Bundling Product Support Offerings

In a time when competition is tough, it is important for the product support vendors to identify and apply different approaches that will continue to add value to the customer, protect the dealership's margin, and continue to grow their product support business.

Bundling product offerings is common in many other industries. We have seen bundling of products in the cable TV and cell phone markets. Both industries have provided the customers additional product offerings in exchange for special pricing.

It is important for the dealership to provide product support offerings in situations that will make it difficult for the competition to compete at an equal level.

An example of bundling product support offerings would be when competing with a vendor that offers only one product offering (filters, batteries, or ground engaging tools- GET, for example).
Linking special pricing to multiple products and services will make it difficult for specific competitors to compete. This approach also provides additional value to the customer, protects market share across various products, and keeps the competition at a distance.

A similar example is providing a service as part of package being quoted. For example, when quoting an undercarriage repair/replacement, including a machine inspection is a service a vendor that only sells undercarriage will find it difficult to compete. The inspection provides value to the customer, provides potential revenue to the dealership, and clearly separates the capabilities of the dealership and the single source supplier.

The typical dealership has many opportunities to provide bundled products and services. The offerings should be customized to meet the specific customer.