Packaging complimentary products together is a fantastic way to offer customers exceptional value, and at the same time increase your average transaction value. It’s also a great way of moving old, unpopular stock that you have been having trouble shifting. Packaging simply means combining a range of complimentary products together and offering them at a special package price, as the initial sale (at a great savings figure, of course).
HOW TO PACKAGE PRODUCTS TOGETHER
To work out what items to include in a package ask yourself this question – “Which products and services can I bundle together to give greater value and better performance to my customer?”
When you ask this question, three interesting things happen:
- Your customers are getting greater value and greater performance so they’re much happier. What’s more, by purchasing the package they’ll be getting and trying product that they wouldn’t have ordinarily purchased on their own.
- Since customers are delighted in the value that the package gave them, they’re much warmer to your business and they’re much more likely to come back and do business with you again.
- You’re enjoying a higher profit sale because even though you’re discounting to offer a complete package, at the end of the day, the profit is still much higher per sale.
PACKAGE IN SOFT DOLLAR ITEMS
Remember going to your Royal National Show or local fair? And remember going to the Show Bag Pavilion and buying a Show Bag? The Confectionery Show Bags might have been, say $10, but when you looked at the sign on the wall looking at all the inclusions, the total value adds to as much as $60 sometimes more.
Approximately $8 is confectionery and the rest are vouchers for discounts at various tourist attractions. The hard cost for these discounts is virtually zero (because tourist attractions are freely offering the discounts to attract the business) yet the perceived value to the purchasers (namely children and teens) is fairly high.
Or, if you are a service provider, can you package in some of your low-hard-cost but high perceived value services? It needs to be something that they may have considered purchasing themselves but they still perceive to be highly valuable and relevant to their needs.
HOW TO SELL THE PACKAGE ON PRICE
- Sell the perceived value: One of the factors that people use to determine whether or not they are going to buy something is “value”, or more specifically, return on investment. They make a judgement based on the value for money they are receiving. So – the higher the perceived value of your package (and assuming too that the products are of interest to them), the more inviting that package appears to a buyer.
- Give it an inviting name: The name of your package can play a big role in how many sales you generate. If you’re a beauty therapist, don’t just call your package “The Beauty Treatment Package”. Instead call it something like “The Ultimate Indulgence Pack”. Give your package a name that reflects the benefits that your product offers and you’ll find that it becomes ever so much more attractive to customers.
- Show a photograph of the package in your advertising: A package instantly becomes more attractive when people can see it.
- Feature a limited quantity: The harder to get and more exclusive you make the offer, the more people will want it so only offer a limited number of the packages and you’ll find that your responses will instantly go up.
- Feature a limited time frame: Eliminate procrastination by including a cut-off date on the offer. Further create a sense of urgency by telling customers to hurry in so they don’t miss out EG: “Offer ends 14th September, 2019 so hurry!”
- Package offers are potentially even more lucrative than cross-selling and up-selling
- Package a combination of a core item that someone if likely to purchase anyways, together with soft-dollar items and offer it at a great price. So instead of just buying the core item at, say $60, they might buy a package at $99.
- Give your package an inviting name
- Sell the value by showing buyers the recommended retail price of all the items in the package. Tell them too, the amount they save by investing in the package.