Customers and pricing
Bundling
Selling several products together for one price.
Facts checked against sources onWhat does Bundling mean?
Bundling sells products together, often for less than their separate prices, such as a phone plan that includes streaming. It can raise total revenue when customers value the parts differently, but it can also hide which parts customers really want.
Where does it come up in case interview prep?
- Business models: who pays, and for whatLesson in How industries work: the toolkit
- Using this in a case: growth and new product casesLesson in Customers and growth: the economics of marketing
- How media, streaming, and gaming make moneyLesson in Media, streaming, gaming, and advertising
- Software and SaaS: players, trends, regulation, and how to crack the casesLesson in Software and SaaS
- How sports and live events make money, and who does whatLesson in Sports and live events
- How the cybersecurity industry worksLesson in Cybersecurity
- Cybersecurity: players, trends, rules and casesLesson in Cybersecurity
Related terms
- Price discriminationCharging different customers different prices for the same product.
- CannibalizationA new product taking sales from the company's own products.
- TAM, SAM and SOMTotal market, the part you can serve, and the part you can win.
- Market shareOur sales as a share of total market sales.
- Relative market shareOur share divided by the largest competitor's share.
- Penetration rateThe share of potential customers who already use the product.
- Share of walletOur share of what one customer spends in the category.
- ARPU (average revenue per user)Revenue divided by the average number of users.
Learn it in context
See Bundling at work in a lesson from How industries work: the toolkit, with checks as you go.
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