Customer preference in any forum is powerful.  Preference in sales is powerful, and manifests itself by creating unfair advantages for one option or another.  Racial preference in sales is powerful, and can even be damning against the sales professional that never gets an opportunity because they are the wrong color (regardless of what color they are).

You will remember reading about racial preference in sales and its effects in Black Journal before.  This depiction of racial preference in the buying process makes more clear the effect that race has on the decision of who a buyer will potentially work with.

I will define Racial Preference in sales as simple definition that I will give as follows:

The customer choosing to work with a sales professional who is of a particular race or skin color.

That’s it.  Simple preference to work with someone on the basis of his or her color or race.  It happens every day in one way or another.  This is not the most insidious type of discrimination, just the most pervasive.  It is also more ‘natural’, and does not seem wrong to many who do it.

There are also opportunities for preference to have minor versus major effects so this one is on the basis of degrees.

We will use an example of “true” racial preference, meaning control of all other externalities.  This study was done by Stanford University News, July 19th, 2010 (see the whole article).  This story was well done by Louis Bergeron and is essentially a clinical example of what happens when race gets in the way.

A Strong Example of Racial Preference

This example is as clinical as it can be, done by researchers at Stanford.  I will use some clips of the dialog, and you will understand the design and results of their tests.

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Online shoppers more likely to buy from white sellers than black, Stanford researchers say

When a seller’s race is evident in an online classified ad for an iPod nano, black sellers receive fewer offers and less money than white sellers, says a new Stanford study.

Online shoppers are more likely to buy from a white seller than a black one, according to a study by two Stanford researchers who posted ads on local classified advertising websites across the United States.

Courtesy of Jennifer Doleac and Luke Stein

Classified ads featuring a black person’s hand holding an iPod being advertised for sale received 13 percent fewer responses and 17 percent fewer offers than ads showing the iPod held by a white hand.

The ads offered the latest version of the iPod nano for sale, with each ad containing a photo of either a dark- or light-skinned hand holding the popular digital music player. The ads with a black hand received 13 percent fewer responses and 17 percent fewer offers than ads showing a white hand. Black sellers were also offered less money for the iPods than white sellers.

“We were really struck to find as much racial discrimination as we did,” said Jennifer Doleac, one of the researchers and a doctoral candidate in economics. “On average it’s a younger, more educated group of people shopping online and if anything they probably discriminate less than the population as a whole.”

“We suspect that the negative effect of race would be even larger in the general population,” she said.

Doleac and fellow researcher Luke Stein, also a doctoral candidate in economics, ran ads in more than 300 locales, ranging from small towns to major cities, during the course of a year.

The study showed that black sellers were at the greatest disadvantage in the Northeast, where they received 32 percent fewer offers than whites. In the Midwest, black sellers got 23 percent fewer offers, and they got 15 percent fewer in the South. The West was the only region where the difference in the number of offers received by black and white sellers was not statistically significant.

The amount of money offered black sellers was between 2 percent and 4 percent less than the offers white sellers received. The disparity was most pronounced when the ads were posted in locales with high crime rates or where blacks and whites were geographically isolated from each other.

Buyers responding to classified ads of an iPod for sale made offers 2 percent to 4 percent lower when the iPod was shown being held by a black hand instead of a white hand.

In general, black sellers were at much less of a disadvantage when the ads were posted in more competitive markets, where larger numbers of iPods were for sale, Doleac said.

The iPod listed in the ads was always a silver, 8-gigabyte version of the most recent edition of the nano, which also plays videos. Each ad stated that the box had never been opened and the iPod was for sale because the seller did not need it.

Doleac and Stein never met with the buyers in person. Instead, when it came time to set up a meeting, the researchers said they were out of town and offered to ship the iPod to a buyer’s home, which produced another striking disparity.

Potential buyers corresponding with black sellers were 44 percent less likely to agree to have the iPod shipped to them and were 56 percent more likely to express concern about sending payment to the seller by PayPal.

Doleac and Stein interpreted the buyers’ reluctance as indicating a lack of trust in the sellers. The would-be buyers were also 17 percent less likely to include their name in emails when they responded to ads placed by black sellers.

“The results were obviously disappointing in terms of what they said about the state of society,” Stein said.

Because they never met with any of the buyers, Doleac and Stein have no information on the race of the respondents.

Stanford University News, July 19th, 2010
Study Conducted by Jennifer Doleac and Luke Stein
Article By Louis Bergeron

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Why This Example? Draw the Parallel!

I chose this as an example because of the simplicity of this display of preference.  The difference in the offers on the iPods was simply the color of the hand.   There are those who suggest that my characterization of preference might be flawed.  I would suggest that there is no clearer and simpler example of racial preference that can be

You need to draw the parallel from this P2P (Personal to Personal) activity to the B2B (Business to Business) and B2P (Business to Personal) sales that most of you undertake every day.  The bridge on all of these is simple:  In B2B and B2P sales, you always are selling to a person.  There is no doubt about that…you are selling to a person and not a company.

