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How Bundling Benefits Sellers and Buyers
Bundling makes sense for businesses whenever the cost of adding additional features is lower than the additional sales generated thereby—even if most purchasers do not value or use all the features in a product bundle.
David S. Evans • Invisible Engines: How Software Platforms Drive Innovation and Transform Industries
Bundling is a tailwind to sales conversations. Why pay $30 per employee per month for five different products ($150) if you can get a comparable offering in a single bundle for $50? And companies with smaller budgets can buy additional products that were out of reach as point solutions. This is one of the few true accumulating advantages in softwar... See more
John Luttig • Rippling and the Return of Ambition
Alex Wittenberg added
The ability to select bundles of features to sell helps firms segment their customers, control costs, and enhance profits. Bundled products offer consumers convenience, lower costs, and products tailored to their needs and wants.
David S. Evans • Invisible Engines: How Software Platforms Drive Innovation and Transform Industries
And as soon as a bundle is partially unbundled, there are two options: stop offering the part of the bundle that now has a competing single-purpose product, at which point the bundle switches from optimally-priced to overpriced, or keep offering it and accept lower margins. Bundles grow gracefully and shrink painfully.
Byrne Hobart • The Diff | Byrne Hobart | Substack
sari added
Bundling can be used in a different way to facilitate price discrimination, which we discussed in the preceding chapter.14 That is, if different groups of consumers place different values on groups of components, bundles can be designed so that those with stronger demand pay more. The idea is possible to design bundles of components that cause cons
... See moreDavid S. Evans • Invisible Engines: How Software Platforms Drive Innovation and Transform Industries
The bigger a bundle gets, the more likely it is that a subset of users are all paying for basically one piece of the bundle, which could be sold separately at a better price.
Byrne Hobart • The Diff | Byrne Hobart | Substack
sari added
Bundling Features Most goods are bundles of features, many of which could be provided separately but are not. Cars