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Smart Packaging

Bundling is a great way to sell premium products

A buyer overwhelmed by design center choices may quickly give up on upgrades, taking whatever comes standard with the house. Many smart builders are fighting that tendency by bundling packages of options in much the same way that car manufacturers do. The most successful and profitable packages are often one step up from builder grade.

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At Ross Mundy Custom Homes in Covington, Ga., buyers purchasing above builder grade can get a package that includes ceramic tile instead of vinyl flooring in kitchens and baths; solid-surface countertops instead of laminate; and appliance packages with a washer, dryer and refrigerator. "We're trying to get to a point where someone who is buying their first home can move in and have everything they need," says President Tim Randolph. "When we put together packages where everything fits together, we find that people spend more money. And the incremental cost these packages add to the home is pennies on the dollar when compared to buying the individual items later on."

Jane Meagher, president of New Jersey-based design center consultant Success Strategies, says the most succesful packages involve the kitchen and bath. One easy, but cost-effective, premium package is a kitchen with a double oven and a cook top instead of a range, plus granite countertops and upgraded cabinets. "The package gives it the illusion of a custom layout, but it's very structured to avoid costly errors," Meagher says.

Other low-cost, high-impact kitchen options include a "convenience package" — with cabinet accessories such as a built-in utensil drawer, recycling bins, pull-out shelves and lazy Susans that make a kitchen easier to use — and an "entertaining package" with upscale touches like glass cabinet fronts, crown molding and corbels.

For the bathroom, it's relatively easy to put together a complete bathroom solution, according to Meagher. The center of the package is an upgraded faucet, combined with coordinating lighting fixtures and bath accessories. Positioning the package as a complete solution resonates with buyers. "People today don't want something half done," says Meagher.

Another attractive step-up in the bathroom is a package that creates a spa-like experience. It can feature such items as massaging shower jets, a heated towel bar and a tower cabinet on the vanity with a concealed appliance garage. These might even be paired with upgraded cabinets, lighting, faucets and flooring.

Packages for other parts of the home include matching finishes for everything from doorknobs and hinges to ceiling fans and lighting fixtures. For example, a builder's standard door hardware might be chrome or bright brass, while the upgrade package material could be brushed nickel or an antique bronze.

According to Meagher, simple packages go a long way toward moving buyers past their hesitancy and leading them to make quicker decisions. "Buyer hesitancy leads to no decision," she says. "We don't want to barely convince them to say yes. We want them so excited that they can't help but say yes!"

In June, we asked you "What are your important influences for learning about new trends in the home?"

Results are:

Magazine and newspaper articles 54%
Advertising 23%
Builders associations 13%
Web sites 10%

Thank you for participating in our online poll.


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