Definition of Price Bundling
It’s a method where a business puts together a few items and sells them at one price instead of selling each one individually.
Description of Price Bundling
Here, you pair items together and then price them less than it would cost individually. This is good option for removing the items in your inventory that you can’t get rid of. At the same time, you increase your brand perception in the eyes of consumers because essentially, you’re giving them something for free or at a much lower cost.
Advantages of Price Bundling
A business can sell its less popular items alongside their better ones which allows them to charge more for the bundled item while removing some items out of their inventory at the same time. Additionally, shoppers can get a discount when they purchase a bundle. It’s also a great way for businesses to market their items that aren’t as popular in order to increase the appeal of that item which in the future, can provide a bit more income for the business.
Disadvantages of Price Bundling
Consumers have no choice but to buy the item or service regardless of whether they want it or not. Additionally, since there is a discount in the bundle, the company can end up losing some money. It can also accidentally get rid of customers since they view the bundle as a way for the company to get rid of old items together with the actual, important one.