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. Unfortunately,  it has some natural tendencies and you may posses some racially preferential attitudes as well. Think about it!  You still can win!

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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 are 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 racial preference, you can begin to show your true talents.

Always be the best.

Your comments are welcome.

Courtesy of IBM Archives

As we begin to close out Black History week, I wanted to give you a chance, once again to see what it was like for a true sales pioneer.  His ability to deal with racial preference, racial discrimination, and acts of racial prejudice are legendary.  We cannot avoid giving kudos to Thomas Watson and International Business Machines (IBM) in their effort to provide equality.

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Amazingly enough, it is still not too late to be the first! Being the first is an important role in American society.  It is equally important in business.

I am going to use cite one iconic American company as an example. As a matter of fact, it is more than symbolic, because this organization took a leadership role.  This is a brief study in how an organization handles diversity.

A Leader in More Ways than One

Printed Courtesy of IBM historical archives

In 1946 International Business Machines, also known as IBM, hired its first black sales representative. It was an individual named Tom (T.J.) Laster. This was well before the Civil Rights Act of 1963.  This act was also well before the Jackie Robinson broke the color barrier inprofessional baseball.  This was not a beauty products company, or someone selling durable goods products to the Black community, this was a business products company that was on the technical leading edge, and selling their product to basic ‘white’ America’s businesses.

The audience that Laster was something to was decidedly in the majority. If we think we see racial prejudice and racial preference, we need to recognize that we see nothing like this gentleman was faced with during his tenure as a sales professional.  A couple of years later, Laster joined the 100% Club, an honor for reaching his sales quota.  This was affirmation to many that this individual was a qualified and accomplished sales professional.

The 40s, 50s, and 60s were decidedly difficult time even dream of being “the first” in B2B sales, but someone had to do it.  Soon after Laster, IBM hired their first Black marketing representative (Lionel Fultz) in 1951, their first Black engineer in 1952 (Harry Cochraine), and their first Black engineering manager, (Calvin Waite) in 1956.  Lionel Fultz also was named branch manager in 1964.

This made IBM a leader in both business machines as well as employment diversity.  It also made Tom Laster a pioneer in the sales diversity situation.  He was willing, and obviously began destroying the racial perceptions that Blacks, or Negros as we were referred to in that time, could not handle the technical nature and business relationship issues related to B2B sales to a white business populace.  I would believe that partially as a result, many others Black professionals followed through the doors that were opened.

There was no greater a threshold in business sales as this one!  This was certainly important.  Although you probably won’t read books about it there is no doubt as to the impact.

Following this, IBM, assuming the leadership role again, penned and enacted its Equal Opportunity Policy through the Thomas Watson’s (the president of IBM) letter to his organization termed as Policy Letter # Four.  This September 21, 1953 letter directed his managers to “…hire people regardless of race, color, or creed.”  We wish it was as easy this declaration, but this was a start.

This is Significant, But Why is it Important?

I hope you see the significance in the story of Laster. He is truly a pioneer, and really knows what it feels like to be the first.  What is equally important is that you still can be the first Black sales professional in many organizations.

By the same token, you still can be that individual the changes everyone’s ideas about the abilities and work ethic of black professionals.  It would be nice not to worry about that, but it is significant.

. I was not the first Black sale professional in the organization that I came up in. I was actually the third. I was the first Black sales manager, and the first Black vice president, senior vice president, and executive vice president.  I had some interesting experiences, which I try to share in this ‘journal’, but I am certain that many of these assertions would have paled in comparison to the stories that Laster could tell.

Be the Best

There are many small and medium sized organizations that have avoided, for whatever reason, employment diversity.  They could have avoided it because of their small size, or because they purposely have not hired Black sales professionals.  They may have other Blacks and minorities working for the company.  It does not matter what the reason might be, embrace that opportunity to work for and to change those organizations.  Show your stuff!

Your only requirement is to do be best that you can be at what you do.  By being the best, you increase your opportunities for success, as well as destroy ridiculous and erroneous racial perceptions.  Your success will be rewarded with a high compensation rate, but also in the pride you have in being the first!

Be the Best!  Your comments are appreciated