Bundling Across Product Generations
Every company can bundle, even those with only one product and one site. How is that possible? By bundling across product generations. This approach has practical applications above all in the project business. By definition, a project is an undertaking with a clear goal and an end. To avoid treating each project as an isolated, one-time affair, and to succeed in bundling across generations, an appeal needs to be made to the entrepreneurial imagination of suppliers.
Even though only minimum negotiating strength may be associated with a current project, it is possible to gain substantial concessions from a supplier through the prospect of inclusion in actual or possible future projects. If the supplier can supply the same products for future projects, it may even be possible for tooling and development costs to be amortized over several projects.