What is Upselling?

Bundle sales are sales and pricing methods that bundle two products together. Pure bundling is only one price, and consumers must buy two products at the same time. Mixed tying is a menu-style sales, where companies provide both the option of bundling sales and the option of purchasing one of these products separately. ^[1]

Bundle sale

Bundle sales are sales and pricing methods that bundle two products together. Pure bundling is only one price, and consumers must buy two products at the same time. Mixed tying is a menu-style sales, where companies provide both the option of bundling sales and the option of purchasing one of these products separately. ^[1]

Bundle sale is

Bundle sales are mainly in the following forms:

1. Preferential purchase, when consumers buy product A, they can buy product B at a preferential price than the market;

2. Sell at a unified price, product A and product B are not separately priced, and sold at the unified price after bundling;

3. Uniform packaging for sale, product A and product B are sold in the same package.

Reduce cost of sales

Bundle sales can reduce

Not all companies' products and services can be bundled together at will. The effect of bundling sales to achieve "1 + l> 2" depends on the coordination and mutual promotion of the two commodities, and there is no contradiction that is difficult to coordinate. Therefore, the success of bundle sales depends on the following conditions:

The success of bundling also depends on the development of the right bundling strategy. So, how do companies formulate their strategies?

1. Choosing the right time for joint bundling. Generally speaking, in the fast-growing and best-selling market situation, there are no sales difficulties for enterprise products, so the meaning of bundling is limited. Only those industries with changing market information, structural change and fierce competition

For merchants, bundling can make it a win-win situation.

The price of a bundled product is relatively cheaper than a single item, so that when the product quality and function are similar, consumers who originally intended to buy similar products will instead purchase the product, and originally intended to buy a single item. Consumers of products have increased their purchases, thereby enabling merchants to increase their market share and increase sales. At the same time, because of the large-package sales, many consumers have advanced their consumption during the period. Although this may affect the next period of sales of the merchant, consumers' advances for the next period of consumption actually guarantee the next period of sales. It also accelerated the turnover of funds and improved the efficiency of the use of funds.

In a certain period of time, the market is limited. The increase in the market share of bundled products will inevitably lead to a decrease in market share of similar products and a decline in sales. Purchasing power will decline, which will inevitably lead to the backlog of products of the manufacturing enterprise and difficult capital turnover. If the company is not tolerant, it is likely to go bankrupt.

Although the cost of many products has been reduced with the update of technology, merchants do not reduce the price of products, but sell them in the form of additional costs, that is, gifts to maintain or even obtain higher profits.

Because companies are vying to adopt the same brand or gift-style bundling, bundling is not effective for each company. So companies are trying to find newer forms of bundling. This new form of cooperation has enabled both parties to receive the effect of 1 + 1> 2. ^[2]

Example: Insurance bundle sales in car sales

Regarding this "tie-in" phenomenon in personal credit consumption of automobiles, some people in the legal profession point out that bundled sales are not in compliance with relevant laws. The "Anti-Unfair Competition Law" stipulates that when selling goods, operators must not tie up goods or attach other unreasonable conditions against the buyer's wishes. The relevant provisions of China's Insurance Law clearly state that engaging in insurance activities must follow the principles of voluntariness and good faith. When an insurance company conducts business, it should follow

The author Sanguo was deeply touched by the bundled sales of the book industry. In a column entitled "Book Industry: Bundle Sales Must Clarify Who Should Bundle First", he pointed out that bundled sales are worthy of recognition and widespread application Marketing methods, but the bundled sales of the book industry are excessive commercial speculation, calling for the return of the cultural market to a pure land.