Jan 30, 2015


Newly added content looks at product bundling. Mixed bundles, pure bundles and the differences between them, real world examples of each and the appeal of bundles to the consumer.


Bundles are a very powerful way to increase sales and profits. New content recently added started by looking at the concept of bundling in general and the differences between pure bundling and mixed bundling. Although the term "bundle" is used describe both there are important differences between pure and mixed approaches and it is important to understand.

The next addition looked at the appeal of bundles. Product bundling is incredibly effective for retailers and popular with customers, but why? New content looks at why bundling is so powerful.

Then new examples of product bundling in the real world were added. These case studies look at movie theater snacks, and they join the many other examples of bundling (please see "Related Material" below) on this site. The goal is to put the terms into a real world context so they are easier to understand.

An additional post looks at how the travel business employs revenue management strategies, and how these same ideas can be used by a retail florist. A resort prices their rooms according to the way travellers value their product and florists can do something very similar.

Category: Weekly Summary

Sponsored by FloristWare

Beyond Cost Plus is sponsored by FloristWare – the most powerful, affordable and easy-to-use POS software for retail florists – as part of their commitment to the floral industry and desire to see flower shops be more successful.

FloristWare – flower shop software/POS system.

Related Material

In-Flight Internet Access: An Exciting Opportunity For Airlines

Access to in-flight internet is growing and presents exciting new opportunities for both travellers and airlines with the right strategy - and it's not the one most travellers think.

Unbundling and the Entitlement Trap

Airline baggage fees offer incredible value to those that travel with more luggage without passing any of the associated costs onto those that don’t check bags. Why does everybody hate them?

Bundled Chicken Dinners

Take-out chicken deals show that bundling is very effective at increasing revenue. Unbundling can make sense but bundling should not be forgotten.

In-Room Internet Access at Hotels

Hotels employ some advanced techniques when pricing in-room internet access - but are they being too greedy?

The Diminishing Marginal Utility of Fresh Brownies

Diminishing marginal utility, and pricing to account for it, becomes very simple when you think about the enjoyment you get from something like fresh brownies.

Pricing Fail: In-Room Hotel Internet Access

In-room internet access: Inexpensive hotels give it away. More expensive hotels charge for it but give it away free in the lobby. Is this a sound pricing strategy?

Bundled Pricing at the Movies

Movie theater snack combos provide interesting real-world examples of both pure and mixed bundling.

Six Reasons Why Consumers Love Bundles & Bundled Pricing

Consumers love bundles and bundled pricing – so much so that they will buy bundles with items and sizes they don't want even when they cost more. Why?

Baggage Fees, Entitlements and the Perils of Unbundling

Earlier today I was speaking with a florist that was looking at changing the way they charged for some ancillary things (delivery, etc.) and it brought to mind the dangers of unbundling things perceived as entitlements.

Pricing Attraction Tickets and Bundles

Attractions are a highly perishable product and operators are keen on revenue management – combining bundles and hurdles in an effort to maximize revenue.

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