We Use Data to Determine the Most Profitable Bundling Strategy

Product Bundle Pricing

When a bundle of offerings is the only option available, we consider its value drivers and price it accordingly. We also have clients, however, that offer both a bundle and its individual components, and in that instance, our goal is to understand the pricing power of the bundle versus that of the individual components. We perform a quantitative assessment to determine the optimal price point of the bundle – one that signals the value of the bundle relative to buying the individual items and spurs customers to purchase the bundle.

Natural Bundle Identification

When we conduct a pricing engagement, we obtain our client’s invoice-level data, giving us visibility into every item our client has sold to every customer. While analyzing that data, we often identify customer buying patterns that suggest natural groupings of offerings. With that information in mind, we work with our clients to determine whether selling those products together makes sense and to devise a bundle pricing strategy that yields a margin boost.

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