Bundle pricing
BUNDLE PRICING IS A SIMPLE TECHNIQUE TO COMBINE PRODUCTS AND SELL THOSE AT A LOWER PRICE PER ITEM.
It is a simple pricing technique where you bundle products and sell those at a lower price than you would, if sold separately. The psychology of bundle pricing is built on the consumer surplus. And consumer surplus is created when a consumer can buy same products with a lower price than they would be willing to pay for, if they bought the products separately.ο»Ώ
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As a result bundle pricing is used widely for example in hamburger restaurants. It offers seller an opportunity to sell more. This is done in two ways:
1. The buyer would not necessarily buy all the items offered, if they would need to choose what items to buy
2. The buyer most likely will buy more, if they feel that the more they buy, the more they save
Businesses can simplify their processes better by bundle pricing. In many cases ordering everything separately creates thousands of variations in services, instead of three to four different bundle options, that are offered to the consumer. It also eases the buyer psychologically and simplifies buying.