Product Bundling

What is Product Bundling?

Product bundling is a marketing and sales strategy that offers multiple products or services at a discounted price. The intention is to encourage customers to buy more than they would if they only considered purchasing one item.

There are several benefits of product bundling:

  1. It helps increase sales and revenue as customers are more likely to purchase when they feel like they are getting a good deal.
  2. It can help clear out inventory of older or less popular products by bundling them with other items in higher demand.
  3. It can create a sense of urgency and encourage customers to buy before the deal expires.
  4. It can help to build brand loyalty by giving customers more value for their money.

Product bundling allows businesses to create configurable, customizable packages of items that provide more value to the customer. Product bundling can help sales teams create new business opportunities, upsell, and cross-sell products. When product bundling is automated, preset rules and logic ensure that the product bundling is functional and financially viable for the business. 


  • Price bundling
  • Product-bundle pricing
  • Package deal
  • Bulk discounts
  • Packaged pricing
  • Product pairing
  • Buy one, get one

How to Maximize Deal Size With Product Bundling

Product bundling is a great way to maximize deal size. This pricing strategy enables you to increase the value of your deals without increasing prices. In addition, by grouping products or services that complement each other, you can create a more appealing and valuable package for your customers.

There are a few things to keep in mind when bundling products:

  • Make sure the products complement each other. There should be a logical reason for why they are sold together.
  • Keep the bundle affordable. If your bundle is too expensive, customers will be less likely to buy it.
  • Offer different levels of bundling. Some customers may only want a few of the products in the bundle, so offer them the option to buy individual items or customize the bundle.
  • Don’t bundle too many products together. This can make the package seem overwhelming and confusing to customers.
  • Clearly explain the benefits of the bundle. Customers should be able to easily see how the products work together to create value.
  • Offer discounts on the bundle to sweeten the deal and make it more attractive to customers.

By following these tips, you can create product bundles that will increase your average deal size and help you close more sales.

Common Errors in Product Bundling

Product bundling can offer customers convenience and value, but it can also be an error-prone process.

Several potential pitfalls can occur during product bundling. One common mistake is mismatched products. When products that are not compatible or cannot be used together are packaged together it can cause confusion and frustration for customers. Another mistake that can occur is overselling. This happens when a product bundle includes more products than the customer needs and they overspend on unnecessary products.

Finally, product bundling can sometimes lead to hidden costs if the customer is not aware of all the costs associated with a bundle. As a result, the customer may end up paying more than expected. Product bundling can be a great way to offer customers convenience and value. However, it is important to be aware of potential errors. Mismatched products, overselling, and hidden costs can all lead to customer frustration and lost sales.

Automate Product Bundling to Reduce Errors

Product bundling can be time-consuming and challenging to manage and, as we explained above, it is prone to human error. One of the most challenging processes in product bundling is making sure that the products are eligible and correct to bundle together. If a product is placed in a bundle incorrectly, it can lead to a host of negative consequences for the business. 

First, an incompatible bundle will lead to revenue loss due to the product bundle not being financially viable, and it can even lead to the business losing face with the customer. If a customer gets a product they feel isn’t correct or doesn’t make logical sense, they will lose trust in the business. 

Product bundling can also mitigate human error from the customer side. A customer can often be under pressure to make the best buying decision. If presented with various options, choices, and packages, customers can make incorrect decisions that reduce the value of their purchase. 

Salespeople will always take longer and require more resources to create custom and specified packages for individual customers. By using product bundling, not only do you close more deals, but you also create a better experience for the customer. A recent article on Forbes stated that customers appreciate more personalized experiences. Bundling allows you to create a more personalized product for the customer which increases customer satisfaction.  

Automating product bundling is the best option to reduce errors and ensure your customers order the right products. If you are considering automating product bundling, there are a few things to keep in mind. First, you must decide what products you want to bundle together. Second, determine how you want to automate the process. Software is available that uses AI and customer data to recommend the right product bundles to customers. CPQ software is a prime example of a tool to guide your sales reps through the process of selecting the right products and bundles during the quote and ordering process.

Types and Examples of Product Bundles

You will find product bundling in most industries. The most common types are:

  1. Physical product bundles
  2. Digital product bundles
  3. Subscription-based product bundles
  4. Service-based product bundles
  5. Customized product bundles

Physical Product Bundles

Physical product bundles are the most common types of product bundles. They involve bundling together two or more physical products and selling them as a single unit. For example, a company might bundle a camera and a tripod or a printer and paper.

