When it comes to implementing product or Bundling Systems, effective pricing and inventory management are key to success. Bundling can drive sales, increase customer loyalty and provide a competitive advantage, but it requires careful analysis and execution to be successful.

Many commercial organizations have found that bundling reduces their total costs and improves their performance, so the Air Force is considering bundling some of its services as well. But federal organizations have a different challenge: They must determine how to make the best decisions about when and which services to bundle, and they must do so in a way that is useful to them and justifiable to the Small Business Administration (SBA).

Case Studies: Success Stories of Bundling System Implementation

This paper equips project stakeholders with the information they need to make sound bundling decisions and capitalize on these benefits. It discusses the various approaches to bundling, from offering a single-device price with a bundle discount to forcing multi-device prices (and designing the associated bundle prices), and provides intuition on how these designs differ in their effect on demand and pricing.

The paper also offers a suggested methodology for making the bundling decision, including a streamlined request for information to help elicit credible data from providers about potential savings and service improvements that can be achieved through bundling, as well as opportunities for small businesses to participate in bundled projects. This methodology will help the Air Force develop a process for deciding when to bundle and how, in a manner that satisfies both the needs of its customers and the requirements of SBA-supported 2000 legislation supporting small businesses.