The ₹58,000 Laptop Bundle
At a consumer electronics showroom, a customer wants a laptop for his daughter's college course. The model is priced at ₹57,490 in the store; a marketplace listing shows ₹54,990 for what looks like the same model. The customer says he will buy immediately if the store matches the online price, otherwise he will leave. The salesperson earns incentive on accessories and extended warranty, not on laptops. Store policy allows a price match only for an identical model with an authorised India warranty, verified by the manager, and a maximum reduction of 3%. Laptop margin is 7%, accessory margin about 35%, and the two-year extended warranty margin about 50% on a ₹3,999 price. The salesperson has already spent 25 minutes with the customer and has a monthly target of ₹40,000 in accessory sales. The showroom has a service centre tie-up and offers free setup.
1. How should the salesperson handle the price objection? State what must be verified before any price discussion and calculate the policy floor.
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Verify first, do not argue. Check the marketplace listing's model number, processor, RAM, storage, seller, warranty and GST invoice, and whether stock is actually available. Many cheaper listings are imported, refurbished, a different configuration, or sold without India warranty.
If the listing is genuinely identical, the policy ceiling is 3% of ₹57,490 = ₹1,724.70, so the floor is ₹57,490 − ₹1,724.70 = ₹55,765.30. That is still ₹775.30 above ₹54,990, so the store cannot match without breaking policy.
The response should acknowledge the gap, explain what the extra covers - authorised warranty, service-centre support, free setup, immediate replacement - and ask about the daughter's course software, battery life and portability needs. Then offer a bundle, not a naked discount. If the customer still leaves, record the lost sale and the reason so the pricing team can see the pattern.
2. Build a bundle and calculate its economics. What attachment is needed to protect the rupee margin lost if the 3% discount is given?
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Full-price laptop margin = 7% × ₹57,490 = ₹4,024.30.
A 3% discount costs ₹1,724.70, leaving ₹2,299.60. To restore the original margin, the bundle must add ₹1,724.70 of margin.
- Extended warranty: 50% × ₹3,999 = ₹1,999.50. This alone more than covers the discount.
- Accessories: at 35% margin, you would need ₹1,724.70 ÷ 0.35 = ₹4,927.71 of accessory sales, which is unrealistic for most laptop buyers.
A practical bundle: laptop + warranty + a ₹1,500 accessory (mouse/headset) gives ₹2,299.60 + ₹1,999.50 + ₹525 = ₹4,824.10, above the original ₹4,024.30. Present it as one total price, disclose that the warranty is optional, and do not use the discount to hide an overpriced accessory.
3. The incentive design rewards attachment. What behaviour risk does this create, and how should the store monitor it?
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The incentive can push staff to sell warranties and accessories the customer does not need, or to discount the laptop to make the bundle look attractive. It can also encourage mis-selling - for example, implying the warranty is compulsory or that the laptop will not be serviced without it.
Monitor attachment rate alongside warranty cancellation rate, accessory return rate, customer complaint rate and bundle gross margin per sale. Review transactions where a discount and an attachment occur together, and use mystery shopping. If attachment rises but cancellations and returns also rise, the incentive is buying sales rather than building them. Move part of the incentive to bundle margin rather than accessory revenue alone.