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.