When Should Small Businesses Consider Opting For Bundle Pricing?

Here’s what small businesses need to consider before jumping into the bundle pricing realm to ensure profits and consumer satisfaction.


Bundle pricing, also known as product-bundle pricing, is a strategy retailers use to sell large quantities of high-quality products by offering discounts to consumers. Through bundle pricing, retailers offer many different products as part of a single package and then offer them at a lower price than the cost of buying those products individually.

This pricing method is standard among online retailers. Competitive flat rates under bundle pricing are a great way to promote more products, get noticed, and engage with the audience in an enticing way.

How does bundle pricing work?

Bundle pricing is the practice of selling a group of products as a package. The aim is to make shopping easier for the consumer and put together the related products at discounted prices.

This can be beneficial to the business as more products are sold. Small businesses are encouraged to use bundle pricing as it is a good business model for starting fresh. Bundled pricing is a great way to increase product shipments, stock-keeping units (SKUs) with low success rates and give more value to consumers.

Compatible for Small, Medium and Micro enterprises

Bundling is typical in the e-commerce and retail sectors. For this reason, newer and smaller e-commerce sites often offer product packages with cheap or discounted items.

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Bundle pricing works because 'price' is the most critical aspect for a customer while engaging in any transaction.

In a transaction where customers get bundled pricing, they feel comfortable getting a lot for less rather than paying more for individual entities. This sensation works everywhere – in the FMCG sector, clothes, crafts, telecom services, food and restaurants, and so many more.

Which Indian industries use bundle pricing?

Indian consumer goods companies are the most significant users of bundle pricing. They offer bundled prices for various products for daily use. They do this at several levels, including the B2C, B2B and D2C levels.

The value pool created by this pricing ensures that consumers and retailers get their money’s worth. Small businesses like department stores, clothing stores, thrift stores, etc., often use bundled prices to move their products and gain traction.

Pros and cons – what to do and what not to?

Bundled pricing has both advantages and disadvantages. On the one hand, this is an excellent strategy to use if the company wants to launch products faster or offer customers a higher discount. This pricing method drastically reduces marketing and selling costs. With personalized pricing and product simplification, all types of businesses can use it to accelerate transactions.

However, if poorly used, bundle pricing can do more harm than good to a brand. In some cases, bundled pricing can harm popular products when put against discounted and packaged products. There is always the risk that consumers will reject the product packaging because it does not meet their wishes. Ultimately, entrepreneurs need to develop a solid strategy to create value without compromising the company’s image.

Therefore, SMEs operating in all sectors should take a hybrid approach, applying flat rates to specific products based on customer demand and differentiating other products based on this. This allows them to experiment with the most suitable sales techniques and build a good customer base.

Aakash Sharma
Aakash Sharma
Aakash writes on Startup Ecosystem, Policies, Legal and Regulatory aspects of business planning. An alumnus of Delhi University, he is assistant editor at Dutch Uncles.

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