JAMES SAMUEL KNOX THE Science A^v^A^Tl of Selling By JAMES SAMUEL KNOX, A. M., L. L. D. Author of Science of Applied Salesmanship, The Science and Art of Selling. Successful Management. Salesman- ship and Business Efnciency. Personal Efficiency. KNOX BUSINESS BOOK COMPANY CLEVELAND OHIO 1922 COPYRIGHT 1921 The Knox Business Book Company Entered at Stationers' Hall, London, England. Protected by International Copyright in Great Britain and all her Colonies and under the provisions of the Berne Convention, in Belgium, France, Italy, Spain, Switzerland, Tunis, Hayti, Luxemburg, Monaco, Montenegro and Norway. All rights reserved. (Printed in the United States.) AGRIC, DEPT. ^i2#^*^ . &^<:.r^^^^; t The Science and Art of Selling CONTENTS Part I. — Fundamental Factors in Business CHAPTER PAGE I. Economics of Distribution 1 II. Trade Channels 13 III. Retail Store Management 23 IV. Better Bookkeeping Procedure ,.... 28 V. A Short Cut in Figuring Profit 30 VI. The Psychology of Business. _ 37 VII. Human Instincts... 49 VIII. The Emotions _. 59 IX. The Five Senses._ 63 Part II. — The Basic Principles of Salesmanship X. Why Salesmanship Has Developed So Slowly.... 77 XI. Salesmanship Analysis 85 XII. Mental Law of Sale 99 XIII. The Approach 109 XIV. Arousing Interest 119 XV. Producing Conviction. 125 XVI. Creating Desire 145 XVII. Resolve to Buy 157 XVIII. Laws of Suggestion 173 Part III. — Retail Salesmanship XIX. The Retail Salesman 191 XX. Suggestions to Salespeople 203 XXI. Model Selling Talks 222 XXII. Talks to Retail Salesmen 243 XXIII. Retail Selling Methods..... 260 XXIV. Retail Store Training 271 XXV. Management Problems.- 287 Part IV. — Efficient and Inefficient Selling Methods XXVI. Analyses of Sales 293 Illustration from experience — Chamber of Commerce investigation — Everybody has something to sell — ■ Illustration of poor salesmanship — Training the clerk — When new products come in — Advertising council — A satisfied customer — Reading your cus- CONTENTS— Conhnwerf CHAPTM PAGE tomer — Displaying merchandise — Importance of col- or — Motives that move buyers — Study human na- ture — Study your goods. Part V. — Specialty Salesmanship XXVII. Origin of Salesmanship Instruction 320 Subscription Book Salesmanship— Value of Selling talks — Business logic — Value of Contrast — Value of School System — Checking yourself. XXVIII. Model Sales Demonstrations 344 Electric cleaner — Paint — Brush set — -Insurance. PLATES AND GRAPHIC CHARTS CHART PAGE I. The Science and Art of Selling II. Fundamental Factors in Business III. Principal Factors of Production and Distribution 2 IV. Methods of Marketing 12 V. Organization of Manufacturers Who Distribute Direct to Consumers 18 VI. Modern Sales Organization 18 VII. Business Fundamentals of Retail Store Manage- ment - 22 VIII. Psychology of Business 36 IX. Fundamental Laws of Human Nature 40 X. Human Instincts 48 XI. Emotions 58 XII. The Five Senses 62 XIII. Why Salesmanship Has Developed So Slowly.... 76 XIV. Mental Law of Sale 98 XV. Introduction 108 XVI. Arousing Interest 118 XVII. Producing Conviction 124 XVIII. Creating Desire 144 XIX. Resolve to Buy.. 156 XX. Laws of Suggestion 172 XXI. Retail Salespeople 190 50 Things That Will Help You Get Ahead 254 Index 367 INTRODUCTION Mr. J. S. Knox, author of this book, is a practical salesman, with many years of experience in selling vari- ous commodities. He has thought long and deeply on the problems of life, business and success, and has assembled ideas, facts, and experience from all sources for this publication. It is not overstating it to say that he has condensed into one volume the essence of a dozen books, all of which he has illuminated and made vital by his own practical and sympathetic understanding of this im- portant subject. "The Science and Art of Selling" is sweepingly com- prehensive, and decidedly concrete. It deals with the laws that govern the human mind, and shows that a knowledge of those laws is essential to advancement of any kind, either in business or in the professions. Teachers, writers and others who love to contemplate salesmanship as a science, will find herein much fresh and interesting material. All classes will enjoy and appreciate the definitions of salesmanship, and their