Home furnishing is a multi-billion dollar, highly competitive industry. To stay profitable and attract customers to their e-commerce or physical outlets, furniture businesses implement a variety of strategies to increase sales, retain customers, and boost brand value.
But what if overstocking is the biggest obstacle that’s slowing down your furniture business’s profitability? Sure, it’s great to have various SKUs to cater to the huge public demand for fast furniture in the US, but at times some products can create problems in your inventory management.
Fortunately, for such home furnishing businesses, kitting and bundling is a practical and highly beneficial options.
So if you’re looking to get rid of the overstocked inventory this holiday season, here are some ways kitting and bundling the goods can help you.
Incentivize Customers
Kitting and bundling incentivize customers to spend more without feeling ripped off. Imagine a hotel that charges $20 per night with an additional $15 for amenities and toiletries. Customers will feel ripped off by the additional $15. But the same hotel charges $35 a night with amenities and toiletries included, customers will be happy to spend there.
Offer Better Pricing
Offering competitive prices isn’t always easy. But you have room to play around with your profit margin when you kit multiple SKUs or offer bundles of the same products. This, in turn, allows you to offer a better-than-market price to your customers.
Pair Slow-Moving Products with Popular Goods
Having trouble with inventory management at your furniture store? Start pairing slow-moving products with fast-selling items through kitting and bundling. This will help you sell items that may otherwise stay in the warehouse for a while.
Clear Multiple SKUs in One Go
Kitting allows you to pair products from different categories together and sell as a package. So if you’ve overstocked multiple items that are nearing expiring or need to be moved, kitting and bundling can help you. Unable to sell the new lamps? Pair with the ottomans and sell it out quickly.
Offer Special Promotions
Kitting and bundling is ideal for home furnishing businesses seeking special promotions. From holiday offerings to customer loyalty programs, you can kit and bundle various products to help customers choose packages available only for a certain period.
Simplify Marketing, Packaging, and Order Fulfillment
If you have an online store of furnishing, you must opt for kitting and bundling. From marketing, packaging, and shipping to order fulfillment, all aspects can be simplified with kitting and bundling.
But if you’re unsure about how to opt for kitting and bundling, get in touch with us. At Althea Suite, we offer cloud-based inventory management software and POS software for furniture stores. Learn more today and get started.
