Next, let’s look at what would happen if their strategy had been to undercut thecompetition. To do this they might have lowered their prices on each product by $5.Product
would sell for $5/month, product
for $10/month, and product
would sell for$15/month. What sales would they have made with our four customers? The sales resultsare here:Joe would buy
for a total of $15.Mary would buy only
for $10.Al would buy
for $15.Jen would only buy
for $15.By discounting products
, their sales would have only been $55/month.
Bundling and Virtual Partnering with Kachingle
The Kachingle Platform allows subscribers to buy bundled apps and content, and allowsthe vendors to earn revenue every time their apps are used or content is accessed.Kachingle is not an app store – it is a behind-the-scenes player enabling vendors todistribute, bundle in various ways, and off-load billing.A bundle represents a community of vendors. Vendors work together as they would in aco-op. They each bring value to the bundle and they bring in subscribers by offering theircustomers their Kachingle bundle option. Vendors also receive referral fees for everycustomer they bring into Kachingle.Cross-marketing, also referred to as co-marketing,is a powerful tool especially when
coupled with bundling. Vendors can display a bundle’s offerings prominently, often withother vendor’s offerings that are complimentary to their own, show a bundle as a specialoffering, or only offer the bundle as a last resort to sell to a tough customer. If a vendor’sapp is in a bundle with ten other complementary apps, and each vendor is promoting allthe apps in the bundle, then the exposure of each app is over ten times as great. Vendorsget greater exposure and potential users discover apps they may not have been able todo otherwise.The Kachingle Platform can handle all types of bundling:
Co-op Bundles –
where all apps are counted equally and points are awardedfor visits and duration of use
Point Bundles -
where users can turn on and off apps as they need thembased on how many points they buy, or they can upgrade by purchasing more points.
Anchor bundles -
where an anchor vendor gets a fixed amount of money persubscriber, and the ancillary offerings in the bundle get usage based revenue.
White label bundles
– This is
where Kachingle is anonymous for the most part, andwould be applicable to existing app store.