In 1996 I was trying to penetrate an account in Daytona Beach, and was doing a very good job of implementing my strategy. I had seen the technical buyers, the end-users, and management. All of them were impressed with the information I brought to them and the demos we had done. The only department left was purchasing, and I was warned about this particular purchasing agent by the other groups and my boss. He had a long-term relationship with our competitor, including a weekly golf outing.
Well, I finally got an appointment. Knowing that the purchasing agent liked to be entertained, I suggested that our next meeting be over lunch. He looked at me like the 20-something kid that I was and said, in a very demeaning way: “Don’t you think I should buy something from you before you take me to lunch?”
Wow – right in the gut! As much of a jerk as he was (and he continued to be for years even though I won a lot of their business), he was right.
The answer to my question in the title of this post isn’t just “what” but also “who” you are entertaining. Don’t attempt to win business by entertaining. Win the sale first, and then show your appreciation for business through entertaining. My rule of thumb is to spend 90% of your entertainment budget on the top clients that make up 50% of your sales. For example, if your territory generates $4M, with 10 clients buying $2M and 350 clients buying the other $2M, you should spend 90% of your entertainment dollars on those 10 clients. There are exceptions, but this is a very good rule of thumb.
I hope this helps, and I hope you never feel like I did that afternoon in Daytona Beach!
