“Adding on” is an essential part of the selling process. When you add on, you sell more and your customers will be happier with their purchase because you’ve either made the buying experience easier or have saved them money. What is the easiest way to add on? Create bundles.
Following are two types of bundles that are adaptable to almost all types of retail stores.
Bundle Items That Are Commonly Sold Together
Putting together this type of bundle makes it easy for your employees to sell and easy for customers to say yes to the bundle.
One example I heard of was a company that sold kites. Did you think buying a kite was simple? Not really – at least not time-wise, and in most cases – not “expertise-wise”. After picking the kite, you have to pick a kite string (often depending on the kite size and the typical weather conditions where you’ll fly the kite, to name two considerations). After that, you still have to choose the tail and something called a “snap swivel”.
Finally, someone decided to bundle the separate pieces together. In fact, they created three bundles – good, better and best. Each bundle was given a catchy name. In the first bundle, items were chosen that would deliver the best kite flying experience while giving the store the highest profit margin. Realizing that most customers wanted to drive a Ferrari, they also knew that not all customers wanted to spend that type of money – thus the reason for creating the good and better categories. These were still wonderful products for their price point.
It’s important to note that with this type of bundle, it isn’t necessary to discount the items. And the fact that you’ve taken the guesswork out of the process has made it easier for your clerks to sell while adding value to your product for your customers.
Bundle Multiples of the Same Item
This type of bundle works especially well for consumables or perishable items, but it can be used with all kinds of merchandise – candles, sweaters, flats of annuals, paint rollers, dog food. Think about your store’s products. I’m sure you’ll see all types of possibilities.
You will most likely want to use some type of discount with these bundles. It could be a straight % off of one or a larger percent off of multiples. Another choice is a BOGO discount (Buy one/Get one….). One store I know of uses BOGO pricing and also has a customer loyalty program. They sell high end products. Their “bundle” consists of a customer’s buying 10 of “xxx” over time. When they buy the 11th “xxx”, it’s free.
Because they use CounterPoint SQL software, it’s easy to track customers’ BOGO purchases. In addition they can award loyalty points based on all the dollars each customer spends. These loyalty points are redeemed like cash when making future purchases. And unlike Safeway, the points don’t expire in 60 days (unless, of course you want them to. If so, CounterPoint can handle that also).
Talk to you soon ~Norma