Bundle Boxes vs. Specialty Cuts? Here’s the Data on What Works Best!
More Americans are looking online for high-quality, local food options. With 3 in 5 Americans now regularly purchasing their groceries online, it’s essential that Farms are catering to buyers’ expectations of convenience.
As more Farmers are using online channels to expand business operations with direct-to-market sales, the question most commonly posed is, “What works best to increase sales for my Farm?” With millions of page views every month across 1000’s of Farms in all 50 states - we analyze a lot of data at Barn2Door and know which tactics and practices lead to Farm success.
While every Farm may have differences of opinion on inventory mix, pricing, and packaging - the data is unbiased:
Bundle Boxes are the Clear Winner
Farms offering Bundle Box Subscriptions drive 2x more revenue than Farms that do not. Why? Buyers prefer easy, convenient choices when it comes to purchasing, and customers will keep eating every day. Because of this, they want Farm Subscriptions to receive consistent access to Farm products and lock in purchase prices (as inflationary concerns loom).
The most successful Farms on Barn2Door offer a range of 3 to 7 Bundle Box options. When Farmers bundle multiple items together into a single unit of sale, they see higher conversions and move more inventory items overall. One of the best tips is to only offer Specialty Products in Bundle formats. Therefore, customers must purchase a Bundle Box if they want a highly desirable item (bacon, filet mignon, huckleberries, Alaskan salmon, etc.).
So, why do bundles work? When there are too many options in your store, buyers can face “choice paralysis,” where it’s difficult to make a purchase decision. By offering Bundle Boxes, customers are more likely to purchase knowing that they can receive access to multiple Farm products. In turn, Farms move more inventory items and enjoy larger average order sizes.
For example, if you are a pork Farmer, only offer bacon with a 10-lb monthly Subscription box. If you’re a produce Farmer and always have buttercup, romaine, or green-leaf lettuce on hand, then consider offering a baseline 5-lb Salad Mix Subscription box. Your goal should be to make the bundle attractive while moving all your products.
With ⅓ of Americans living alone, ⅓ with 2 people, and ⅓ with 4+ people, the most successful Farms always offer a Bundle Box that appeals to various household sizes. If you’re a Rancher, do NOT limit your inventory to quarter, half, or whole, and specialty cuts. Most Americans don’t have the freezer space (less than 5% of Americans own a chest freezer) therefore, you’re narrowing your sales. As more than 99% of Americans have a refrigerator/freezer combo that can accommodate 5 to 10 pounds of frozen product, you should package your Bundles accordingly. Keep bundles to under 20lbs as the most successful Farms build 5lbs, 10lbs, and 15lbs boxes to move more product consistently.
The key to improving conversion is your branding and packaging. Customers are attracted to a Farm brand they can relate to and packaging that meets their needs. Both of these factors are essential to increase the appeal of your products and keep your Farm top of mind. Consider how your Bundles can be an experience for your buyers. Examples might include a breakfast sampler, a griller’s delight, power-microgreens, super-foods vegetable box, berry-lover trays, and soup-maker starter kits.
Customers want items that fit their lifestyle and are convenient to buy. Building boxes that offer different experiences will meet more of your customers' needs and drive higher conversion rates. Good food and great meals are an emotional experience, so capitalize on triggering those emotional responses to prompt recurring sales for your Farm.
Leverage Speciality Products in Bundle Boxes
When it comes to profit-driving motives for your Farm, a small selection of premium specialty products can attract buyers and serve as a high-margin one-time purchase or add-on to a Bundle Box. While buyers prefer the convenience of bundles for everyday purchases, specialty products are exactly that—for a special occasion (e.g., bone-in tomahawk steak) or only available during a special short season (e.g., huckleberries).
Farmers with <50 items in their store generate MORE revenue than Farmers with a huge selection of individual items. Too often, Farmers make the mistake of listing every item individually, which overwhelms buyers and leaves the Farmers stranded with left-over products that go to waste or into a deep freeze. Despite surveys indicating that buyers want more choices, actual Farm sales data is just the opposite - offer fewer products and make more money.
Buyers will pay a premium for Specialty Products. However, not every item is worth the effort to sell individually when factoring in the labor and time to package, sell, and fulfill the order. The trick is to decide which products your customers perceive as the highest value and offer a limited number of individual products to focus their attention (and increase conversion). And focus on the value of the product that a buyer is willing to pay, not the price per pound.
It’s important to consider offering Specialty products only in Bundle Boxes, as add-ons, or through Gated Items. That way, you’ll move more inventory items overall, drive larger order sizes, and reduce the amount of inventory consistently left in your freezers.
Keep in mind that convenience is king, so leveraging Bundles to feed buyers regularly, while offering a few Specialty Products at a premium is an ideal combination to attract customers and build a loyal purchasing pattern.
Increase Sales and Save Time & Money for your Farm
Evolving how your Farm conducts business can be intimidating. It’s best to start small and experiment. The market is constantly changing, and it’s essential to adapt and grow to increase sales and save time and money.
Barn2Door provides an all-in-one solution to grow and manage your Farm business. If you’re curious to learn why successful Farms run on Barn2Door, watch this 5-minute video.