Advantages and disadvantages of centralised services

Many providers offer digital service bundles to their customers; packages including phone, internet and network for example. While it can be simple and convenient to opt for centralised services, we’re taking a deeper look at the true value of business bundles.

What is a bundle?

Bundle pricing is extremely common in most industries – from food, to travel, to digital services. A bundle usually refers to a number of services or products, sold together in one package with one overall price. When it comes to bundle pricing, there’s two main categories to come across.

Pure bundling

Pure bundling

Pure bundling means the services included aren’t available to buy separately from that provider. For example, where some digital providers may offer broadband, networking and telephony services as individually priced purchases, a provider offering these as a pure bundle would only allow you to buy all three together.

Mixed bundling

Mixed bundling

Also known as custom bundling, providers do offer each of their products as separate services - but you can choose to buy them in a bundle for a cheaper price. You may be able to choose the services you’d like to bundle, as well as the level of service. This is usually the most attractive form of bundling to consumers, as it unlocks further value – and providers benefit from centralising your services.

The pros and cons of bundled service packages

When it comes to choosing bundles, there are advantages and disadvantages to getting all of your services in one place. While each organisation and its tech needs will be unique, there are some basic up and downsides to centralising your services. If you’re considering taking up a digital service bundle package for your business, take a look at the pros and cons below.

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Advantages of bundles

 

  • Convenience
  • One point of contact for all of your services
  • May offer more value than buying each service separately from the same provider
  • Access to lesser known or exclusive services
  • Simpler, all-in-one billing
  • Overlapping issues with services can be easily resolved in one place
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Disadvantages of bundles

 

  • Less transparent pricing
  • Potentially more expensive than separate services
  • Provider issues could affect all of your services at once
  • You may have to spend more than you originally planned on pure bundle packages
  • If one element of your bundle is unsatisfactory, you may have to cancel your whole plan or keep the commitment until the end of your contract term
  • You may have to continue paying for a service, even if you don’t require it
  • Your bundled service provider may not be experts in each field they provide services within – for example, broadbands packages from telephony companies
How to know if you're getting the best deal

If you’re thinking of investing in a bundled package – or you already have one – you’ll likely want to know if you’re getting the best deal possible. Aside from comparing plans and prices as you normally would, ensure to jot down the best deals from separate providers, add these together, and compare with the cost of you bundle deal.

If it’s slightly cheaper to have separate services across providers, consider whether the money saved is worth forgoing the convenient advantages of a bundle. If it’s notably more expensive to go for your bundle, and the service quality doesn’t warrant this, take a look at other bundles and deals to be sure.

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Michael Busby Desktop

“I work really closely with my customers to make sure that they are getting the best services for the best price. Some companies will offer bundles which seem to be good value however there may be services included in those bundles that a customer may never utilise. I believe that by offering all services separately including individual call features allows me to create a bespoke package for my customer and their specific needs.”

Michael Busby, Senior Business Sales Executive

For more tech information for your business, take a look at the other helpful articles and resources available at our ThoughtHub. Need to speak to someone? Don’t be afraid to get in touch – we’re always here to help with enquiries about digital services.

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