Do Sales People Regularly Abuse Wining And Dining?

JH
John Honovich
Jun 26, 2017
IPVM

This quote from an end user spurred this question:

I've heard many salespeople talk about the clients they wine and dine, and it is crystal clear to me that the salespeople are doing this as a way to very eat well for no money.

Obviously, not all sales people do this and surely at least a few do, but is this a common problem? How much of sales people taking people out is a function of clear business benefit vs sales people personally enjoying it?

UM
Undisclosed Manufacturer #1
Jun 27, 2017

I would hope not, but I do know some who seem to schedule their lunches and dinners before they even know who/what their targets are for the territory.  I know one sales guy that says, "It is not a successful trip unless I eat at XYZ, before I go home."  

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UM
Undisclosed Manufacturer #2
Jun 29, 2017

I've seen people abuse it, and they never last for long.  They usually have character issues in general that tend to be self limiting factors.  Not always the case, but more often than not.

 

That being said, everyone has to work, and everyone has to eat.  If you can enjoy your job, and enjoy your meal, while doing your job well, this is a win-win-win for you, your customer, and your employer.

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SE
Sam Eskew
Jul 03, 2017

In my 40 plus years of business from sales to production to management to ownership, I have seen all sorts of policies on meals and entertainment. Some companies, and certainly some sales people, treat the expense account as a form of compensation. Back in the 70's-80's, there were certain companies I dealt with that paid their sales people rather poorly, but did not mind how much they spent. It was expected that they would even take their families on some trips and have club memberships. There are no payroll taxes on those expenses. Which is why the IRS started making rules about clubs and entertainment.

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UM
Undisclosed Manufacturer #3
Jul 04, 2017

I take customers out to a nice restaurant for dinner to THANK them for their business, not to WIN their business. It's a 30 year policy I have lived by. Lunch is a meeting and does not cost much as it either a lunch and learn for a group or a meeting with a key personal to discuss strategy. Dinner typically incudes wine which escalates the price dramatically.

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