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What is a bundled product?
When there are 2 standalone items or more than that number which is packaged together for sale, that too based on a single cost, it is referred to a bundled product. If you consider a generalized case, its concept revolves around the factor that individual product can be broken from the package and sold individually.
Why are bundled products important to manufacturers and retailers?
With the help of bundled products and revenue allocation methods assignment help manual, we throw light on the various reasons for manufacturers and retailers to opt for bundled products.
- Manufacturers often strike up a partnership with other producers to assemble their complimentary items. It is only after this procedure that they send those to retailers.
- To hike their sales margin on older items or those merchandises which move slowly in the market, retailers use product bundling methods.
Business advantages associated with product bundling
There are various product bundling and revenue allocation methods. If these methodologies are effectively put, one can see a remarkable hike over time on sales (individual). Growth in profit margin can be somewhere around 15% to 30%. There are also certain corporations who utilize product bundling as a method of selling not so popular items with high selling products.
When does revenue allocation occur?
Revenue distribution usually takes place when a specific revenue object is related to revenues. However, that object is untraceable if searched via any economically feasible method.
Various methodologies revenue distribution to bundled products
Viabundled products and revenue allocation methods homework help manual, our experts make sure that you get the basic understanding of the techniques to distribute revenue to every bundled product.
2 of them are:
- Incremental revenue allocation method
- Separate or standalone revenue allocation method
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