Comments on: The Risks of Unbundled Pricing http://hireheathervilla.com/2009/04/06/the-risks-of-unbundled-pricing/ Business Coach, Consultant and Advisor Thu, 30 Jun 2011 04:32:48 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: The Risks of Unbundled Pricing Heather Villa Implementation | low cost car insurance http://hireheathervilla.com/2009/04/06/the-risks-of-unbundled-pricing/comment-page-1/#comment-87 The Risks of Unbundled Pricing Heather Villa Implementation | low cost car insurance Wed, 17 Jun 2009 04:52:06 +0000 http://hireheathervilla.com/?p=379#comment-87 [...] The Risks of Unbundled Pricing Heather Villa Implementation Posted by root 40 minutes ago (http://hireheathervilla.com) Car manufacturers are notorious for this advertising low priced cars until add ons damage insurance minibar extra luggage all cost something name required e mail required twitter id uri your comment 2009 heather villa implementation specialist all rights Discuss  |  Bury |  News | The Risks of Unbundled Pricing Heather Villa Implementation [...] [...] The Risks of Unbundled Pricing Heather Villa Implementation Posted by root 40 minutes ago (http://hireheathervilla.com) Car manufacturers are notorious for this advertising low priced cars until add ons damage insurance minibar extra luggage all cost something name required e mail required twitter id uri your comment 2009 heather villa implementation specialist all rights Discuss  |  Bury |  News | The Risks of Unbundled Pricing Heather Villa Implementation [...]

]]> By: Rags Srinivasan http://hireheathervilla.com/2009/04/06/the-risks-of-unbundled-pricing/comment-page-1/#comment-17 Rags Srinivasan Mon, 04 May 2009 13:27:05 +0000 http://hireheathervilla.com/?p=379#comment-17 Heather, I theorize that unbundling is more about exposing revenue opportunities. better segmenting your customers and delivering differentiated service. I agree with risks you identify, especially commoditizing the product/service. An airline first-class/business-class service should not be unbundled but can be for the price conscious economy class segment. Another aspect is whether or the unbundling is "true unbundling" or not. If the unbundled components are essential and have to be purchased with the main component, then it is not unbundling.The rental car example you quote is true unbundling if the extras are truly optional. On the other hand if marketers simply show itemized pricing and advertise the price of the stripped down version of their product customers are bound to feel nickel and dimed. The net is, Unbundling should not be applied tactically. Unbundled pricing should be done with customers in mind, delivering them value and in that process increasing profit margin for each customer. Heather,
I theorize that unbundling is more about exposing revenue opportunities. better segmenting your customers and delivering differentiated service. I agree with risks you identify, especially commoditizing the product/service. An airline first-class/business-class service should not be unbundled but can be for the price conscious economy class segment.
Another aspect is whether or the unbundling is “true unbundling” or not. If the unbundled components are essential and have to be purchased with the main component, then it is not unbundling.The rental car example you quote is true unbundling if the extras are truly optional.

On the other hand if marketers simply show itemized pricing and advertise the price of the stripped down version of their product customers are bound to feel nickel and dimed.

The net is, Unbundling should not be applied tactically. Unbundled pricing should be done with customers in mind, delivering them value and in that process increasing profit margin for each customer.

]]> By: Is Unbundled Pricing A Cure All? « Unbundling As a Pricing Strategy http://hireheathervilla.com/2009/04/06/the-risks-of-unbundled-pricing/comment-page-1/#comment-15 Is Unbundled Pricing A Cure All? « Unbundling As a Pricing Strategy Wed, 29 Apr 2009 13:33:18 +0000 http://hireheathervilla.com/?p=379#comment-15 [...] unbundling is not to be shunned as this blogger says : By avoiding the practice of unbundling, you might take a hit in the short [...] [...] unbundling is not to be shunned as this blogger says : By avoiding the practice of unbundling, you might take a hit in the short [...]

]]>