Retail Selling Skills and Sales Promotion
Selling process
The exam tests consultative selling: approach, probe needs, present benefits, handle objections, close and follow up. Convert features into benefits. “This bag has a padded strap” is a feature; “it will be comfortable on a long commute” is a benefit. Upselling offers a higher-value option; cross-selling adds a related item. Objections should be explored, not argued down.
Promotion mechanics
Common tools are price discounts, coupons, bundles, buy-one-get-one (BOGO), loyalty points, sampling and display offers. Evaluate a promotion on incremental sales, gross margin after promotion cost, and effect on future price expectations. Check legal limits on misleading “was/now” pricing and prize schemes.
Worked example
A product sells at ₹100 and costs ₹60. Option A: 20% off, so revenue is ₹80 and margin ₹20. Option B: BOGO, so two units sell for ₹100; cost is ₹120, a loss of ₹20. If cost were ₹40, BOGO gives revenue ₹100 and margin ₹20. The reasoning: a promotion’s profitability depends on unit cost and the number of units given away, not on the headline discount alone.
Traps
Do not calculate discount on margin instead of selling price. Do not ignore the cost of free units, redemption and extra staffing. Do not make false urgency claims. Do not push a high-value item when the customer’s stated need is a low-cost basic; that damages trust and repeat sales.