Packaging products and services is essential
strategy these days. And when I say
not referring to Corn Flakes boxes. I mean packaging
products and services into product bundles. If you
haven't noticed the abundance of product bundles and
me list a few examples for you.
- The value meal you bought at McDonald's is a
bundle slightly discounted from ala carte
pricing, to entice multiple purchases opposed
to "onesy" buying.
- The new computer (C.P.U.) you bought probably
was included in a bundled package of monitor,
keyboard, printer, mouse and assorted software.
Slightly better pricing than buying all items at
regular list price prompted you to buy
than you actually intended.
- The health club membership you bought was for
12 weeks and included a session or two with a
personal trainer and a consulting session with a
dietician. The pricing made the package deal a
bargain with the extras as opposed to "pay as
So what's the big deal about bundling into packages?
The big deal is more profit for your bottom
big deal is more revenue per customer. The
is more profit from fewer customers.
If your horse business is stuck with the single unit
pricing methodology think about making some
changes to sell bundled services.
Your lesson program is an obvious place to start.
I talked with long time professional horseman Reinhard
Pine Plains, NY about bundled lesson programs.
In a prior position as a farm manager, he adopted a
systematic approach for reviving a week by week
lesson program in financial shambles. He divided the
year into seven week "semesters". Each semester
was six weeks of instruction and one week available
as a make up week. Terms were simple: pay up front,
show up same time, same channel each week. Make
ups available, otherwise use it or lose it.
Reinhard advises to start semesters on January 1
of each year to make a riding lesson package an easy
gift purchase in December.
There is nothing new about this; many
have been using this type of program
with excellent results for years. For the others, I
suspect many will benefit with this bundling strategy.
Unless you happen to like and enjoy these
pay as you go lesson questions:
"Can I pay you next week for this lesson and
"I can't come for two weeks, will
hold my spot?",
"Sorry, I forgot to
you about this week's lesson appointment."
Consumers are well conditioned to bundled
-You can't buy youth soccer league participation
-You can't pay for a college
days you choose to attend,
even consider anything but a bundle of classes at
Continuing with this theme, what else can you
bundle in your business?
*An "owner lesson" each week with their horses also
enrolled in a training program,
with an adult lesson package
horse show" for students at the close of a lesson
Better profits can start with packaged value deals to
up sell your existing clients.