Professional Sales and Entertainment

Professor Michael Rodriguez

Agenda

• Discuss Types of Entertaining in Sales• Why We Should Be So Concerned• Importance of Entertaining in Sales• Consequences• Examples

Types of Entertaining in Sales

• Dinners• Golf Outings• Happy Hour• Lunch• Conferences• Network Events• “Boondoggles”

Why Should We Be Concerned?

• Most of the time, its free and almost unlimited

• Go from beer, mild drinks to harder liquor– Martini’s– Shots– Scotch, Vodka, Gin, etc.

Why Is Entertaining So Important?

• Part of the job• Networking, schmoozing• Sales has the biggest expense accounts• Revenue generators; freedom to spend

more• Salespeople seen as “athletes” of the firm• Part of managing your career

What are the consequences?

• Driving Under the Influence (DUI)• Jeopardize Career

– reputation, – promotion – risk of being fired.

• Going over on expenses. – Abuse of budget. – Get taken advantage of by clients

• Make poor decisions

Publicized Event• Robert McCormick, CEO of Savvis • “Business Meeting” at gentleman’s club in

NY• Charged $241,000 on AMEX• Refused to pay the bill, claiming fraud. • What do you think happened?

– AMEX sued McCormick and Savvis– McCormick was forced to resign– Created a PR nightmare for Savvis

Client Abuse• John took client out to dinner and stepped

away from the table. While gone, client ordered $1000 bottle of champagne.

• What should John do?

• What do you think happened?

Executive makes fool of himself!

• Chris, a senior salesman, is invited to big, industry conference and has about 10 – 15 cocktails in about 3 hour period.

• Chris becomes abrasive, rude, and obnoxious to the wait staff and gets escorted out of the conference.

• Outraged, Chris goes outside and jumps on top of a cab yelling at security – in front of clients, vendors, peers, competition..

• What do you think happened to Chris?

Poor Decision Making• Bob was an accountant for a big firm and was sent out

on assignment for several months during tax season.

• Bob had a problem drinking and driving and already had his license suspended twice.

• Bob goes on assignment in Arizona, takes out client,

has a couple and gets behind a wheel.

• Bob gets pulled over.

• What happened to Bob?

Jeopardize Career• Patty was a straight A student. Graduated top of her

class in finance. She had several job offers from top investment firms after graduation and accepted one at $50k.

• During her college career, Patty was caught with fake ID and was arrested for underage drinking and brought up on felony charges

• Patty failed to report this to her new employer

• What do you think happened to Patty?

What to do?• Set limits

– Time – Budget

• Set expectations with client, tactfully– “I know this great little restaurant downtown”

• Communicate with Management• Talk to waiter, server, or bartender before

hand– You are the one paying the bill!

• Know the Difference between Entertaining and Socializing

Who is your best source for guidance?

• Management?

• Human Resources?

• Your client?

• YOUR JUDGEMENT IS YOUR BEST RESOURCE!!

Best Recommendation I Can Give

Use Entertainment to Strengthen the Relationship;

Not Establish One.