In many industries and demographic regions, companies find themselves in the less than desirable situation of competing on price because their product or service has become so common place and customers are so focused on it. When this occurs, it can be tough for a business to expand and gain market share without squeezing their margins to the point where it becomes unsustainable.
There is another option, however, and it is one that more and more business owners and managers are becoming aware of: product and service bundles. Bundling essentially means putting more than one product or service together into a single offering and it has the effect of removing you from the price arena where all your competitors are.
For instance, even if your business does not position itself solely as a green, environmentally friendly brand, you can still identify ways in which to bring these themes into a separate product/service bundle in order to attract a new sub-niche of customers who will often focus less on price and more on the lower environmental impact.
The great thing about bundles is that very few companies offer them, particularly if your business is very focused within a local area. Being the only company with a special green product or service offering has further advantages such as encouraging customer loyalty which means less of your time is spent quoting ever lower prices to people who have no interest in a profitable, mutual relationship.
Loyal customers are also more likely to recommend your company to a friend or colleague who shares their sustainable viewpoint and personal recommendations are the most powerful of marketing methods. Your chances of converting these new prospects into customers will be significantly higher than normal.
Examples Of Green Bundling
I’m a big believer that any company can create a product or service bundle if they are creative enough and here are just a few examples that I can think of where these value-adding principles could be applied:
Salon customers are generally a very loyal bunch so attracting them away from your competitors can be a little tricky. If, however, you were the only salon in town to offer a completely organic coloring service with all natural dyes, shampoos and conditioners, you could snatch some high paying clients and make them your own. Because you would be the only salon offering the organic service, you could charge a premium over your regular coloring and over your competitors’ prices. You could also give them the opportunity to buy a supply of your organic shampoos and conditioners with every cut or color which gives them even more reasons to keep coming back.
While businesses on the whole still put profit margins above eco credentials, there are a growing number of managers (as you yourself are showing) who see the green angle as an important factor in buying decisions. Therefore it is possible for companies in sectors such as IT hardware to provide a green bundle catering for this active segment. Think about a green learning company who is replacing its stock of staff desktop PCs – they not only want to get a good deal on the most suitable new machines but they are also likely to need a company to take away the old computers and recycle them. Now there are PC recycling companies out there but take a look and see how many of them also sell PCs – not many and even less in individual geographic areas. This means that there are opportunities out there for IT supply companies to package the selling of the new computers and the recycling of the old ones into a quick and easy single quote. This not only solves a potential headache for the customer but it makes them less likely to look solely at the price.
Car dealership forecourts with one or more electric cars on sale are becoming a more common site across the country and potential customers are almost certainly quite green thinking people so bundling the car, eco insurance and environmentally friendly car cleaning products into one deal could make your offer stand head and shoulders above the competition. People are somewhat lazy and might well be willing to spend that little bit extra for the convenience of getting all these motoring elements in one place. There are other things to add too such as green breakdown cover and other maintenance products.
These 3 very different examples show the power of bundling products into an environmentally friendly package and the sheer scope of possibilities available if you sit down and think for a while about what your company can do to distance itself from its competitors and position itself in a whole sector of its own.
An ever increasing number of consumers and businesses now take the environment into consideration when making a purchase and it will be the companies who adopt a green product package early on who will benefit the most from this movement. So next time you find yourself quoting for your products or services solely on price, think about how a product bundle and specifically a green one, could help you escape this unwanted situation.