Articles from May 2012



Why Are so Few Blacks in the Sales Professions?

Racial Discrimination

Sales Representative Job Description– Individual needed to convince buyers to do something that they otherwise might not do!

Job Duties – To make this happen, you need to be able to create interest, develop relationships, clarify the product/service and its uses, close the deal, and service the customer.  Not capable of being done by a machine or robot.  Cannot be outsourced!

Why Aren’t There More Blacks in the Sales Profession?

As a Black sales professional, or an aspirant one, you may, or may not, have wondered the answers to this question.  As the question is intriguing, I attempted to research it on the basis of items written and published.  There is not much discussion in print. There is not much out there other than a couple of doctoral works done in the late ‘70s.  As those are somewhat stale I will pose some of my own observations on this issue.

Most professional sales positions interface with the ‘paying public’, also known as customers, in business-to-business (B2B) or business-to-personal (B2P).  Thus the sales profession is where the “rubber meets the road” for most organizations involved in manufacturing and distributing durable and non-durable goods as well as personal and business services.

Simple observance would tell you that Blacks are underrepresented in the nation’s professional force.  Whether it is sales positions in large thriving organizations, or sales positions in small and medium sized firms, there are very few organizations that have “too many” Black sales professionals.

There are several reasons why Blacks never get exposed to professional sales positions:

Many Qualified Blacks Avoid Jobs with an Uncertain Income – Those of you who are in sales know that many of your friends and your relatives marvel at the fact that you can’t tell them how much money you will make next year.  In the Black community jobs involving only commission are intimidating and not highly sought after.  Positions that have compensation schemes that involve salary are much more desirable.  Positions that have variations of the two (salary and commission) such as salary and bonus, or a salary draw plus commission garner suspicion because income at risk is not as desirable as a good salary.

Many organizations don’t seek out Black Sales Professionals – There are organizations that do recognize the benefit of the Black sales professional and actively recruit and hire.  Many large organizations have formal recruitment programs and planned goals as they measure hiring and retention of their minority sales talent.    The converse of this is that mid-sized and smaller businesses do not actively seek entry-level sales recruits with or without college educations.  These organizations lack formal sales training programs and thus expect candidates to come into the job with sales experience, and some indication of success.  This can be limiting for aspirant Black candidates, as they must attempt to garner the experience somewhere before getting the most desirable sales positions.

Mobility within organizations – When Black college seniors are recruited they enter the organization through the sales operation.  That makes sales jobs a gateway position.  Many recruits that enter in this way find mobility within the organization and move to positions, even promotions that are more desired. Using the sales position as a portal to get inside an organization is fair, and a good way to work the system. This means that Black professionals in both simple and complex organizations migrate throughout the organization after finding success in the sales job.  Many new Black college graduates have little desire to be a career sales professional, but are highly desirous of getting on with a quality organization.  Many of those quality organizations that hire and train Black professionals allow them upward and lateral mobility within the organization, as these professionals are a known quantity and stable performing minorities are needed.

Lack of confidence – Based on the fact that most buyers are white, the Black sales professional often has many concerns regarding acceptance, preference, and possibility of success.  Depending on the firm that is in question, this might be only a perception, but it can be a serious and a limiting problem.  How many times have students or aspiring professionals indicated to me that they don’t think they could do the sales job?  More than I could ever count.  In reality many of them could do it, but they are intimidated by the nature of the job…. they lack confidence. Although mentoring, training, and general support can help a professional gain confidence, success is the best catalyst to creating that aura of confidence.

‘Bad’ assignments – Often when a Black sales professional is hired, they are more likely to get a difficult assignment.  Sometimes that assignment is related to an area or territory which has languished, or a company trying to reach Black businesses.   Have no doubt -Black sales professionals should be very clear about the territory that they are entering and should have agreement on what is expected upon hire and deployment. Hiring a Black sales professional in hopes that individual is going to handle Black businesses is unfair and limiting.  If you agree to it, that is ok (even though it is limiting).  I consider it a form of discrimination.  Your universe of prospects should be the similar in composition to all of the other sales professionals if your territory is similar to other sales representatives.  This scenario happens too often and can result in failure on the job.

