Packaging or bundling is just as the name implies. Packaging your products or services into bundles. Examples of this include combo or full meal deals at restaurants or day at the spa packages that include several services including a manicure, pedicure, facial or massage. Bundling became popular when wedding photographers used low, medium and high end price packages to bundle their time, number of photographs, number of venues to take pictures and introduce and popularize engagement photos. The key strategy is to position the middle offer as the most appealing as most customers will buy the mid-range price point.
Creating bundle serve several purposes that are shown here. An older or dated product that is not selling can be bundled in with popular fast moving items. A new product can be introduced and marketed as part of a bundle. The financial benefit is that instead of a customer purchasing just one service they will buy multiple services and increase the dollar value of the average sale.
The other advantage gained by bundling is efficiency. Instead of having 8 customer appointments at 1 hour each, 4 customer appointments at 2 hours each is better and even better would be 1 customer spending a whole 8 hours at the spa. The fewer the customers, the fewer the amount of time recording the transaction and setting up the rooms. As customers lives become busier, they will demand less frequent visits with more services provided at each visit.