Smart retailers are always looking for ways to increase revenue, and bundling is a great way to accomplish that goal.
Like the name implies, bundling refers to combining two or more products into a single package or kit (which is why you may also hear it called “kitting”) and offering it at a discounted price. It is a commonly used pricing strategy among retailers across all industries, so it is definitely something you should consider when looking for ways to increase sales of your custom-branded skin care and beauty products.
Product bundles come in a variety of forms, from everyday bundled sets to holiday gift assortments and subscription boxes, so it’s worth knowing a bit more about the why, when, and how behind creating the perfect bundle. Let’s start with the why.
Why bundle your products?
There are several key reasons retailers choose to group products together and offer them at a special price, and the first is to raise the average order value. According to research, customers tend to spend more (and purchase more products) when they believe they are getting a good deal. Bundling also saves money on transaction costs, because buying products in a bundle means fewer individual orders.
Second, bundling can help you move unsold inventory or slow-moving stock by combining those items with either new products or more popular items. And speaking of new releases, bundling is a great way to introduce customers to your latest product offerings and entice them to buy.
Finally, product bundling is appealing to all markets: your regular customers, new walk-ins, and even the casual internet browser. In other words, it’s a great way to drive revenue without making any other changes to your marketing strategy (though, experts will tell you that you should always be optimizing your marketing strategy).
When do you bundle products?
Really there’s never a bad time to bundle products, though there are certain times when bundling shines—one of which we already talked about. Bundling is an excellent way to get the word out about new products and encourage people to give them a try. Introducing a new Volumizing Lash & Brow Serum? Why not combine it with your popular Cucumber Herbal Eye Gel and Eye Corrector Serum for the perfect eye care bundle? Once you get started, the possibilities are endless.
Holidays are also the perfect time to get your bundle on. From Valentine’s Day to Mother’s Day and of course during the winter holidays, it pays to package up a gift-worthy assortment of customer favorites. Just be sure to offer bundles for every budget!
Finally, if you have a product or products that just aren’t selling as well as you hoped they would, consider bundling them with complementary products to boost customer interest and demonstrate the enhanced benefit of using multiple products together.
How do you bundle products?
First and foremost, your product bundles should make sense, which is why we mentioned bundling complementary products (those that work well together). For example, a great idea could be a “day and night” bundle that includes a daytime facial moisturizer and a detoxifying night cream. You could even include a refreshing facial mister to round out the benefits.
Next, be sure to listen to your customers and pay attention to what they’re buying. For example, if they typically buy product A with product B, consider bundling the two together, and maybe adding a complementary product C—all at a discounted price point—to expand their beauty ritual.
Another important tip? Don’t overdo it. Simple bundles are often the most well received, so stick with a handful of products and avoid creating an over-the-top bundle that may overwhelm potential buyers. Likewise, while you should have several different product bundles to choose from, avoid offering so many that your inventory is saturated with them.
Our bundle recommendations:
- Daily Routine – all purpose for everyone
- Hydrating face moisturizer (morning)
- Detox Nightwear Cream (night)
- Toner/Serum
- Ageless Line – for more mature skin
- hand and body restore cream (retinol)
- wrinkle recovery serum (retinol)
- detox nightwear cream for age spots
- Stress relief – for redness or acne-prone skin
- CC Serum (vitamin c)
- oil cleanser – great for oil product because oil counters oil
- fresh tea face mist toner
- charcoal mask
- Sensitive Skin Solutions – more natural, fragrance-free options for redness or irritation
- Cucumber eye gel – for cooling
- CC Serum
- Detox nightwear cream
- all-natural oil cleanser
- Hair Remedies – for salons or men’s care to offer
- Biotin hair boost
- Cold brew beard oil
- Lash and brow serum
Many retailers are also jumping on the subscription box trend. This is just another way to bundle products, and one that can significantly boost revenue if done correctly.
Finally, market your bundles! Get the word out wherever you can, whether that means promoting the cost savings on your website or displaying bundled products at the checkout counter, where your staff can easily remind customers of their value. And if you do have a website, consider creating a page just for bundles.
At the end of the day, it all comes down to value perception.
As long as your customers believe your product bundles have value, in the sense that they both meet their health and beauty needs and save them money, you can rest assured they will bring in added revenue for your spa, salon, or boutique.
At Onoxa, we love bundles so much that we offer a bundled sample kit to help you get started on launching your own custom-branded beauty line. The best part? You get to choose which products you receive! In addition to four full-size products tailored to your brand, you’ll receive free label design, ongoing support, and exclusive access to new product launches and promotions. Get started today.
Questions about who we are and how it works? Call Onoxa today at 888-688-2991 or email hello@onoxa.com for more information.
The post Why, When, and How to Bundle Your Custom-Branded Products appeared first on ONOXA.
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