Have you ever wondered what is appropriate when it comes to the proper holiday give when it comes to your valued customer.  It is that time again.  Read this one now, and master your entertainment and gift giving etiquette. Think ahead and do it right this time!

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The holidays are upon us, and it would  be wise for us to review entertainment and gift giving issues as all sales professionals know, or need to know these points.  Proper etiquette in the matters shown below are important.  As a matter of fact, you can display proper sales manners and move to the top of the list as many sales professionals do not employ them consistently.  Whether in business-to-business (B2B) or business-to-personal (B2P), the number of sales professionals that display proper sales etiquette is not where it should be.

Proper sales etiquette comes in many important theaters:

• Business entertainment and business gifts
• Prospecting
• Sales presentations
• Telephone solicitation and use
• Other

This post of Black Sales Journal will cover proper sales etiquette in business entertainment and gift giving. We will cover the other sales etiquette categories in the next month or so.

Entertainment Should be Entertaining!

Business entertainment should have a purpose and be enjoyable, even when the meeting objective is not the most exciting.  Obviously, it gives you time and a way to build relationships, and in sales, relationships are everything.  This area is important as it is ‘your’ moment in the spotlight and as you spend this time focusing on the customer, the last thing you want to do is to strike the wrong cord and turn him or her off.

You may want to take a look at Black Sales Journal 4/4, Business Entertainment – Some Do’s and Don’ts, for some basics on purpose and cautions.    It would serve as a simple refresher to set up many of the points made in this post.

You can be in two different positions with respects to business entertainment, you can be the host, or you can be the guest.  We will touch on these two different levels of status, as they are different.  Regardless of which position that you are in, you are in control of your own actions.

The Host With the Most

As the host you want to be in control of the financial elements and the operation of the meal.  You have to be prepared to exercise control regarding:

• Selecting the venue to match the occasion
• Assuming control of the event
• Setting the financial tone
• Managing the wine and alcohol
• “Managing” the conversations to include all parties

Match the venue to the importance of the occasion in terms of cost and atmosphere.  Good ‘business’ restaurants with favorable pricing are essential to sales professionals, and are usually a good venue, but the occasion should dictate.  Gentleman’s clubs and topless bars are a strict no-no, even if the client suggests it.  You are in control, and your ethics, appetites, and professionalism are at stake here.

Assume control by giving simple signals to the wait staff that you are hosting and expect the tab.  This gives immediate control.  The knowledgeable wait staff recognizes that when a guest orders something that will impact you, they will look to you for a ‘veto’. Remember to tip correctly as it is evidence that you are the professional.

Set the financial tone for the event.  Order first to set the tone.  If you order a sandwich, they will most likely all order a sandwich, yet if you order lobster, you will have a monster tab if the others in your party follow suit.  This means you may need to order a substantial meal even if you have a limited appetite to make sure that the group feels comfortable eating (if you are not hungry), yet that is the responsibility of the host.  Also, be discreet with the tab.  The guest(s) does not need to know the amount of the tab.

Manage the wine and alcohol by reviewing the wine list, ordering the selection, and inspecting the purchase.  If you do not drink, you need to delegate that but give some clear directives on cost, and you approve additional purchases.  Know when to cut it off.

Manage the conversation to include all parties.  From your vantage point as the host, be inclusive in your conversations, and get to know all of your guests

Are You a Guest?

As a guest, you have some simple rules that you should follow which will help you.  These rules are simple, and show good manners:

• Let the host choose the seating
• Order based on what the host orders
• Let the host ‘manage’ the alcohol, appetizers, and the deserts
• Offer to leave the tip
• Say “thank you” when the host pays the bill

Your objective is to be entertained, and these simple points will get you there without going ‘south’ of what the host is doing.

The Art of Giving

Your company probably has a gift giving policy, and you should refer to it for some basic rules.  While the IRS Publication 463 (2010) covering gifts notes your employer or your company receives a deduction for gifts, the $25 deduction that is afforded simply means you should always be careful and discreet in your gift giving.

What is more important is that the gift should be matched to the importance of the relationship.  The government prefers that gifts be ‘nominal’ in value, yet we do know that some relationships deserve more than others.  When you decide to give, the memorable way is to give a well-composed note with the gift that explains the purpose of the gift.  There is a good possibility that the note will be around for a while.

A gift that is ‘out of proportion’ with the relationship will be recognized for that peculiarity, and may not have the desired effect that may be honorable.  An engraved pen is a fine gift, and signifies a business relationship.  It is a great gift for an important business relationship.  A gift of golf balls is a sound and affordable gift for golf lovers, and does not break any rules.  Giving elaborate gifts can give the appearance that you are manipulating the relationship.  Giving a putter is good, giving a ‘set of clubs’ does not look as innocent.

Many organizations require their employees to sign disclosures of all gifts over nominal value once a year.  The firm that is auditing the customer usually requires this.  Keeping in mind that many of the buyers that are courted are financial professionals and very much careful with this requirement.

