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Service and Product Bundling: How to Bundle Efficiently

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Paul Towne



5 min

Service and product bundling is a game-changing sales strategy. It predicts client needs, so you deliver a compelling, comprehensive solution every time. By understanding it’s appeal and implementing it strategically, you can unlock increased sales, client loyalty, and business growth.

Yet, the process of quoting bundles can feel like wandering through a maze. Confusing and requiring too much understanding, too many experts and too many delays.

In this blog, we look at service and product bundling as a competitive strategy. And share how to remove the roadblocks that hinder bundling as an effective business strategy. 

What is Service and Product Bundling?

Bundling is a marketing and sales strategy that combines relevant products and services as a single solution. Done well, bundling can increase sales and revenue by appealing to client's broader needs with a single solution.

Imagine this: a customer wants a product. Traditionally, they’d call for a quote, and you’d help them understand and select the appropriate options, other relevant products, and maintenance services. What if instead they discovered a pre-configured bundle that included the right products and the right maintenance services at a discounted price? This is the sales power of bundling.

Just remember: a product bundling strategy is more than simply pairing products and services together. Effective bundling requires creating strategic packages that offer enhanced value for you and your clients.

Psychology of Product Bundling

Clients crave clarity and solutions that address their specific needs. Enter service and product bundling as a competitive edge. Compelling bundles deliver exceptional value without the hassle of piecing together solutions. Transforming you from just another vendor into a go-to trusted partner.
By delivering value without the hassle, you stand out from the competition.

By streamlining the buying process, you attract more clients.

  • Enhanced Value Perception. Clients see bundles as cohesive solutions. Often at a discounted price, compared to buying individual components. This perception motivates them to select the bundle, boosting sales.
  • Buying Convenience. Clients value the simplicity of bundling. It saves them precious time and effort, instead of searching and working with different vendors. This boosts satisfaction and accelerates sales cycles.
  • Upselling & Cross-Selling. Bundles create an opportunity to upsell and cross sell. When the bundle clearly solves their problem, clients are more open to considering extra features and add-on services.
  • Competitive Edge. Bundling distinguishes you from competitors offering similar services and products. By crafting unique, value-driven bundles, you attract new clients looking for comprehensive solutions.

Benefits of Product Bundling

Businesses are always looking for ways to stand out, to increase sales and build stronger client relationships. By carefully considering your target buyers you can craft compelling bundles that align with their needs. And you can unlock a treasure trove of advantages for your business.

  • Increased Sales: Bundles encourage clients to spend more, especially if they were only planning to purchase one item. By offering a compelling combination at a discounted price, you encourage them to explore additional items. Items they need but may not have considered. 
  • Client Loyalty: Bundles can build stronger client relationships by providing a sense of value and convenience. They demonstrate you understand their needs, and are committed to providing one-stop-shop, comprehensive solutions. This builds stronger, more loyal client relationships.
  • Brand Awareness: Bundling allows you to showcase multiple products or services under one umbrella, increasing brand awareness for each. This creates opportunities to introduce clients to offerings they may not have been aware of individually. This fosters a more positive brand perception, encouraging them to return for future purchases.

Product Bundling Examples

The power of bundling transcends industry. From solar panels to the workshops of manufacturing, bundling is a win-win, no matter what business you are in.

  • Manufacturing: Service and product bundling simplifies the buying process, saving clients, and you, valuable time and resources. It also introduce client's to important services that can often be an afterthought. Such as preventative maintenance that can reduce downtime.
  • Energy & Renewables: Product and service bundling makes you easier to buy from. For example, offering wind turbines and installation with maintenance services and expert response time. Or, bundling energy-saving technologies with installation offers a clearer return on investment.
  • Construction: Combining engineering design, materials procurement, and construction services provides a cost-effective option for clients. A single, experienced team handles all aspects of the project. A single team reduces communication errors for a smoother, more predictable timeline.
  • Government Contracting: Bundling contracts simplifies budgeting and procurement. It also promotes often used services while making them easier to track for transparency and resource use. This also boosts your image as a problem-solver, fostering trust.

Mistakes to Avoid in Product Bundling

The benefits of service and product bundling are clear. In fact, studies suggest that bundles create a "sticky" experience that can increase average order value and client retention.

Now, imagine spending hours bundling for each quote; lost in a maze of data entry, pricing errors and delays. The clock ticks as clients wait and you correct yet another quote for approval. That's the down side to bundling: manual effort. Because manual effort can quickly turn this smart strategy into a frustrating maze of workarounds and delays.

Here are some best practices that will help you avoid the bundling roadblocks:

  • Offer Precision and Value. Design bundles that resonate with specific needs, for example industry and purchasing habit. Integrate quoting with your CRM to leverage data that helps you cater to their needs.
  • Ditch Dead End Errors. Stop wasting time and resources on manual effort and correcting manual mistakes. And the expert reviews required along the way. Automate service and product bundles based on predefined configuration variables and rules.
  • Deliver Competitive Pricing. Consider tiered bundles that open the door to upselling. Or Limited Time bundles that create a sense of urgency. Automate pricing based on predefined rules to avoid underselling and protect margins.
  • Embrace Efficiency. Swap spreadsheets, manual effort and expert calls for pre-defined rules and self-guided quoting. Integrate quoting with ERP invoicing to remove errors there, and improve cash flow.

The Takeaway

Service and product bundling is a powerful strategy that benefits both businesses and clients. Combining value-driven bundles with automation creates a seamless sales process and a stand-out client experience.

Learn how product bundling software XaitCPQ streamlines service and product bundling, swapping manual effort, errors and workarounds for bundling speed and accuracy.

Related article: Learn how Fabtek, a leading American manufacturer, reduced quoting time by 50% with XaitCPQ.

XaitCPQ - Configure Price Quote (CPQ) software

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Paul Towne

Paul, has been entrusted with helping to grow the North American market for XaitCPQ. He has more than 15 years of successful experience as an entrepreneur and senior sales leader in technology and financial services. He enjoys almost any outdoor activity as well as extolling the virtues of vinyl compared to digital music with anyone who will listen. Paul is a graduate of the University of Massachusetts and lives in Boston with his wife and two kids whom they love dearly even though they regularly demolish their house, eat all of their food, and never let them sleep.

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