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, upsell your customers! 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!
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.
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.
Our bundle recommendations:
◇ Daily Routine Bundle
– Hydrating Face Moisturizer – for morning use
– Detox Nightwear Cream – for nightly use
– Fresh Tea Face Mist or CC Serum – to combat redness and provide nutrients
◇ Ageless Beauty Bundle
– Hand & Body Restore Cream – all-purpose cream with retinyl palmitate for wrinkles
– Wrinkle Recovery Serum – retinyl palmitate face serum
– Detox Nightwear Cream – to hydrate and help with age spots
◇ Stress Relief Bundle – for redness and acne-prone skin
– CC Serum – immune boost from citrus stems cells repair and help with redness
– Oil Cleanser – Oil counters oil and helps balance the skin
– Fresh Tea Face Mist – evens skin tone and provide nutrients
– Charcoal Mask – draws out impurities and detoxifies
◇ Sensitive Solutions Bundle – more natural, fragrance-free products
– Cucumber Eye Gel – multipurpose, lightweight gel for cooling
– CC Serum – provides Vitamin C to boost skin immunity
– Detox Nightwear Cream – natural, calming lavender cream
– Oil Cleanser – all-natural, multipurpose oil for skin, hair and nails
◇ Men’s Miracle Hair Remedies – a men’s care bundle
– Biotin Hair Boost – helps hair appear thicker
– Cold Brew Beard Oil – for men’s facial hair
◇ Supreme Salon Bundle – a lady’s salon hair package
– Biotin Hair Boost – helps hair appear thicker
– Lash & Brow Serum – helps support growth of lashes
– Shampoo & Conditioners are to come in 2020!
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.