that allows you to see which products are performing most effectively in your business.
Simply define the timeframe, select company-wide or worker specific, choose all products or a specific product line (including or excluding unsold products), Sort By category, and generate the report. In seconds you can see which products are selling the best or the worst, including your Return On Investment (ROI) percentage. This instantly shows you where you need you need to focus your bundling efforts.
Bundling is a fantastic way to breathe new life into your retail sales and improve your inventory numbers. Whether you use them for raising product awareness, moving stagnant products, or the ever-popular method of boosting sales during gift-giving occasions, you can’t go wrong with using this simple tactic to drive more sales in your business.