Floral Management magazine contributor Mark Anderson, who writes the monthly column, The Right Price, said bundling, the practice of combining complementary items (burger, fries and soda — or balloons plus flowers) or products and services (balloons plus flowers and delivery) can be an effective sales pitch to customers used to “free delivery” through Amazon and other online vendors.
“People will buy bundles with things they don’t want and they’ll also purchase larger quantities of the things they do want,” he explained. “In fact, they’ll even choose bundles when they cost more than the total of the component items.”
Rick Rivers of A Floral Boutique in Ormond Beach, Florida, has also seen that phenomenon firsthand. On Mother’s Day, Rivers offers $99, $199 and $299 bundles with some combination of roses, chocolates, a plush toy, and restaurant gift cards.
“They are wildly popular with the ‘get ‘er done’ customers,” he said, adding that many of those customers ended up spending more than if the shop had tried to sell each additional item separately.
Tips from Anderson on how to make bundles work in your shop:
- Get a partner. Other small local business (restaurants, salons, etc.) may be willing to give you discount coupons or small gift cards if you ask. Gift cards for larger chains can be purchased at a 20 to 30 percent discount from face value at Costco, and you can return any that don’t sell. And managers at chains like the Outback may be able to sell you discounted gift cards for promotional purposes if you ask.
- Price it Right. If you are presenting a combo package as a “value” bundle, use charm pricing (prices that end in a nine). Doing so helps ensure consumers will perceive the deal as a bargain. If, however, you are offering a “Signature” bundle use round pricing (prices that end in zero), to make the bundle seem more exclusive and desirable.
A final note, from Anderson: It’s important to remember that many of these customers are shopping for convenience, so don’t make false claims. “Don’t imply delivery is free, because it isn’t — it’s included in the price,” he said. “If a customer thinks that delivery was supposed to be free, the bundle will feel short, like a fast food combo that is missing the fries.”
