--- title: "Product bundle: definition, formula and example" description: "Several units sold together at one price, usually below the sum of their prices. It earns more per order because the units share one label." url: https://offersuite.io/glossary/product-bundle updated: 2026-10-13 --- # Product bundle Several units sold together at one price, usually below the sum of their prices. It earns more per order because the units share one label. ## In plain words A product bundle sells several units as one purchase, at a price below what they would cost bought one at a time. It can be several of the same product, or different products that go together. A bundle gives up price and gets back cost. The discount comes off revenue. In return, the order ships once: one label, one base fee, one box. For most small products that saving is larger than the discount, which is why a bundle can be cheaper per unit for the customer and still keep more per order. ## Formula - Bundle price = unit price × units × (1 − bundle discount) - Bundle margin = bundle price − unit costs × units − one order's fulfilment and fees ## Worked example Three $40.00 bags at 15% off sell for $102.00. The engine puts the order's margin at $48.06, against $15.36 for one bag. Per visitor, the bundle can convert 68.0% worse than the single bag and still earn as much. ### The example order A $40.00 bag of coffee, shipped free, every cost counted Revenue $40.00 to contribution margin $15.36 (38.4%) Revenue $40.00 Cost of goods −$12.00 Pick and pack −$1.18 Packaging −$0.50 Shipping label −$7.50 Card fee per order −$0.30 Refunds −$2.00 Card processing −$1.16 Contribution margin $15.36 2 declared kinds cost nothing on this option Computed by the margin engine in Offer Suite's own code, in whole cents, from a $40.00 bag of coffee with a $12.00 unit cost. ## A bundle is not a discount with extra steps A plain discount gives up revenue and saves nothing. A bundle gives up revenue and saves a label and a base fee for every unit after the first. Judge it on margin per order and per visitor. Its discount rate alone says little. ## Using it Set the bundle discount from the fulfilment it saves, then test whether customers take it. Check the parcel: a bundle that outgrows its box or ships in two parcels loses the saving it was built on. And watch who buys it. If the bundle only moves buyers who would have bought twice anyway, it has given a discount for nothing. ## Related - [Glossary **Glossary of offer economics** The terms behind offer profit, defined plainly with their formulas and a worked number: contribution margin, profit per visitor, break-even lift and more.](https://offersuite.io/glossary) - [Calculator **Bundle pricing calculator: shipping, subscriptions** Price a bundle against a single unit, one-time and subscribed, with the shipping and pick costs it saves, and the conversion it can lose and still earn as much.](https://offersuite.io/calculators/bundle-pricing) - [Calculator **Offer option calculator: profit per visitor** Compare up to three offer options on profit per visitor, margin per order times conversion, and see the conversion lift each one needs to match the best.](https://offersuite.io/calculators/offer-option-profit-per-visitor) - [Glossary **Quantity break: definition, formula and example** A discount that deepens as the customer buys more units: buy two, save 10%; buy three, save 15%. Each tier is its own order with its own margin.](https://offersuite.io/glossary/quantity-break) - [Glossary **Fulfilment cost: definition, formula and example** What it costs to get an order out: pick and pack, extra picks, the box and the label. Charged per order or parcel, which is why bundles and gifts change it.](https://offersuite.io/glossary/fulfilment-cost) - [Glossary **Contribution margin per order: definition** The contribution margin of one order, in money. The same product earns a different amount as a single, in a bundle or on a renewal.](https://offersuite.io/glossary/contribution-margin-per-order)