Packaging products and services is essential
marketing
strategy these days. And when I say
packaging I'm
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
packages,
let
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
more
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
you go",
week by
week.
So what's the big deal about bundling into packages?
The big deal is more profit for your bottom
line. The
big deal is more revenue per customer. The
big deal
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
Teetor of
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
professionals
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
frequent
pay as you go lesson questions:
"Can I pay you next week for this lesson and
next week?",
"I can't come for two weeks, will
you
hold my spot?",
"Sorry, I forgot to
call
you about this week's lesson appointment."
Consumers are well conditioned to bundled
services.
-You can't buy youth soccer league participation
game
by game,
-You can't pay for a college
course by
the
days you choose to attend,
-And you
probably
wouldn't
even consider anything but a bundle of classes at
parachute school.
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,
*a ground
work
seminar
with an adult lesson package
*or a
closed "graduation
horse show" for students at the close of a lesson
semester.
Better profits can start with packaged value deals to
up sell your existing clients.