Practical Applications

Job Hunt and Resume – The practical aspect of this is that unless you are aware that an organization you are applying to be looking for a minority candidate, you should ‘scrub’ your resume of racial indicators.  I discussed this in depth in Black Sales Journal 11/21, Is Your Resume Race Neutral?

Business Cards – Another practical application is that I feel it is important to keep your picture off of your business card.  The business card is not an ID, it is your business information in a quick and familiar format.  Keep the picture off unless you want it well known as might be the case in some real estate and B2P positions.  This was specifically mentioned in Black Sales Journal 2/10/2010 9 Prospecting Tips for the Black Sales Professional.

You want to show that you are the professional looking for the opportunity to solve a customer’s problems.  Once you crest the hill we call preference, you can begin to show your true talents.

Always be the best.

Your comments are welcome.

It is well known that your ability to communicate will help to give you a solid base to be an exceptional sales professional.  It won’t make you the consummate professional, but it will enhance your ability to perform.  I feel that the professional, in sales or otherwise, who communicates well and also has a “fire in the belly”, has the potential to outperform other professionals.

We will spend a couple of posts over the next few weeks talking about communication.  It is an art that will never abandon you as you go forward, and it will also transform your confidence levels. In this post, we are going to make a suggestion that you find comfort in your ability to “stand and deliver” by rehearsing and practicing frequently.  Know well your strengths and weaknesses and improve to a level that puts you on another level.

Practice, Practice, Practice

I bet that you feel the most boring activity that you feel that you can do is to repeatedly practice your verbal delivery, but I am compelled to advise you to do it.  What I am saying is that you cannot perfect something without the requisite practice.  As a sales professional, everything from your introduction, through your ‘elevator pitch’ (Black Sales Journal 8/11/2011, Know Your Elevator Pitch), to your proposal and your close should be smooth.  There should be no fillers and little chop to your delivery.

So what am I saying?  Do everything necessary to improve your delivery.   Videotape yourself using digital cameras, web cams or otherwise giving speeches and presentations until you have solved you’re your need for ‘fillers’ and until you have reduced any ‘choppiness’.  We have all heard the suggestion that we should be able to sell any object using feature-benefit selling, now is your chance to practice.  Not knowing your material lends to more pauses and fragmentation.  Here is your chance to, while in private, present and evaluate your delivery, and improve.

You can bet that if you videotape, you will find things that you will want to change.

These may include:

• Frequent use of  “Umm” as well as “and uh”
• The annoying use of the phrase “You Know”
• Frequent starting of sentences with “Well…”
• Improper usage of the word “like”
• Talking at “break speed”
• Exhibiting an “I” problem (talking about yourself too much)
• Inclusion of slang and even obscene language

In a very short time I have seen professionals remove “you know” from their delivery even without the videotape.  Consciousness is important, and you will become even more aware if you use your phone, your computer webcam, or a video camera as your observation tool.

With the help of your recording session, you will become quite conscious and truly internalize it, reducing annoying habits, and improving delivery.  It is worth the experiment.

Who Do You Like to Hear?

There are many great speakers out there, and you may find one that you want to model after.  If you are just the best YOU that you can be, that should work for you.

The basic objective of this exercise is to improve your delivery during the sales process, and you will find that it will carry over into your personal conversations as well.

It is sound to model after someone, but you must be realistic.  Almost all great speakers have some weakness or flaw, no matter how accomplished they are.  You are looking to improve the quality of your delivery.  You don’t want to preach, but you need to be able to deliver the ‘word’.  You don’t want to sound like a professor, but you want to sound intelligent.  Lastly, you don’t want to sound like a funeral director, so you must use some personality, humor, and personality.

Almost as good as the videotape for the sake of monitoring is a “partner” or even a listening coach could do the trick if the right person is available.

The Result

I had a professional who worked with me several years ago.  He had a nervous, high-pitched laugh that became pronounced when he got …nervous.  He could not hide it, or at least it appeared that he had no chance of controlling it.  We had a call together, and as the account was a big one, and he felt pressed.  I can remember the call as if it were yesterday, the laugh echoing in my ears.  I was only hoping that the buyer was not as negatively affected by it as I was.

When it was over I though about it over and over, and decided that I needed to talk to the individual as we, undoubtedly would be on a call together at some point in the future.  He did know that it was happening, and did not know how often he was doing it.  I could not put into words for him how much it was happening.  There were few video cameras, and cell phones did not possess the abilities that they do now.  I limited the calls with my clients when possible for this individual, as there were no remedies out there.  This laugh was not going to stop.  Yes…I am saying that some things are deeper than just an ‘I know’, but most can be remedied.

If you do the videotaping or the partnering, you will have an avenue to begin working on the necessary improvements.  Nothing is like continuous improvement.  Try it, and you will see what I mean.

Your comments are welcome.