Sales Packages

Definition

A sales package is a combination of different products that are sold as a whole. The package items can be tangible products, services, or contract items.

A package has a superordinate product that bundles the package components, and is typically composed of various relationships at different hierarchy levels.

Use

Sales packages are used to combine different products into a package that is designed to meet certain customer requirements. Using sales packages provides the following benefits:

  • Different products can be combined based on specified rules.

  • Packages can contain optional components as well as alternative components.

  • Products can be offered as whole, but processed in different follow-up transactions (for example, contracts, sales orders, and service orders).

  • Products can have special prices when offered within a package.

Structure

Packages can contain any of the following:

  • Core products

    For a manufacturer, the core product is a tangible physical object that demonstrates the business’s technical competence, for example, a configurable machine.

  • Rate plans

    A rate plan is an agreement between the service provider and the customer that runs over a certain time period and is typically billed on a recurring basis. Rate plans may have options that the customer can select or deselect based on service usage. Selling rate plans is core to a service provider’s business.

  • Incentive products

    Incentive products are part of the packaged or bundled offering to customers. Incentive products are typically not required, but offering the latest and greatest devices or consumer items at discounted prices is the basis for marketing rate plans or core products to customers.

    Because enabling and incentive products are essential for the sales process, but not part of the contract, they can be viewed as one-time products.

  • Enabling products

    Enabling products are tangible or service products that are related to the core product. They can be optional or required. Selling enabling products is not core business but is required to provide the services in rate plans. Enabling products can be charged for with recurring fees or with one-time fees. For manufacturers, offering enabling services may become a key differentiator to be able to sell their core product and may provide a sizable and growing portion of their revenues.

  • Services

    Services can include one-time services, such as the installation of a machine, or recurring services, such as a periodic general maintenance.

  • One-time fees or discounts

    These may include activation or cancellation fees or other surcharges or discounts. Fees can be based on a process that occurs (order is created) or an event (service is discontinued).

  • Other product packages

    Packages can, in turn, contain other packages.

Integration

Sales packages can be used in provider orders. A sales package in a provider order generally combines a rate plan product with additional hardware, one-time fees and incentive products for the sales process.

For more information, see Provider Contracts and Provider Orders.

Example

  • All-in-one communication package

    • DSL Internet connection

    • ISDN phone lines

    • Discounted hardware

    • DSL Splitter for free

  • Coffee machine in a company’s lobby

    • Big coffee machine type 425M with several options

    • Starter set of ingredients matching the machine type

    • Free installation and setup service

    • SLA: Reaction within 4 hours 5*12, T&M (19 €/month)