Bundling: Definition, Examples, and Prices

Bundling, or bundle pricing, involves selling multiple products or services as a single package at a total price lower than the sum of their individual prices. It is also referred to as a group sale or bundled offer. It is used to increase the average order value, move slow-moving items, and enhance the perceived value of the offer. Example: a set of three skincare products sold for €69 instead of €87 when purchased separately. When structured properly, a bundle improves the overall margin; when poorly calibrated, it cannibalizes more profitable individual sales.

Bundling, group sales, and bundled offers all refer to the same business practice: offering multiple products together at a single price. “Bundling” is the English term used in marketing and pricing; “vente groupée” and “offre groupée” are the common French expressions. A distinction is made, however, between pure bundling—where products are sold only as a set—and mixed bundling—where they remain available separately as well. Cross-selling, which involves suggesting a complementary product without a discount on the set, is a related practice.

To set the price of a bundle, start with the sum of the unit prices and apply a discount that’s significant enough to encourage customers to buy the bundle, without eroding the margin. Three factors are considered: the bundle’s contribution margin must remain higher than that of the individual items it replaces; the discount must be consistent with the value perceived by the customer; and the bundle must not cannibalize sales of the most profitable individual items. In practice, the discount is often within a moderate range and is tested on a limited scale before being rolled out more widely.

Bundling presents three main risks. It can reduce profit margins if the discount offered on the bundle is not offset by additional sales volume. It can cannibalize single-item sales when customers who would have purchased a single product at full price switch to the discounted bundle. Finally, it can give the impression of an artificial discount if the listed reference price has never actually been charged, which is regulated by consumer law. This is why it’s important to simulate the impact of a bundle on the category’s margin before launching it.

The performance of a bundle is measured by the overall margin it generates, not just by its own sales. We track changes in the average basket size, the cross-selling rate among products in the bundle, sales volumes for both bundles and individual items, and the category’s contribution margin before and after the launch. A bundle that sells well but lowers the category’s margin—because it replaces full-price individual sales—is a false success. The comparison is made over equivalent periods, taking into account seasonal and promotional effects.

Almost always, because that’s what justifies the bundle purchase in the customer’s eyes. The discount must, however, remain moderate: a discount that’s too steep attracts customers who would have bought both products separately and erodes profit margins without creating demand. The challenge is to attract those who would have bought only one of the two.

It complicates matters as soon as it becomes more complex. An aisle where unit prices, bulk items, and bundle deals coexist makes comparisons difficult and can foster a sense of deliberate confusion. Displaying the price per unit of measure then becomes essential, and limiting the number of simultaneous pricing strategies becomes a best practice in business.