Black Sales Journal

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 recognize that you know how to dress professionally.  I also recognize that there is often temptation to ‘relax’ your routine  in the face  of our changing times.  I want to go ‘on record’ against becoming a ‘pedestrian’ in the fast moving world of business.  Your image is at stake!

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The title of this would make you think I am going to write on what you should wear, but that is not the case, on second thought, maybe we will cover it in a future post.

I will, however, cover two points that many of you are already aware of.   I want to share a view that can help you increase your effectiveness.

As a Black sales professional, your image and the persona that you are working to build are very much subject to your last encounter with your client, especially a new one.  With that in mind, always look your best.

To Be or Not To Be … Casual?

As a sales professional, when the rest of the world dresses down for casual day, you have your opportunity to stand out as a sales professional.

Whether it is casual Fridays, or “casual dress” office environments, many operations began doing it In the 90s and it is widespread now.

As comfortable as it is, I would like to convince Black sales professionals not to do it.  Here is my reasoning:

• As a sales professional, when the rest of the world dresses down for casual day, you set yourself apart as a sales professional. Sales professionals look the part.
• In the eyes of your clients you want to stand out as an individual who treasures their business relationship and has something to special to deliver.  Dressing down indicates that you need comfort more than you need to display professionalism.  Don’t be suckered into it, be the consummate professional.
• When you are in casual mode on casual Friday, or in an office casual setting, it makes the rest of your day automatically casual. Meeting with a client to solve an unforeseen problem, or responding to that potential “call-in” is not possible, unless you plan to take “casual” with you everywhere.
• To your clients, if you are casual, what makes you different from the next sales professional? This is when you show your best.  Strengthen your persona!

Be the best-looking sales professional out there.  Whether male or female if your business garb is your “uniform”, then do it in the way that makes you stand out.   This is especially the case when your own office is casual.  Don’t let yourself fall into that mode.  Everyone in your office is not in the same position as you, so they will dress position appropriate for their job, and you need to dress for customer contact.

I believe that any sales professional, who is responsible for being on client visits or potentially greeting clients when they come to your company’s, office should be dressed in attractive business clothing. For the type of work you do, you want the customer to recognize you as a professional who represents yourself and your company as a professions well emblazoned intheir mind.

Always Look Your Best

During my tenure as a regional sales manager many years ago I was interviewing a sales candidate that was being considered for employment by one of my field sales managers.   The objective of having the Regional Sales Manager interview the Field Sales Manager’s prospective hires was to put another set of eyes and ears to it.  On this morning I met a candidate who had received high marks from the interviewing manager.

When I walked in the interview room, I met a candidate who we would pay a salary and bonus as well as a possibility of inheriting some significant customers.  Immediately upon introduction I noticed obvious grease stains on the candidates pants as well as frayed collar on his shirt.  It frankly looked bad.

The interview was better than average, and there were many solid points that the prospective sales representative offered up that made me think that I might be able to endorse the sales manager’s selection.  That is, if issues regarding appearance were not so lightly regarded by this candidate.

If the candidate was that neglectful when putting his best foot forward in an effort to get the job, how was he going to look when visiting one of our customers?  Although I probably don’t need to say it, he did not get the job.

Think About It

A testament to this will be when you exit an important customer’s office into the waiting room to say your farewells and see your competitors in some bad “Christmas” sweaters and deck shoes waiting to see your customer.  Even the janitor will be able to tell you who looks more professional.

Always look your best!  Be impeccable, it’s your image.

We would love your comments.