The trick of selling combos, also known as the art of package sales, is a classic strategy of retail trade. That trick is easy to implement, has a high success rate, and can be applied to any industry, any market, any time. More specifically, there is no retail corporation that does not use this tactic.
The reason why? Let’s analyze with Malu how to do the art of package selling.
Refer to the following articles:
– A Guide to Effective Online Sales
– 9 Top Selling Books
– Weaknesses of Sales People
– 9 Reasons for Business Failure
– Effective Sales Closing Tips
Comparative psychology of consumers
Theoretically, combo packs can be created in 2 ways
The first way : Pure combo, must buy a whole set and cannot separate each item.
The second way : Combos are picked up from products that have auxiliary functions and are necessary for each other. Then set a combo price that is cheaper than buying each item individually and then lumping it together. For example brush + toothpaste combo.
Harvard Business School tested to study the results of these 2 combo models. The research was conducted at two sales campaigns of the largest corporation at that time – Nintendo.
The results of that field survey showed: When Nintendo sold pure combos in the first way, the revenue of the corporation immediately dropped by 20%. Many customers have said that Nintendo’s game console is something that can’t be bought. But when this electronics corporation experimented with selling mixed combos (selling game consoles with games), sales hit the $1 million mark with about 100,000 combo packs sold.
Explaining this difference, economic experts said that when customers see a package of many codes going together, they often have the behavior of calculating each item included in the combo package . So when the price of 1 combo is cheaper than the total value of those codes combined, customers will be officially hypnotized.
And of course, if the consumer does not know the value of each product and only knows the price of a combo. Their minds will always form that it is a high price compared to the salary they earn.
Another mentality is that when more than half of the products are needed in a well-packaged package, customers may also buy for convenience. Or more simply, they buy because that combo is beautifully packaged.
Taking advantage of this mentality, many sales managers of big brands constantly “play tricks” with customers through combo packages. The clearest evidence that anyone can see is that FMCG brands such as Lifebuoy, Colgate, Sunlight, Dove… often apply combo packages. For example, buy this and get that, or buy ONE SET of products to get a better price…
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Instructions for applying the art of package selling
Everyone understands that combo selling is selling multiple products together to generate higher revenue, but in order to apply this sales art, the following 5 criteria must be complied with:
1. Enhance product value
Of course in the art of sales, it is not necessary to pick 2 3 products and pack them up to form a combo. Things are not as simple as you think. To come up with a combo package that “can afford” to encourage customers to spend money, you have to really understand their needs.
Or more accurately, you have to “satisfy” the buying needs of customers.
It’s no coincidence that the bottle of Chivas wine comes with a cup, the perfume is boxed with the deodorant, the shampoo is paired with the conditioner, etc. All of this is due to the purchase query of the consumer.
Managers, before creating a combo, must carefully research what products customers tend to buy in the same purchase. From there, we offer packages to “please” them.
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2. Emphasis on thrift
As analyzed in the psychology of customers, customers often have a tendency to calculate what it will be like if they buy each product individually in the combo. So don’t give them time to think if you don’t want them to change their mind. Give consumers the benefit before they count.
How? Big brands still often use the embossed “how much money” or “more ml” to hypnotize that customer. If you don’t believe it, try it out.
3. Sell more at checkout
Have you ever noticed that, at checkout counters of supermarkets or convenience stores, there are always stalls for sundries such as chewing gum, kitkat candy, low-priced fruit cakes…?
Or the cashier often tells you things like “My side is having a promotion for this product today”, “With an invoice of over $xyz thousand like mine, you can buy this product at a low price. offer…”, “Because you bought this product, if you buy another product, you will get another free package…”.
There are too many upsale scenarios given by managers to cashiers that Business Blood cannot tell them all. The feature of this method is that the customer can only reply in a short time. So they only care about how much money they save, but completely ignore whether they need the product or not.
In another perspective, while waiting for payment, a lot of people will have the habit of adding small items such as chewing gum to their shopping cart.
This method is very popular and is applied in all supermarkets and shops. Recently, when the trend of online shopping has developed, businesses have also implemented this method on e-commerce as well.
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4. Strategies must be accompanied by communication
Because selling products in packages means that manufacturers have cut a part of their own profits, it is urgent to take the amount to offset the profit. It is no coincidence that there are many promotional ads on the Internet or on TV. Especially on e-commerce websites, there is also a section for discount promotions.
No one will know that you’re launching a bargain combo pack if you don’t advertise them. Remember, when launching a campaign to sell combos, you must use all means to sell as many combos as possible.
5. Tear an expensive product into a combo of many low-priced products
A study from Stanford University found that when people see a product at too high a price, the brain sends out a signal akin to “pain” to prevent that person from making a purchase decision. .
On the contrary, when consumers see the product at an acceptable price (the value in use corresponds to the price or the product’s price within affordability), then the brain begins to open the door to continue. receive information about that product, then take the next action such as analysis, comparison, selection and purchase.
This method is applied quite clearly in the auto business. The value of a car with a lot of money is often converted into the retail price of many accessories to make it easier for customers to accept. Then include and offer new values such as warranty, insurance, etc. to strengthen the reason for customers to buy.
Studies have shown that applying this approach to high product value categories can significantly increase sales.
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Upsell – Cross-selling – Bundle sales strategy
A variation of the bundle selling tactic is Upsell and Cross-selling :
With Upsell , sellers tend to push customers to choose a premium product/service package over a basic plan. Partly because of the desire for consumers to have a fuller, more advanced experience, partly for businesses to maximize revenue.
With Cross-selling , sellers encourage customers to buy products that complement the main product. Often these types of products are closely related, with complementary uses. Businesses often group them into a separate sales package, selling them at a cheaper price than buying them individually.
This sales method brings many benefits to businesses, such as: Improve customer satisfaction during product experience, maximize sales revenue, save costs (because of the cost of customer care). new customers is much higher than the same cost but with old customers),…
>>> See more: Apply Upsell – Cross-selling to increase sales
Bundle selling is a widely used business art. But now, tricks like these are also becoming difficult when customers can check the price of a product simply with a click of a mouse or a scan of the product code with a phone.
Therefore, apply the package sales formula carefully, methodically and anticipate the customer’s choice.
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