Monday, June 17, 2024
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Bundle Up For Better Sales [Combo Discounts]

Do you offer combo discounts?  A lot of major chains are now bundling items as a way to increase their sales.  They are promoting combos that encourage their customers to buy more in an effort to take advantage of the discount.

It’s the “Value Meal” idea that fast food restaurants have been using for years.  Add fries and a soft drink to the sandwich, and price it at a discount. Now instead of just getting the sandwich sale, you are also increasing the sale of the add-on items; items that typically have a high profit margin.

Think about it: What is the highest profit margin item you sell.  For many restaurants it is fountain drinks. If you can convince people to ad a fountain drink on to their order you make more money.  Even with a big discount on the price, it is still profitable.

I’ve written before about “perceived value.”  If the customer thinks they are getting a deal, they will see it as a value.  If the value is great enough, they will spend more in order to take advantage.  If the value as seen as being better than your competition, they will come to you instead of going elsewhere.

Take advantage of the chance to beat your competition by offering better value combos.  Bundling is popular because it works.

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