• Everyone says Small Businesses will save the economy? But who’s saving Small Business?

  You and me…and here’s how

  Hire and buy from Small Businesses every Thursday.

> July 15, 2012

But Wait…There’s More! What Infomercials Teach Us About Marketing

Do you find yourself switching channels when infomercials come on? Are you shaking your head at the insanity of sealing a screen door to the bottom of a boat to prove the product’s leak-proof hold? Do you seriously doubt the knives will never need sharpening?

Well, pay attention next time. There are tons of great marketing role models hidden in the set-up of infomercials.

Infomercials are tested and tested again to make sure they work. Every single one is only on the air because it has proven it can create sales. Can you imagine how you’d feel if every time you ran a marketing campaign, people bought? That’s what happens with infomercials. Be envious.

Now it’s not the infomercial itself I want to talk to you about. It’s their practice of bundling multiple products together for one “special” price.

Bundling is a major part of the infomercial strategy, and one you can and should emulate.

The strategy of bundling isn’t limited to the infomercial industry. Speakers do it all the time. Car dealers clump a variety of features together into “luxury” packages. Costco wraps together two cans of tomato sauce that would feed all of Italy, offered for one low price.

While bundling is a great way to create the perception of outstanding value, there are do’s and don’ts you should follow as any old bundle doesn’t produce the desired results. Bundling incorrectly, as research shows, can actually decrease the perception of value and the prospective customer’s willingness to buy.

So let’s do it right:

• If you mix products with different prices/values, establish the value of each individual item first–most importantly, the most expensive one;
• Watch the infomercials and follow their lead; emphasize the additional value brought through the bonus items;
• Avoid mixing a cheap item and an expensive item and just promote it. This is where research shows people will walk away, unwilling to pay as the cheap item actually decreases the perceived value of the bundle.

Establish the value of each item and emphasize its value as we discuss above. Follow the points above to firmly establish the value of each and every item in the bundle.

Bundles can be your friend…if you do them right…or a silent deal killer if you do them wrong. Pay attention to those infomercials as they have spent millions on testing to make sure their product and pricing strategies are spot-on. You really can learn a lot from the crazy Slap Chop™ guy!

Go forth and do great things,

Martha Hanlon and Chris Williams