How to Offer Bundle Pricing for Your ServicesMay 17, 2021
As you grow your business, you might start to see multiple clients who fall under one parent company. And that’s great...but how do you price your services for a situation like this? Bundle pricing can be super helpful in these scenarios.
Offering a bundle discount is a great way to efficiently scale your agency, but honestly, it’s a little confusing to set up when you’re first getting started.
How should you offer bundle pricing? And HOW do you clearly communicate those discounts with your clients to keep things smooth down the road?
How To Set Up Bundle Pricing
Bundle pricing can be a great option. How you set it up is totally your decision, but here are some tips and standard practices.
First, think about your established pricing for one client on a monthly retainer. Bundle pricing applies a slight discount to that retainer cost.
The easiest way to show how to set up bundle pricing is with an example!
Let’s say your regular monthly retainer fee for a client is $5,000 per month. If you’re going to start working with three separate brands under one umbrella company, you have to figure out your pricing.
Of course, if it was three entirely separate brands, you would just charge three individual retainers of that $5,000, giving you a $15,000 total. But since these brands all fall under that one parent company, you could set up bundle pricing and offer a slight discount, like $12,000 total for all three brands.
Why Should You Even Consider A Bundle Pricing Discount?
The main reason you should consider bundle pricing is economies of scale. Basically, if there’s a situation that will save you time, you could consider bundling.
Think about it this way: you are able to pitch all of their brands kind of simultaneously (if they’re related in some way!). Typically, a parent company will have multiple brands under one umbrella that are all in the same niche.
This leads to economies of scale because you can pitch all the brands to the same editors and position them together. There are other advantages, too. Like maybe you only need to build out one media list for all of the brands.
Bundle pricing also helps foster amazing client relationships. By offering that slight discount, you show clients that you’re a true, collaborative partner. You show off the value of choosing you and your agency by doing the work, getting incredible results, and bundling the work together for a discounted rate.
Setting Up Bundle Pricing Requires A TON Of Communication
The most important part of bundle pricing is explicit, clear communication about what the discount is and what it applies to.
If we take that same example of three brands discounted from $15,000 to $12,000 — how does that discount actually stack?
- Is one brand full price and the others discounted?
- Are two full-price and one discounted?
- Are all three equally discounted?
You want to protect yourself in case one of the brands ends up being pulled. No one wants to end up stuck offering bundle pricing or a discount that doesn’t reflect those economies of scale!
Let’s go back to that example $5000 per month retainer.
Let’s say that’s the price for the first brand. When the second brand is added, you apply a $1000 discount. When the third is added, you bump up to a $2000 discount. Make it really clear right off the bat that if one brand gets pulled, the discount reverts—protect yourself!
Just to reiterate, be super specific about bundle pricing, even in your proposal.
Only Offer Bundle Pricing If There’s Brand Overlap
You only want to consider doing this bundled rate if there's actually an overlap between the brands and real economies of scale.
This is a lot more likely when you niche down—that allows you to get into a flow state with all of your clients, become an expert in your niche, and create deep relationships with editors. You know the industry inside and out, which makes it possible to apply a discount for similar, overlapping brands under one parent company.
Honestly, your goal should be to create those economies of scale with ALL of your clients, not just with multiple brands under an umbrella company. Niching down makes a huge impact on your ability to save time and scale successfully.
Another thing to consider for bundle pricing is how much you want to work with those brands.
Will offering an amazing bundle pricing discount help you establish your authority in your niche? Will you be able to gather testimonials and case studies to leverage for even more of your ideal clients down the line?
Basically, assess the value that bundle pricing brings to both you and your clients — holistically!
Offering bundle pricing can be a great way to solidify client relationships, position yourself as an expert in your niche, and experience economies of scale.
But you need to remember to be super clear and specific in how you set this up! Protect yourself and your business by making the right calls about bundle pricing.