Lack of mentoring - It is well known that we need more mentors to help Black sales professionals learn to navigate the sales environment.  As you will see later in this book, that need for mentors spans both an understanding of the intricacies of the organization as well as the sales environment.  Consequently, the sales professional may need more than one mentor.  Mentoring will help professionals who need to know more about the sales profession, the market, and the organization.  We need to increase this activity to fill the void, as it is obvious that there are deficiencies in this regard.  Organizations need to provide more mentoring, yet mentoring from outside the organization can be effective as well. Mentoring, when done right, represents a way to give experience, expertise, advice, and support.

Lack of training and support – Organizations who hire should attempt to provide the proper training and support. As they have made the first move, now they need to give the Black sales professional the opportunity to succeed. The Black Sales professional should request details about training, and ongoing support prior to accepting a position.

Retention of Black sales professionals is difficult – Much of this is based on what is above.  A solid Black sales professional has many talents, and if thwarted by the points shown above, they will move to other sales positions, and possibly to other occupations.  Having them move out of sales positions keeps the numbers anemic, but also makes managers wary in the hiring process.  This is not favorable for other Black sales professionals.

Why is it Important? – The Professional Sales Outlook 2012 – 2018

The importance of this issue is based on the fact that as many occupations languish, professional sales is projected to grow through 2018. Let’s quickly look at the number of sales positions available.   The source of this information is the United States Department of Labor.  This report projects through 2018. A quick look at the sales profession in this jobs report will show the following information:

Sales Representatives, Wholesale and Mfg. 1,973,000

Sales Whsl. and Mfg. (Excl Tech and Sci)      1,540,000

Sales Whsl. and Mfg. (Tech and Sci)               433,000

The jobs pay well in the overall also:

  • Wage estimates ex tech/scientific– Median $51,920, with the 75th percentile showing $74,310 in the overall.  This is wage, and does not include commissions or bonuses.
  • Wage estimates tech/scientific – Median $71,300 with the 75th percentile showing $100,910 overall.  This is wage, and does not include commissions or bonuses.

Total sales employment for 2018 is projected to rise to 2,116,400 by 2018 for a 7% projected increase. All of the numbers shown are from the May 2009 DOL Report. Almost all sales positions have some arrangement regarding bonus or commission, although some sales positions are commission only.

In a country that has a reduced focus on manufacturing products, the occupation of sales has increased in importance.  This importance comes from selling US manufactured goods as well as goods manufactured outside the US to businesses in our country.  This is basically the essence of distribution. In professional sales, you cannot successfully outsource distribution.   It will be domestic, and almost all of it will be face-to-face.

Your comments are appreciated.

Get Fired Over a Cheeseburger? Know Your Company’s Expense Policies!

Expense Log

When I discussed this over a year ago, I wanted to stress the importance with knowing your company’s expense policies and to stress avoiding even the most correctable errors.   Proper personal expenses management is that part of your sales activities that merely helps you maintain your credibility and gives managers confidence that you will do the right thing when no one is looking.

Following the program correctly won’t necessarily get you a lot of additional points, but it will secure you in the mind as someone who can be trusted. Be smart and in control of the process.  Knowledge counts here.  Read this and remember, ignorance of the policy is no excuse.  Read on…

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Business entertainment, especially customer dining, is an event that we may take for granted.  It is important for most businesses but always suspect as an expense that can be smartly trimmed in terms of cost, and even frequency.

Business entertainment is a tool that when used wisely can aid in relationship building.  When done correctly, this can result in far greater returns than the business meal or entertainment actually amounts to.

If you desire to claim a business lunch, dinner, or other entertainment, these expenses should be directly related to the business purpose.  The meal or refreshments should be related to the legitimate image business activity, and should be able to stand the test of proof.  Technically, only then would you and your employer be allowed to treat these expenditures as expenses, and not as income when the burden of proof comes along.

Getting Technical

The IRS sets some basic rules that individuals and business follow.  A quick review of the rules that the IRS as set forth will show a couple of rather simple tests:

Directly Related Test

To qualify for reimbursement under the directly-related test for entertainment, including meals, you must be able to prove the following:

  • The main purpose of the combined business and entertainment was the active conduct of business.
  • You did engage in business with the individual during the entertainment period
  • You had more than a general expectation of getting income of some other business benefit at some future time

The Associated Test

If the expenses meet the directly-related test, they may qualify under the associated test.

