Kitting

Kitting is selling several separate items together as one product with one price, such as a gift box or a starter kit for a new barber.

Also known as product bundling bundle selling kit assembly

Definition

Kitting is selling several separate items together as one thing with one price, such as a gift box holding a candle, a mug and a card. A starter kit for a new barber works the same way, with clippers, oil and a cape inside it. The customer buys one item, but the stockroom gives up three.

That gap is the whole difficulty, because the kit exists on the shelf and in the accounts but not in the stockroom, where only its parts exist. So when a kit sells, the system has to reach in and take one candle, one mug and one card out of stock, each from its own count. If it records only one gift box sold, the three real counts stay too high, and within a month nobody trusts the stock figures at all.

Get it right and the same three items can still be sold on their own, because the candle sits on the shelf at its own price and also inside the box. Both routes pull from the same candle count, and that is the test to put to any supplier before you sign. Ask them to sell you a kit, then check whether the parts went down. Many systems fail that quietly, which is why Linkysoft has replaced a few of them.

Storek writes the recipe of a kit once, so every sale takes the parts out at that moment, in the shop and on the website alike. It also stops the kit being sold when one part has run out, which is the second thing people forget. A gift box with no card in it is a complaint rather than a sale.

Price is where owners lose money without noticing, because a kit is usually cheaper than the parts bought separately and that discount has to come off somewhere. Decide whether it comes off each part or off the kit as a whole. That one choice changes what your profit report says for the rest of the year. Linkysoft asks this at the start of every shop project, and it is why a kitting rule often ends up in a custom web application rather than a spreadsheet. Returns are the same problem backwards, because when a customer brings a kit back the three parts have to go back on the shelf. Only a system that knew the recipe can put them there.

Questions about Kitting

What is the difference between kitting and a bundle?
In everyday use they mean the same thing. Several items sold as one, and the part that matters is that the system still counts every item separately in the stockroom.
What happens if one item in the kit runs out?
The kit should stop being available straight away. A system that keeps selling it will send an incomplete box, and the customer will notice before you do.
Can I sell the same item on its own and inside a kit?
Yes, and that is the normal way to do it. Both the single sale and the kit sale should take from the same count, so the number on the shelf and the number on screen agree.
How should a kit be priced?
Usually a little under the total of its parts, so the buyer sees a reason to take the whole thing. Decide before you launch whether the discount is recorded against each part or against the kit, because your profit reports depend on it.
What happens when a customer returns a kit?
Every part goes back into its own count, not into the kit. If the system does not know what was inside, somebody has to correct three numbers by hand, and that is where the errors start.

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