Bundling

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DEFINITION of 'Bundling'

A marketing strategy that joins products or services together in order to sell them as a single combined unit. Bundling allows the convenient purchase of several products and/or services from one company. The products and services are usually related, but they can also consist of dissimilar products which appeal to one group of customers.

BREAKING DOWN 'Bundling'

Not all providers will mention bundling as an option to their customers; therefore, it is important to check whether you can bundle services together. Bundled services will often save consumers money.

For example, if you have two insurance policies (home and auto) through two separate companies, you might be able to bundle both policies together using only one company and reduce the total monthly payments. Bundling can also be used to switch several payments into one, making bill payments easier, even if it doesn't save money.

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RELATED FAQS
  1. What are the differences between product bundling and product lines?

    The difference between product bundling and product lines is a product line is a group of related products manufactured by ... Read Full Answer >>
  2. How rapidly can expanding sales reduce a firm's earnings?

    In order to operate and make money, a company must spend money. Revenue - the dollar amount of sales - can be seen on a company's ... Read Full Answer >>
  3. What happens if my insurance claim falls below the deductible level?

    Though the ins and outs of health insurance are often confusing, the concept of the insurance deductible is relatively straightforward. ... Read Full Answer >>
  4. How is the deductible I paid for my insurance claim treated for tax purposes?

    The deductible you pay on your health insurance policy may be tax-deductible if you meet certain conditions. However, whether ... Read Full Answer >>
  5. How does a long tail become profitable?

    A long tail becomes profitable because the costs to produce, market and distribute a product or service in a niche are low, ... Read Full Answer >>
  6. What are the main factors that impact share prices in the insurance sector?

    The main factors that impact share prices in the insurance sector are interest rates, earnings and actuarial risk. In the ... Read Full Answer >>

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