This test states that entertainment is:

  • Associated with the active conduct of your trade or business and,
  • Directly before or after a substantial business discussion.

This test includes the Substantial Business Discussion rule that is a requirement of deductibility for your employer.

According to Publication 463 – Travel, Entertainment, Gift, and Car Expenses for 2010 from the Internal Revenue Service, “A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific benefit.”

Keeping Credibility

Accuracy and truthfulness are at the heart of professional credibility for the Black sales professional.  Even greater is the fact that only one instance of inaccuracy or untruth can do away with years of work establishing the credibility.  There is more on credibility in the last Black Sales Journal 3/31, Credibility – A Goal of the Black Sales Professional.

I am going to cite some basics, and these are truly basics for expense report integrity.  Here are some suggestions for keeping your standing and credibility intact regarding expenses:

  • Be timely - Submit your expenses no later than 1 week after they are due.
  • Be organized - Keep information in a system that allows you to produce your receipts and expense forms as is necessary.
  • Insure accuracy - If you do your expenses regularly, you will be under no time pressure.  The accuracy in your reports builds confidence.
  • Be honest - Above all, there is truly nothing worthwhile to gain by having your employer pay for a lunch for you and your friend.  It is frankly not worth it!  Only claim what you can prove using receipts.
  • Be Knowledgeable – Know intimately your organization’s expense policy.

Some Business Entertainment Specifics

We all have a particular responsibility when it comes to business entertainment, and especially meals.  We should make sure that the meal or event matches the business purpose.  There should be no instance where entertaining at the most expensive restaurant in town happens for a casual business discussion.  Remember, being modest and practical is prudent and a sign of good judgment.

Here are some basics entertainment do’s and don’ts that you may benefit from:

  • Take Ownership – Forget the roulette that takes place where you the participants of a meal wait for the bill to come, then “wait” each other out to see who will pick up the check.  Unless the customer has advised that they are picking up the meal, they are probably not going to do it.  “Own” the event and then the rest of these strategies will be possible.
  • Wine – If you are the host, only you should order the wine.  You may not realize why if you have never been burned, but the ordering of wine is an extremely high expense at an upscale meal.  If you are unsure you can accept someone’s counsel, yet your job is to order, and replenish the wine.  Feel comfortable stating to the server, or wine steward that you are responsible for the meal, and you will be responsible for the wine.
  • Cordials and Liqueurs – If you open up to your guest having these, you could be in for a surprise.  Once you open that gate, you are hard pressed to control the cost of any one of them.  An aged port could definitely be in range, yet some of these items could be the price of a small pony.
  • Order First – It may seem like bad manners, yet the host ordering first begins to set the tone.  When you order a fairly simple strip or filet, you are sending a message that the ‘market-priced’ lobster, which then attaches itself to a filet to make surf and turf, is probably above the price point.  Now, they may still do it, but the majority of people get the hint.
  • Know When to ‘Cut it Off’ – This is always uncomfortable, yet practical.  After the meal, when the laughter and libation goes on, know when to say to the server that you need the check.  That does cut it off…at least for you.  If someone else wants to pick up the tab, it can start there.  This is responsible, and practical.  If it seems like it is wrong, think about the bill you are going to submit, and how management is going to react to it.
  • Tip Correctly – If you tip correctly you will always find those who serve you eager to have your table.  Great service deserves 20% or more.  Good service deserves 15-20%.  I have had some mediocre service at times, yet did believe that 15% was warranted, because of the size of our group.  I cannot ever believe that a tip should be stiffed unless the server was rude, insensitive, and downright awful.  If that were the case, I would be having a conversation with the manager as well.  If you are unwilling to talk to a manager, then stiffing a tip is more retribution than anything else.
  • Treat Wait Staff Properly – When you are entertaining, much can be ascertained about your view on your staff and others by the way you treat the wait staff.  They are not perfect, and you are not either.  I have seen customers make a decision to avoid a formal business relationship with a vendor when that vendor launches aggressively into a server for forgetting something small.  That is about rudeness, and even sometimes about power.

Use Good Sense

It is all about using good sense.  When you do it, the most common mistakes are avoided.  Don’t feel peer pressure, or the pressure that makes people do those things that are regrettable.

Build a relationship with your customers, not a game of one-up.  Be modest when they treat as well.  You will build a relationship with your consistency.

Your comments are welcome.