| Author | Nathan Baschez |
|---|---|
| Date | 22 January 2022 |
| Type | General learnings / Ideation |
| Reference URL | https://every.to/divinations/bundle-magic-379035 |
Bundling works because different people assign different willingness to pay to different things
Willingness to pay for five newsletters
Willingness to buy at different prices
Revenue at each price
If this is the case, most newspapers should charge $7-$8 for max. revenue. The total revenue for publishers is $87. If a customer has to buy each one, then the cost would be $43.
But if we can bundle it up and add the total willingness to pay by an individual for that individual ($25), we can earn more i.e. $125. Bundling allows us to eliminate waste.
