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Next, lets look at what would happen if their strategy had been to undercut the competition. To do this they might have lowered their prices on each product by $5. Product A would sell for $5/month, product B for $10/month, and product C would sell for $15/month. What sales would they have made with our four customers? The sales results are here: Joe would buy A and B for a total of $15. Mary would buy only B for $10. Al would buy A and B for $15. Jen would only buy C for $15. By discounting products A, B, and C, their sales would have only been $55/month.
Anchor Bundles The lead app vendor is the owner of the bundle and can completely manage the bundle with regard to subscription cycles, apps in the bundle, revenue-sharing across participating vendors, etc. Co-op Bundles This would be used for a group of vendors or providers and is owned and managed by the group. A group could be a trade association as an example. Partnership Bundles Vendors and providers can partner directly with Kachingle to utilize the Kachingle Platform. Kachingle owns and manages the bundle and works with partners regarding revenue-sharing. White Label Bundles This is the same as an Anchor bundle with the exception that Kachingle remains anonymous for the most part. This would have application to an existing app store. With the Kachingle platform, vendors, by way of being a Kachingle partner, can virtual partner with any other Kachingle partner. Virtual-partnering sidesteps conventional vendor-to-vendor partnering. Each vendor is free to do what they want inside or outside the Kachingle platform as well. Without virtual-partnering companies making combined offerings would need to agree on pricing, revenue splits, marketing strategies, promotions, and sign contracts with every vendor. This is why bundling is difficult for others. But with Kachingle, vendors can virtually partner with each other using a simple API call.
Summary
Bundling is a proven marketing strategy that can help app vendors and content providers realize new sources of revenues. The highly flexible bundling capabilities in Kachingle combined with its unique virtual partnering functionality takes bundling to a new level by allowing digital goods providers to build bundles around their products that include complementary offerings of other Kachingle partners. With Kachingles usage-based revenue sharing and patent-pending micropayment technology, app vendors and content providers have a single platform for discovery, monetization, and billing. To learn more about Kachingle, visit us at http://www.Kachingle.com, or contact Daniel Reid, Director of Business Development at Kachingle. ---------------------------------------------------------
Glossary
Price bundling is a strategy whereby a seller bundles together many different goods/items being sold and offers the entire bundle at a single price. Pure bundling is price bundling where the seller does not offer buyers the option of buying the items separately Mixed bundling is price bundling where the seller offers the items separately at higher individual prices
Multiproduct bundling combines products that satisfy different needs for the consumer, for example, Hasbro Play-Doh bundled with Lucky Charm cereal Cross-Marketing (also referred to as co-marketing) is a partnership of at least two companies with the objective to tap the full potential of a market by bundling specific competences or resources. It is also referred to as marketing alliance, marketing partnership, and co-marketing.
Bundling Interactive Webtour on Pricing. 17. Product mixing pricing strategies. Product bundle pricing.
Artur Shokin Webtour is an overview of every type of pricing general pricing approach, pricing factors, pricing change and strategies.
This encyclopedia entry gives an overview of product bundling and gives examples of how bundling can improve sales to customers with heterogeneous demands.