Individual products with style often warrant the most attention in high-end jewelry sales. A business’s ability to sell an expensive item quickly forms the base of the entire revenue strategy. Product bundles can transform a singular buying decision into higher levels of ongoing success for the jewelry store. It’s not enough to cross sell in order to convince a single buyer to purchase more than one piece. The benefits of product bundling appeal to the aesthetic, emotional, and value-driven sensibilities of luxury consumers without compromising their desire for exclusivity.
Explore the different types of product bundling, determine an effective pricing strategy, and learn how to leverage consumer expectations into a smart personalized recommendation and marketing strategy.
What is product bundling?
Simply put, this is the act of selling multiple pieces of jewelry together in a bundle for one price that delivers value to the customer. Bundles of products can include either a set selection or a variety of different pieces from various categories or price points. Creating these enhances perceived value for customers and therefore benefits the retailers by boosting the average total sale price and moving inventory.
Consider these product bundling strategies to increase item turnover and revenue.
A package deal of a matching selection of products
This is perhaps the most obvious and common type of product bundle. You grouped together pieces that are designed to complement each other such as a necklace, bracelet, and earring set with the same design, theme, metal, and gemstone. Jewelry is often sold in these coordinated box sets, but you can create your own with ease.
To make the bundle more attractive, make sure you have an appropriate box or other container on hand that is special to the group itself. A small velvet drawstring bag with the brand name or logo embroidered on it is always a great option and can fit multiple bundle styles and sizes with ease.
Mix-and-match bundles based on consumer preferences
A more personalized approach to product bundling involves custom collections specifically tailored to the individual. This is where collecting audience information really shines. If you know that a specific person loves white gold and amethysts, you can create a mix-and-match bundle for them specifically.
How do you market this type of price bundling to everyone? Make all shoppers aware of the mix-and-match option where they can choose a pair of earrings, a necklace, and a ring, for example from certain collections to put together and get attractive price savings.
Gift bundles for specific recipients for easier buying decisions
The option to create a seasonal bundle or one specifically tailored to a type of shopper makes sense during certain times of the year. Holiday jewelry or items suitable for Mother’s Day, for example, make buying gifts for others simple. This is also a wonderful way to encourage quick sales to get rid of time-sensitive inventory. Very few people are going to buy a gold necklace that says “mom” after the holiday has passed.
You can come up with a wide variety of mixed bundling options specifically tailored to the type of jewelry you have on hand. For example, combining popular products with unpopular products or low-cost items can increase the perception of value without cutting into your profit margins on individual sales.
Jewelry retailers benefit with product bundling in many ways
Numerous benefits exist from implementing a product bundling strategy. You already understand how consumers view these bundles from the above examples. What do retailers get out of them? The effort it takes to carefully design a bundle of products is paid back quickly as soon as an eager shopper buys the first one.
Price savings lead to increased revenue overall
From a consumer perspective, the point of product bundling is to get more items for a lower cost than they would have to spend if they bought them individually. From the retailer’s perspective, passing on these cost savings actually translates into increased revenue.
People are more likely to spend more when they feel like they are getting a great deal. Someone who may not have considered buying both a bracelet and a necklace will change their mind if one of the items is 30% off. You can create extremely attractive bundles even with a variety of low-cost items grouped together.
Shift overstocked inventory more easily
Unfortunately, every retailer knows the troubles associated with buying too many of a specific product or collection. Some pieces simply don’t move the way you expected them to. The last thing you want is to take a loss on your investment. This presents the perfect opportunity to bundle popular items with additional products that are more difficult to sell. The customers feel like they’re getting more for their money, and you still realize a profit on previously unprofitable goods.
You do need to be careful about using this strategy for product bundling, however. All pieces in the group must complement each other in some way. Puts things with the same color schemes, general design, or purpose together. You can market them as a more casual day option or a limited time special. Don’t make it obvious that you’re trying to shift something unattractive or poor quality alongside more premium pieces.
Provide personalized bundles to boost customer satisfaction
Use the mix-and-match idea outlined above to give customers that feeling of personal care that they appreciate. Guide them through the bundle making process by recommending items they will love or those similar to things they’ve purchased in the past. This is the type of attention that will boost your brand considerably and get people talking about you online and off. The more specific attention you give to each individual, the more impressed they’ll be with your store.
In order to handle all these things and more, you need a powerful software platform like Clientbook. In just a few moments you can access inventory information to see what products you need to push, customer purchases and preferences to define personalized bundles, and use all this data to make smart decisions about your next product bundling strategies. Book a demo to see it in action today.
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