How can you optimize prices in a changing market?
At a glance:
Bundling and unbundling are how we decide what gets priced together, not just how much to charge.
WHAT IT IS
Bundling means selling multiple products or services for a single combined price – whether that’s a fixed combo or a bundle that sits alongside stand-alone options. Unbundling is separating elements that used to be included in one price (hello, paying for checked bags or seat selection). In practice, we’re deciding which elements are “table stakes” in the core offer, which sit in paid bundles, and which become add-ons.
WHY IT MATTERS
Bundling is one way to answer the question, “How do you create associations and funnels that your competitors can’t?” Thoughtful bundles increase perceived value, cross-sell complementary offers, and boost revenue by capturing more of what a customer is willing to pay than single items alone. They also simplify decisions by curating “good enough” sets so buyers don’t have to assemble everything from scratch. Together, bundling and unbundling define how we monetize an ecosystem.
CASE FILE
McDonald’s Value Meals: Simple Bundle, Big Impact
“The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board… We’ve got to get that fixed.”
— McDonald’s CEO Chris Kempczinski
Setup. As inflation pushed “value perceptions” in the wrong direction, McDonald’s saw demand soften. When customers feel nickel-and-dimed, bundling becomes less about “discounting” and more about restoring a clean, predictable all-in price.
Move. McDonald’s leaned hard into “make it a meal” bundling and scaled national value bundles. They launched the $5 Meal Deal in 2024 before pushing value bundling even more explicitly in 2025: Eight combo meals priced ~15% less than buying items separately, with advertised price points like $5 (breakfast bundle) and $8 (Big Mac-style bundle).
Outcome. Bundling didn’t just “move units,” it improved order economics and reacquired customers. In the weeks after launch, about 25% of McDonald’s customers ordered the $5 bundle; 12% of bundle buyers were lapsed (no visit in 3 months), and ~5% were new. Even better: Orders that included the bundle showed ~12% higher check than orders without it.
Lesson.
Bundling is a perception tool and a basket tool. If customers are reacting to item-by-item sticker shock, simplify the “job” into one price (and make that price visible where decisions happen). Bundle the default path, then measure attach rate, check lift, and lapsed-customer reactivation before you touch list price.
Framework:
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Bundling works best when you want to cross-sell complementary offerings, get more value from price-sensitive customers (think those who might only buy if there’s a “deal”), boost sales for newer or weaker products, or simplify decision-making for your customers.
Takeaway: Use bundles to increase average order value and cement customer loyalty by creating offerings that are unique in the market.
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Bundling doesn’t move the needle if your customers don’t care about your bundles. Ultimately, that means designing bundles around jobs to be done. There are a couple of ways to think about puzzle piecing high-perceived-value bundles together. 1. Combine one or more high-value, in-demand items with some nice-to-have add-ons (low cost to you but high perceived value). 2 GBB bundles can gear bundles to specific customer segments or use cases while keeping your anchor in place.
Takeaway: Also consider how you’re structuring your bundle. A product-let bundle should be simple and fairly rigid. A sales-led bundle can have a little more flexibility around customization.
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There is, unsurprisingly, a balance to pricing a bundle right: The total price has got to be lower than the sum of individual prices, but it can’t be so low that it cannibalizes too many sales at full list price. To find the sweet spot, go back to WTP for the bundle to see where you can draw in new buyers who won’t buy the components separately while still yielding more revenue than a single-product sale.
Takeaway. You’re trying to increase incremental sales and sell items together that customers might not have otherwise bought – that also means you need to ensure the bundled discount has a goal and is justified by volume or strategic goals.
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Unbundling has been a major trend in airlines: services that were once included in the ticket are now priced separately. Ancillary revenues like baggage and seat fees account for billions in revenue, allowing carriers to offer low headline fares while charging heavy or convenience-focused users more. The same logic can fit B2B – unbundling premium support, rush jobs, or specialized reporting can align price to use and cost-to-serve.
Takeaway: Unbundle when certain features drive disproportionate cost or value – let light users pay less and heavy users pay more.
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There are two common failure modes: Bundles that combine items customers don’t see as complementary and bundles that are too complex to evaluate. Customers then ignore the bundle or see it as an attempt to push unwanted items. In regulated or high-trust categories, “junk-fee” style bundling can also damage brand and invite scrutiny.
Takeaway: If a reasonable buyer can’t explain in one sentence why your bundle exists, simplify or scrap it.
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Several industries move back and forth between bundling and unbundling as markets evolve: airlines bundled → unbundled; streaming services moved from individual channels to mega-bundles and are now experimenting with tiered add-ons again. The pattern is simple: Bundle to grow adoption and create a moat; selectively unbundle when you need fairness, transparency, or a new monetization layer.
Takeaway: Treat bundling/unbundling as a cycle, not a one-time decision – revisit structure as costs, competition, and customer expectations change.
OPERATOR CHECKLIST
◻️ We can articulate the job each bundle solves (“what problem is done when they buy this?”), not just list components.
◻️ For every bundle, we know: stand-alone prices, bundle price, implied discount %, and target segment.
◻️ We offer at least one job-complete bundle and a path to buy the core product with add-ons for constrained buyers.
◻️ Any steep bundle discount has a clear goal (trial, cross-sell, share shift) and a measurable KPI (AOV, attach rate, retention).
◻️ We monitor cannibalization: what % of bundle buyers would likely have bought multiple components anyway?
◻️ We track usage of bundled elements in subscriptions; “never used” features trigger redesign or unbundling.
◻️ Finance, sales, and ops agree on which extras should be unbundled and priced to reflect serve-cost (rush, custom, white-glove).
◻️ Pricing and systems enforce clear rules so bundles and add-ons are easy to quote, bill, and explain.
SIGNAL TO WATCH
If customers either 1. Keep asking, “Can I just get X without all the other stuff?” or 2. Buy a giant bundle and then complain they don’t use half of it (your packaging is off).
ONE QUICK ACTION
Pick a core offer and sketch three versions on a page:
A bare-bones “base” (what must be included),
A clear “job-complete” bundle,
And one high-end bundle for heavy users.
Then sanity-check against margin and a real segment that would buy it.
COMMON TRAPS
Kitchen-sink bundles. Tossing weak products into bundles to “help them sell” instead of solving a coherent customer job.
Over-discounted bundles. Pricing the bundle so low it cannibalizes profitable stand-alone or premium tiers.
No unbundled path. Forcing every customer into a bundle when some segments would be happier (and cheaper to serve) with a slimmed-down core.
Confusing structures. Too many bundles, overlapping components, and unclear names – customers give up or default to the cheapest line item.
Hidden-fee bundling. Using bundles or mandatory “packages” to hide surcharges; short-term revenue at the expense of trust and regulatory risk.
Set-and-forget. Never revisiting bundle composition or price, even as usage, costs, and competitors change.
Experiment:
DESIGN CANVAS: BUNDLING & UNBUNDLING
What it’s for: Redesign one product line’s packaging by mapping jobs/segments, drafting bundles and add-ons, and defining 60–90 day hypotheses to validate whether the new structure lifts AOV, attach, mix, and margin without increasing confusion.
Who it’s for: Pricing/PMM + Sales + Ops/Finance leads who can define components and costs and want a practical packaging plan, not a theoretical exercise.
What it does: Creates packaging that matches how customers buy so price aligns to value and cost-to-serve.
Use when you need…
Clarity: Forces packaging to match jobs and makes trade-offs explicit.
Speed: Produces a launchable structure and pricing hypothesis in one session.
Strategic insight: Unbundling reveals which components drive cost/value—and where you should charge separately.
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