Racial Preference is an amazing natural phenomenon.  It can also be a difficult force to overcome.  The most important thing is to understand racial preference, because if you understand it, you can strategize how to work around it.  It may seem natural and you may possess some racially preferential attitudes as well, but it is vexing for a sales professional. Think about it!

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Customer preference in any forum is powerful! Preference of any type 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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Courtesy of Jennifer Doleac and Luke Stein

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.

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?  This is not always possible, but your objective is to get in front of the buyer so they can ‘witness’ your attributes.  If you can do it, then consider it.

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.

I think you deserve to get paid!  Read this post, as well as the post at the bottom of the page to find out how.  Don’t get a new job and be regretful about the major reason that you are there….your money!

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On the 6/12 edition of Black Sales Journal we discussed “knowing the landscape” as you prepare to negotiate your salary for a new job (that post is at the bottom of this page).  The objective was to have all of the homework done so that a target can be achieved, and there is likelihood of success.

In this edition of Black Sales Journal, we will spend a little time dealing with the actual negotiations themselves.  This includes receiving and responding to an offer(s).  This is far from a science, and is probably best classified as an art.  The art of how to get what you need in a dignified manner, while maintaining the deportment necessary to keep respect.

Remember, if you are sales professional, it is not unlikely that your prospective employer expects you to do some negotiation.  They won’t be offended by it, yet it should be done correctly.

The Golden Rule – The One With the Most Options has the Most Power!

Power is important in negotiations.  It does not need to be displayed; yet it defines the activities that either side employs.  Knowledge is important as well.  That is why we spent time last week on being firmly aware of “the landscape”.  You would feel totally different about your current or past salary numbers if you knew what all of your colleagues were being paid.  You might be satisfied, happy, or dismayed, but probably would feel totally different.

Options are important.  When I mention options, I speak of viable alternatives to an action.  If you have five job offers, and all are in the field you want and have robust salary offers, you have an amazing number of options. No matter what you ask for from any one of these potential employers, you can be steadfast in getting a good deal.  You have five viable options, and you have “the juice” (power).

However, if your prospective employer has 5 candidates, and although they are not identical (of course they could not be), they each are strong and would make solid sales professionals.  The prospective employer, in this case, has the power.  They have options and will use their “superior” position to their advantage.

There is nothing nefarious about any of this; it is the use of options resulting in the position of power in a negotiating relationship.

Power for the Black Sales Professional

This is a sensitive subject, yet relevant.  As a Black sales professional can you transform what has historically been to a disadvantage to an advantage?  Can you take advantage of the relatively low number of proven Black sales professionals in your quest for this next job?  The answer is solid “maybe.”

Most larger operations are looking for accomplished Black sales professionals.  The numbers are just not that large, and accomplished Black Sales professionals are still a small subset of all accomplished sales professionals.  You won’t know enough about the organization, or the candidates you compete against to be able to use any gambits to enhance your positioning.  I suggest that if you are the best candidate in the competition, and negotiate well, then you have done all you can do to get the job.

Remember, as I have mentioned in Black Sales Journal on several instances, you are being made an offer by an individual, not a corporation.  Realize the importance of that statement.  Someone (the hiring manager) will make the decision, with the guidance of Human Resources and company guidelines as to what the range is.  You are trying to get the most out of that salary range from the negotiating manager.

Some Useful Techniques

These are simple, and can be remembered.  Always try to negotiate salary by itself, apart from all other work benefits.  It may not be possible, yet it is advisable.   The natural progression of the process is as follows:

Step 1. Evaluate the offer

Step 2. Give a suitable response (note below)

Step 3. Deliver a counter offer or receive a counter offer

Step 4. Make a decision

Here are some things that remember.

• Always remember what you stated as your salary expectation in your application process.  It can come back to haunt you.
• Know the landscape before the application process.  Use the tools and your intuition before giving a salary expectation.
• Give your salary expectation, as well as your discussions in the form of a range and use the term “…depending on the accompanying conditions and benefits.”  This allows you some flexibility.  Example: “I would expect between $60,000 and $75,000 depending on the nature of the bonus plan.”  The bonus plan represents a variable, and you don’t know enough about it, for the most part to be concrete.  This gives you the flexibility.
• Know the number you want!  Use your tools and experience to have that number.  Have a solid idea, but stay flexible.
• When the offer is made, always advise you will get back to them and mull it over.  This is an important decision.

As you evaluate the offer, and it comes up well short of your number, your response should be respectfully done.  I suggest: “I was hoping for a stronger salary number.”  Or you could say, “This is a wonderful opportunity, yet the salary number is disappointing.”  Now, here is where having options is important.  But, if you have no options, you should still say it.  If they don’t give up any of their negotiating room, you can still say, “I will take the job!”  Their answer would likely be either:

• We will take a look at it.
• This is the best we can do!
• What are you thinking about? Be realistic in your expectation.

One way or another, their objective will be to keep salary parity with other sales professionals.  If they started low, estimating that you will “come back”, you will get their final offer.  If they won’t negotiate, and it is a good offer, then you should accept.

Negotiating the “Other” Things

These items are easier, and more palpable.  Know what you want and ask early.  Get them to thinking about your needs.  If you will lose a car from you other job, they should know coming in that you are expecting a company vehicle, or an allowance.  Human Resources can help you with some of these items early on.  Ask them about the transportation and the benefit issues, and ask the hiring manager about other important work issues.

Remember, if you don’t have agreement before you say “yes”, you will have little chance of getting it in the end.

Also remember, your salary is not as important as your total compensation package.  Believe in yourself!

We welcome your comments.