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 importane 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

As 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.

Your comments are welcome.

h

Always conduct yourself ethically and conduct yourself as if someone is always watching, because they are!  Always do the right thing!

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A few years ago I received a call from someone selling promotional items.

The call went like this:  “Mr. Parker this is Jim Carr from Midwest Promotional Products (I have changed the name).  When we last spoke, you advised me to call you back this October to discuss our organization providing you with some of your branded items for the upcoming year…”

I will stop here for a moment.  I knew right away that my organization did a great job of providing promotional items, and that was the only source that we used.  The fact is, that the opening line from this sales person was an simple lie.

I responded, “Mr. Carr, I don’t remember having talked to you.  I would not have asked you to call me back as we are not in the market for branded material.  We buy from a central source within our organization.”  He responded with lie number two, “Maybe it was not you but one of your managers that I talked to that referred me to you.  I just wanted to share with you our line of…”

I quickly dispatched of the call for one simple reason…if this sales ‘professional’ was going to start off this conversation with two lies and misrepresentations, when was the third going to happen?

Sales ethics is lacking overall in industry, and you have the ability to make sure that you do your part to make the sale profession ethical and honorable.   If you sell a product or a service, you must recognize the importance of ethics in your ability to not only have longevity in this fine occupation, but also to be successful and prosperous.   In the example above, the rep only needed to say that he wanted to find out my interest in his product.  Sales professionals consistently used that approach with me and got an audience.

The Bright Line of Ethics

Note an important fact: The distinction between ethical and unethical will appear as a ‘bright line’ once you internalize your desire to act ethically in all situations.

This rep did what was akin to attempting to ‘sneak through the back door’.  I would want to start a relationship with someone who would so quickly and comfortably start out with a lie.  This may not seem to be large, but think about it,

Ethics: The principles of conduct governing an individual or group (Merriam-Webster Online Dictionary)

The need for ethics in sales is real, and will set you, as sales professional, apart from those who fail to recognize its importance.  Even more, it will allow you to sleep at night.

You will look to be fair, equitable, and transparent when you work with a customer.   Avoid exaggerations and untruths and communicate well, following up with correspondence.

Once you are there, the ‘smell test’ will become part of your quick review.  Once you internalize ethics, you will become sensitized to how everything affects not just the customer, but also all other parties (your employer included).  At that point you recognize that you work for an organization, but also are an advocate for your customer.  The customer has no other voice.  There is no doubt who pays you, but we need to make sure that your customers are treated ethically. Put yourself in the shoes of the customer, and articulate the situation to your organization.  If you were the customer you would want to be working with professionals who you have credibility, trustworthiness, and a desire to do right even when no one is looking.

Ask yourself these important questions:

• Do you feel lying is acceptable? (BSJ 6/30/11 - Telling the Truth – It works Wonders for a Relationship)
• Do you want credibility? (BSJ 3/31/11 Credibility – The Ultimate Goal of Black Sales Professional)
• Do you want the customer’s trust? (BSJ 5/26/11 – The Black Sales Professional – Closing Two Sales at Once)
• Can you hold yourself to a higher value?

These questions are simple but the impact is huge.

Even When No One is Looking!

I was once riding in a company vehicle with a sales rep and the customer to a business lunch in the Chicago area.  We were coming to a toll both and the rep reached into a bag and grabs a coin, which he deposited in the automatic toll basket and we were allowed to proceed.  At that time the toll was 25 cents.  On the way back from the successful lunch, he did the same.  As he did it, I looked at the bag, which must have had 200 or more coins and inquired as to how he got that many quarters.  He indicated that they were not quarters, but after a recent trip to Mexico he had a bag of centavos that were essentially worthless here.

Remember, this is in front of the customer.  Our customer heard him admit to using worthless foreign coins in the toll basket.  If you were the customer, how would you feel about this reps credibility?  What would you think about the organization that you were doing business with as you witnessed him doing it in front of his manager?

We had to terminate the rep (I refuse to call him a sales professional).  Let’s look at it from an employer’s view.  This unethical individual did the following:

• Sullied his image and the organization’s image in front of the customer creating doubt as to our ethics and credibility
• Engaged in a civil wrong which might have carried criminal penalties as well
• Committed expense fraud as he also received reimbursement for fraudulent expenses

I contacted the customer as I introduced the new sales rep.  I apologized for the fact that our representative did what he did, and explained that I had someone who was solid who would take care of him.  The customer said the following to me, “I really wondered about what organization would allow its employee to cheat like that.  I liked [him] but realized that I did not know him well enough to trust him.”  The customer was watching my response as much as he was watching the actions of the rep.

Black Sales Professional – Rise Above It All!

As a Black sales professional you should demonstrate sound solid ethics, and be the advocate of the customer in making sure that your organization is fair with the customer.  With a sound ethics ‘compass’ you will be able to ‘feel’ whether what you are doing meets the ethics tests.

This stance and advocacy will help create the strongest of relationships.  Don’t miss the chance to do it.  It is a responsibility that may test you, but will also strengthen you and your relationship.

Be consistently ethical and you will be the best.

Your comments are welcome.