In a package price, we sell a package or set of goods or services for a lower price than we would charge if the customer bought all of them separately. Package pricing can simplify production. Typical package pricing examples include purchasing a car – do you do the 1950-60 start with the chassis and engine and customize every part? Or do you buy off the show floor? Or do you add certain packages like the sport package or the winter package? Do you buy the Value Meal package – burger, fries, and a drink? Or do you order the burger and the drink separately and realize for 20 cents more you could have had the $1.00 fries?

Bundling is the Magic that Boosts Competences

Bundling helps to increase efficiencies, thus reducing marketing and distribution cost. It allows the buyer to look at one single source that offers several solutions, rather than the alternative method of ordering an exhibit from a builder, the carpet and padding from the show, the furniture from a showdesignated provider, shipping the exhibit to the show with a carrier, and then paying an I&D company to install the exhibit. Customers often prefer to achieve a cluster of satisfactions through one purchase. People buy products to solve problems or to address specific needs. If a customer has multiple needs and your product bundle addresses most or all of them, this is convenient for the customer so that they can make one stop instead of many. Saving their time and meeting their budget. Additionally, customers can experience economies of scale when buying by using the package pricing method. If they have a need for the individual components in the bundle, they typically understand that the total price is lower when the products are purchased as a bundle. On the contrary once a package price has been set the removal of one item or set of items may not result in the discount that a client is attempting to achieve.

Here’s How It Works

Example – a client rents a 10’x20’ back wall, a reception counter, an LED screen, 2 sets of meeting tables with 4 chairs each, a literature stand, a header graphic and 3 large wall graphics, carpet & padding; all to be shipped to the show and installed and dismantled. The bill is $12,000. To lower the price the client asks to remove one table and chair set, one of the large graphics, and eliminate the carpet pad. The client believes they will save $2500. However, this was a package and although they might think that the value of the table and chairs, as an example, is $900 – we have only charged $500 for that table and chairs that are within the package. Unbundling can be expensive as can adding in that table and chairs once the order has been packed and shipped to the show. Then people must pull and pack that table and chairs, crate them, ship them and – well, you get the picture. That now just cost $1200. Think twice before you ask for a price breakdown. It is certainly within your rights, but it will quickly escalate your pricing.