A product or a commodity that consists of two or more items can be termed as a composite item. A retail store might want to combine various items and sell them as a single product or a kit for the customer.
For example, a supermarket could offer a combo of dish washing and washing machine detergent at a reduced price of Rs. 400. So here, both these detergents form a composite item that customers can purchase together.
Composite Item = Dishwasher detergent + Washing machine detergent
This product can further be customized with the help of bundling, which allows a customer to add new items or services that they might prefer.
Bundling can be defined as grouping different items together in the desired quantity to produce a single product.
For example, since the detergent combo discussed above is highly preferred by customers, the manager could decide to add a fabric conditioner and offer a 10% discount coupon, thereby forming a bundle: Detergent value pack.
Detergent Value Pack = Dishwasher detergent + Washing machine detergent + Fabric conditioner + 10% discount coupon.
One of the major goals any retail business will have is to generate profitable revenue, and one of the simplest methodologies that business follows is product bundling. A well-curated set of products will attract more customers.
There are two major factors a customer will consider before buying an item:
- The necessity or requirement:
When the items in a bundle are seldom used by customers, they might feel that the combo does not satisfy their requirements and move on. So, analyze the buying pattern of customers and group those items together. - Price:
Customers are more inclined to purchase a product when the price of the combo is less than the total price of the individual items.
For example, say you need to purchase a plate, glass tumbler, and spoon. A store offers all the three items at the following prices:
- Plate - Rs. 200
- Spoon - Rs. 90
- Glass Tumbler - Rs. 90
When purchased individually, the items total to Rs. 380.
The store also has a dinner set combo, which has Place + Spoon + Glass Tumbler + Coffee Mugs for Rs. 300.
Which one would you choose?
Definitely the dinner set combo, because it has all the items that you need at a reduced price.
Enabling the Composite Items module
In order to create composite items, the module has to be enabled from the Item preferences page.
To enable the composite items module:
- Go to Settings > Preferences > Items.
- In the Composite Items section, click the Enable Composite Items checkbox.
- Click Save.