Digital Product Bundles

Digital product bundles are becoming increasingly popular as more products go digital. With digital product bundles, companies bundle together two or more digital products and sell them as a single unit. For example, a company might bundle together a video game and a licensed product key for the game or a software program and a user manual.

Subscription-based Product Bundles 

Subscription-based product bundles are becoming more popular as companies move to subscription-based models. companies bundle together two or more products and sell them as a single unit. For example, a company might bundle a phone and a service plan or a TV and a streaming service.

Service-based Product Bundles

Service-based product bundles are becoming more popular as companies move to service-based models. With service-based product bundles, companies bundle together two or more services and sell them as a single unit. For example, a company might bundle a web hosting service and a domain name registration service or an online storage service and a file-sharing service.

Customized Product Bundles

Customized product bundles are becoming more popular as companies move to customization. Companies bundle two or more products and sell them as a single unit, but customers choose which products they want in the bundle.

Limitations of Product Bundling

While this can be an effective way to boost sales and attract customers, there are also some disadvantages associated with product bundling that businesses should be aware of.

1. Finding the right mix of products to bundle together can be difficult

Consumers may not always want or need all the products in a bundle. This could make them feel like they wasted their money on items they don’t need, which could sour them on the deal. So, it’s vital to carefully select the items to bundle based on product use and customer data. For example, if two products are often purchased together, you may want to consider offering them as a bundle.

2. Bundling can limit consumer choice

Some consumers may prefer mixing and matching products to create their perfect combination. However, when products are bundled, consumers lose this flexibility and freedom of choice.

3. It can be hard to change or add products to a bundle once it’s been created

Once a product bundle has been created, it can be difficult to change or add products without disrupting the entire bundle. This can make it hard to keep up with changing consumer needs and preferences.

4. Product bundles can be challenging to promote

Companies may have difficulty promoting product bundles because they need to explain what the bundle includes and why it’s a good deal clearly and concisely.

5. Bundling can create logistical problems

If a company offers too many different product bundles, keeping track of inventory and fulfilling orders can be difficult, leading to customer frustration and negative reviews.

6. Some consumers may prefer to buy individual products

Some consumers may prefer the freedom and flexibility of buying individual products rather than being limited to a product bundle. This could lead them to choose a competitor over a company that offers product bundles.

7. Define your Product Bundling CPQ strategy

Using CPQ (configure price quote software) can help alleviate some of the issues inherent in using a product bundling strategy. Many businesses see the value of creating customized sales quotations tailored to the buyer’s preferences and needs as this also increases the company’s revenue and growth. To ensure accurate product configurations and pricing are quoted to customers, many sales teams have turned to CPQ to create accurate quotes quickly.    

Implementing product bundling into workflows can become difficult without the correct sales process automation. Adding product bundling to your CPQ strategy allows your sales team to create customized and personalized packages of products that are more valuable to customers. In addition, product bundling in a CPQ strategy leads to increased deal size and volume, as sales reps have more opportunities to upsell and cross-sell.

People Also Ask

Is bundling a pricing strategy?

Bundling is a pricing strategy or discounting strategy, but it can also be used to increase sales of complementary products. When done correctly, bundling can provide customers with a sense of value and allow businesses to boost their bottom line.

What are the two types of bundling?

There are two types of bundling: product bundling and service bundling.

Product bundling is when companies offer two or more products for sale as a single package. For example, a company might sell a computer and printer together as a bundle. Service bundling is when companies offer two or more services for sale as a single package. For example, a company might offer a discount if you buy internet and cable TV services.

What are the customer benefits of product bundling?

There are several potential benefits of product bundling for customers, including:

Convenience: When everything needed can be purchased in a single transaction, it saves time and effort, which is helpful when the products are related and need to be used together, such as a printer and ink cartridges.

Discounts: Customers may be willing to buy a bundle of products even if they don’t need all of them right away if it results in a significant discount. This can lead to long-term savings, as well as immediate gratification.

Loyalty: Product bundling can create a sense of loyalty among customers, as they feel like they are getting a good deal and are being rewarded for their business. Loyalty often leads to repeat purchases and higher customer retention.

Increased value perception: When multiple products are packaged together, it can give the impression that the total package is worth more than the sum of its parts. This can be a powerful marketing tool, as customers may be more likely to purchase a bundle they perceive as a good value.

What is the goal of product bundling?

The most common goal of product bundling is to create more sales opportunities by encouraging customers to buy more than they would if they were only buying one product.