How to create and price product service bundles in the Vendasta Marketplace to increase profitsBy Emily Dyrland
Creating product service bundles is a smart way to increase revenue, introduce new products and services to customers, and keep a larger variety of products in rotation. Resellers who choose to bundle products quickly see the effect of cross-selling because customers are now using products that they didn’t know they needed.
Product and service bundles shouldn’t be one size fits all. Different customers need different products at different points in their customer journey. Vendasta has a list of recommended packages that can be used as examples by resellers, but the Marketplace is full of digital products that can be selected and built into a customized bundle.
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The best way to determine which products a prospect needs is with a sales intelligence tool like Vendasta’s Snapshot Report. This report evaluates prospects’ online presence, so resellers can see where they are winning and where they need to improve.
Once the product service bundles have been determined, resellers have to put thought into their pricing strategy. Buying from an online marketplace at wholesale pricing allows businesses to choose appropriate margins for profitable products like SEO services while keeping the resale price reasonable for small and mid-sized business clients. Charge too much and they will likely find a partnership that better suits them elsewhere. Price too low and you may not make a good profit.
Product service bundles and pricing strategies need to be well thought out and sustainable in order to both attract and retain quality clients.
Bundle selling strategies that convert
Marketplace holds over 250 digital solutions that you can start bundle selling for customers however you see fit. Product service bundles are a great way to take advantage of the opportunity to cross-sell different products whether they’re less popular, new, or tried and tested.
Wondering how to start selling bundles? Within Vendasta’s Partner Center, there are recommended packages available to Vendasta partners. These range from the Starter pack up to the Enterprise pack. Within these packages, the products build on one another in an intuitive manner such as starting with SEO and online reputation management tools.
Vendasta partner development managers (PDMs) recommend product and service bundles with a seven-step checklist of solutions.
Fundamentally, if we break down the client’s requirements and map them on Digital Parameters, there are seven pieces to the puzzle.
Arpit Madan’s digital puzzle includes:
- Optimized website: Tools include Website Pro, GoDaddy, and Domains.
- On-site SEO: Tools in Marketplace include Alpha SEO and Boostability SEO.
- Local SEO: Yext Listing Sync Pro and Listing Distribution are both Marketplace tools that help develop authority with search engines.
- Reputation management: The Reputation Management product provides a singular dashboard to manage multiple social media accounts.
- Tracking tool: Executive Report found in Vendasta’s Business App is an automated assessment that gives resellers access to proof-of-performance reporting and data-informed product and service recommendations.
- Social: Marketplace tools include Social Marketing, Social Media Management, GetSocial, and Metricool.
- Ad campaigns: Marketplace products and services include AdCellerant, Digital Advertising Services, and many more options.
These suggestions for product service bundles are ranked from “where to start” up to “ad campaigns” as something that should be last on the list. Running paid advertising before ensuring the website, SEO, and online reputation are all healthy is a sure way to fail and lose customers. If you're wondering how to start selling bundles, this is a great starting point.
Strategy for product and service bundles
There are three key tactics that should be included in a successful product bundling strategy.
- Segment the bundles based on steps of the customer journey.
- Starter: Businesses that are at the beginning of digital adoption.
- Growth: Businesses that need help expanding with digital solutions.
- Pro: Businesses that need more digital options and have a large number of customers.
- Build a balanced product mix.
- Restrict the number of bundles to avoid confusion and provide a better customer experience.
Product bundling for each customer journey step
Throughout the customer journey, small and medium business clients will require different products. At the beginning of their journey, they might need help managing their online reputation and building an SEO strategy. Further along in that same business's customer journey, they might be in a good position to start spending on digital ads.
The key to product bundling for specific steps of the customer journey is to know and understand individual customers' needs. Over time, resellers might see patterns with small and medium businesses that will help in quickly determining their needs. However, it’s crucial to have an initial one-to-one conversation with each customer to determine the right product bundling strategy.
Mix low-selling and fast-moving items as a product bundling strategy
This product bundling strategy will help to move less popular products quickly as a part of an overall bundle. Combine products and services that complement each other and aren’t sold individually. This strategy is a great way to introduce less popular, yet still valuable products to customers.
Restrict the number of product and service bundles available
Cut the clutter with a limited number of product and service bundles. Typically, a finite grouping of products and services will be shared among customers as each reseller will focus on particular customer types. Three to five product service bundles are ideal because it doesn’t confuse customers with too many options, and the bundles should be based on where customers are at in their customer journey.
Product bundle pricing strategy
Product service bundles that are tiered make it easy for businesses to see how they can grow with the available products and services. It simplifies the product bundle pricing strategy by showing a range from a starter bundle to an established business bundle. Tiered bundles can also enable up-selling to the next bundle when a business outgrows its current bundle.
Buy more pay less
The option for SMBs to buy more as a bundle and pay less than they would on individual products gives customers what they need when they need it. This makes for an excellent product bundling pricing strategy. Resellers will sell more products, and their customers will be fully equipped to take care of all their digital needs. This helps small and mid-sized businesses build a well-rounded digital marketing strategy rather than trying to take care of one thing at a time.
Bundle price strategy: Profit margins
Assuming the reseller has done the work, knows their customers, and understands the market landscape, it will be clear what the customer is willing to pay for product service bundles. There is a sweet spot right between the customer underpaying and overpaying for bundles. Vendasta partners selling owned and operated product packages typically have a markup ranging from 60 percent to 80 percent above the wholesale price. This makes bundle selling an excellent option with high profit margins, especially if you use the right product bundle pricing strategy.
Don’t miss an opportunity: Start bundle selling today
This research-based knowledge will give resellers a competitive edge in creating high-value product service bundles and finding the right strategy for product bundling pricing. Keep in mind that product service bundles are not the be-all, end-all of effective reselling. As you evaluate potential customers and offer suitable bundles, don’t miss the opportunity to add extra products when bundle selling, further customizing the customer experience. This shows potential customers that you care about their business and have their unique needs in mind.