The power of bundling – you’ve heard it
before. But whether you regularly offer this
type of promotion or not is the question.
Bundling was kicked off with the fast food
industry’s all-too-famous “Would you like fries with that?” which became a
catch phrase that caught on when chains realized that when customers are
already buying, they are open to purchasing more. Though many businesses have
hopped on the bundle bandwagon as an effective way of up-selling their
customers, regardless of the industry, consumer-spending trends show that
people are more focused on value and what their money can do for them.
The salon industry may have the most lucrative
bundling opportunities of which you (yes, stylists, we’re talking to you) can
take full advantage. Packages that include an added incentive (think gift with
purchase) encourages spending, exposes your clients to new products/services,
moves inventory off your shelves, and increases your bottom line. Make an attractive bundle and show the real
value of it to show your clients the full benefits and exclusivity of the
offer.
For instance, let’s put together a package for
a Brazilian Blowout smoothing treatment, and the Acai Anti-Frizz Shampoo +
Conditioner. For example you charge $250 for the treatment and $70 for the
shampoo + conditioner. Cost conscious
clients may look at that extra price tag and think for $70 it’s a “nice to
have” but not a “need to have” and they’ll just use the care products they
already have at home. Bundling the service and products would not only raise
the overall value of the service but also communicates the benefits of using
the appropriate aftercare to ensure that the treatment lasts as long as
possible. By pricing the bundle at $300, you are still generating a profit by
including the shampoo and conditioner.
Consider this: don’t discount the cost of the
treatment but communicate that you’ll “include the shampoo & conditioner”
to prolong the life of the treatment. Therefore, you can price the bundle at
$300, increasing your ticket while at the same time introducing your client to
products that they will more than likely continue to purchase from you.
Remember, these are products your clients may
have hesitated to purchase, however, they will be more incentivized to purchase
especially if there’s a possibility that the same promotion won’t be available
the next time they come in the salon. The strategy is to increase the volume of
products and services you sell in half the time. The result is in an increase
in your revenue without having to put in the energy to push each of the items
separately.
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