Summary

When I was a sales manager I had a a responsibility to determine if gifts were appropriate or inappropriate, as well as question and consider approval of some interesting entertainment.  For a valued customer, returning a gift is an uncomfortable process; you would be wise not to put a customer in that position.   By the same token, finding out that you might be funding some of your business entertainment out of your pocket because you violated expense policy can be quite painful as well.

These areas of etiquette easily learned but also meet the ‘smell’ test.  If it does not feel right, don’t do it.  Knowledge is important, so know your company’s expense policy, and keep it handy.  Expose yourself to your company’s gift giving policies as well, and avoid errors up-front.

Knowledge is everything.

Write me at michael.parker@blacksalesjournal.com.

Sounds like a dumb advertisement doesn’t it?  Anyone who believes that a sales professional should work for free has a touch of a fever, but the actual situation plays out everyday.

Yet in reality, many sales professionals, and especially Black sales professionals find themselves in that situation, unintended of course.

It happens when you invest time and effort in making presentations to buyers who based on reasons beyond your control, take your presentation’s price, and your constructive ideas, and give them to your competition.  When that happens, they are actually saying you should work for free!

How It Happens

This can happen to anyone, any color, and any creed.  It is what happens when someone makes a decision to be courted and accepts the benefits of a relationship, yet not get married.  The problem arises when the fruit of your labor is used to better the position of the customer, even though they had no intention of making the move to you or your organization.

You come in with a ‘killer’ price, and a product offering that is exceptional.  You realize that based on the customer’s needs your organization can use a combination of products that are currently available on the market and couple it with some creative financing to make it palatable.   In the whole, your price and product offering is enhanced by your terms (financing, payment deferral, and other benefits) and you feel success is in the making.

As you know the customer can benefit financially and product-wise from the activities of the sales professional without ever making a real commitment to you, and certainly without putting any food on your table.  You may have felt this ‘sting’ several times before, and you do not have to be a ‘repeat’ victim.

You do all of the work, and the customer gets the benefit and any reward goes to the sales professional who followed your lead.  You have to ‘wait until next time or next year’.  Can’t buy much bacon with that! Objectively, this is part of the sales process, and a part of the process that you cannot avoid; yet you can manage.

Take Smart Precautions

To avoid this being your anthem, you have to develop your principles and rules and stick to them.  You also must work on gaining commitment before showing your complete arsenal of products and services during the process.  That commitment is based on the answers to the questions below.

When presenting, seek to get agreement on what you need to solve, and what level of price and program will “land the business”.  Logic would show that you could still be manipulated; yet this starts to get at some of the problem.  You will want to cover these bases:

Ask the all-important questions before the solicitation process.  These are the requisite questions that will define what it will take to separate them from the incumbent:

• Why are you looking for competitive quotes/bids?
• How will the quote/bid process be conducted?
• What pricing difference must be made? What will it take for you to change?
• How long have you been with the incumbent? Does the incumbent get the last shot?
• Is the playing field level with the others that are quoting (other than the incumbent)?

The purpose of these questions is clarity about the buying process and what definable difference that you must make.  Knowing the answers, if the buyer is honest, allows you to do what is necessary to be successful, whether with this customer, or another one.

An important point is that you cannot be hesitant to ask these questions.  They are part of what a true sales professional asks, and gets clarification of before the sales process.  What you learn about how the process is defined in the eyes of the customer will speak volumes.

I am sure that you sales veterans out there do this already, yet it bears mention for the new sales professionals

Don’t hesitate, ask!  Yes, the customer can still violate his/her own rules, but does so at the peril of alienating you and other sales professionals.

How Does this Affect The Black Sales Professional?

This affects all sales professionals, and it is part of the sales ‘game’.  It is what happens when customers must get competitive quotations of products and services because they want to check how they stand, or to satisfy a procedure that does the same.

Here is where it gets vexing.  Black sales professionals can easily be subject to working ‘without pay’ because of the complexities ofpreference and even prejudice (See Black Sales Journal 5/19 A Deep Dive into Preference, Perceptions, and Prejudice).  If a buyer has no intent on doing business with you as sales professional, or your organization, and is planning on taking your work and giving it to the incumbent, they are wasting your precious time and effort.   Issues regarding preference manifest themselves that way. The buyer strengthens his or her relationship with their current vendor, while at the same time improving their price and terms, thanks to your efforts.  Prolonged activities like this could obviously cost you your job.

In this way, being used is bad for your current employment health.  The above questions, if answered truthfully could save you some time, or at least help tip you off as to who the prospects are and who the ‘suspects’ are.

The Reality

You will always run the possibility of wasting time on good accounts that have no intention of moving their business because of their relationship with the incumbent.  They just want to use you for leverage to make sure they get a good price or program.  You have to make the decision of whether you want to be a willing participant, or should we call it a ‘not-for-profit sales professional’.

You have many choices that include not working with a prospect to contacting every few years to maintain the customer pending a personnel change of buyers.  The most important thing is that to increase your effectiveness, you don’t want to waste your time while you better someone else’s program.

You owe it to yourself, and it will make you more effective.

Always be effective!

Your comments are welcome. You can reach me at michael.parker@blacksalesjournal.com.