Bundle pricing sets one commercial price for a defined combination of products or services rather than pricing each item independently. The bundle may offer a discount, simplify buying or link components that must be delivered together.
How is a bundle price evaluated?
Compare the bundle price with the sum of standalone prices and with the total cost to serve. A lower bundle price is not automatically profitable.
Illustrative bundle calculation
| Calculation step | Amount | What it means |
|---|---|---|
| Sum of standalone prices | $1,200 | Combined price before bundling |
| Bundle price | $1,080 | Price offered for the package |
| Bundle discount | $120 | $1,200 − $1,080 |
| Effective discount rate | 10% | $120 ÷ $1,200 × 100 |
The calculation is illustrative and excludes tax, freight, implementation and changes in the cost of individual components.
Bundle pricing vs. volume pricing
Bundle pricing combines different products or services. Volume pricing changes the price based on the quantity of the same item or defined group. A transaction may use both if the pricing rules state their precedence.
What should the quotation show?
Identify the included components, quantities, optional items, exclusions, bundle price, discount basis and treatment of removals or returns. Avoid hiding a required component behind an undefined package description.