application to every day activi- ties, showing how ''Every person is selling something." These explanations will do much to help you place your- self in the business world. They also point the way to promotions and greater success. Merchants, large and small, and salesmen, trained and untrained, will relish the "Selling talks" and valu- able suggestions for making sales, based on information obtained at first hand by the author. No matter whether you are selling ideas or merchan- dise you will find inspiration and practical help in this book. ALBERT SIDNEY GREGG. PREFACE The problem of distribution is one of the great prob- lems of the country. The gap between the producer and the manufacturer, on the one hand and the con- sumer on the other, is too large. On every side the claim is made that the farmer gets too little for his produce while the people pay too much. Every bit of unnecessary waste must be eliminated from the handling of goods. This cannot be done through ignorance, which means waste, and expense that must be paid by the consumer. It must be accomplished by a careful technical training of- every individual who has anything to do with the handling of merchandise — travel- ing salesmen, clerks and merchants alike. Every untrained salesman, merchant or clerk, adds to the high cost of living, which must be paid by the pubHc. The first part of "The Science and Art of Selling" de- fines the economic factors which enter into the cost of marketing goods. Lack of this knowledge is causing an enormous number of failures in the business world. The second department, which comprises the largest part of the book, is an analysis of the human mind and how to deal with and influence it. This is psychologically fun- damental. No one should expect to be successful as a salesman, advertising man, letter-writer or business man without such training. Instruction is given both by pre- cept and example. Efficient and inefficient selling methods are analyzed. Why certain methods result in failure and why others are successful and the reasons therefor, are given. Selections from the best retail and specialty selling talks to be found in the country have been included in this volume. The book is inspirational, practical, interesting and readable. The object has been not only to express ideas but to effectively impress those ideas upon the reader. In other words, the book is written in the language of Salesmanship. The English of Salesmanship is quite different from the English of Literature. The English of Literature aims to entertain, describe or instruct. The English of Salesmanship aims to stir the human mind to action. The ideas are driven home with a vigor- ous, inspirational style that arouses enthusiasm and carries conviction. This style of delivery is a product of psychology, logic, an insight into human nature, mental strategy, a knowledge of the goods and the use of ef- fective words with their proper arrangement into short sentences. This is the English of Salesmanship whether spoken or written. The book deals with principles and their application; in short, the Science and Art of .Salesmanship. It lays the foundation for eventual earning power ranging from $5,000 to $15,000 a year. It develops inquiring minds. It causes the student to ask the reason why. It aims to put him into the mental attitude of Kipling when he said: 'T have six valiant fighting men. They taught me all I know. They are— "What" and "Why" and "When" and "How" and "Where" and "Who." In the preparation of this work we have received valuable assistance from hundreds of business men and teachers. Great concerns have favored us with their selling arguments, for which we thank them. We are particularly grateful to Mr. M. R. Carlson for his constructive suggestions, to Professor P. B. Ar- mold for his pedagogical guidance, and to Albert Sidney Gregg, author and magazine writer, for his valuable lit- erary criticisms. This book is the final product of more than twenty- five years of active experience in the field of salesman- ship, sales management, sales instruction and sales and business counsel. There is no untried theory in it. Our aim has been to prepare a work that from beginning to end would be of real practical value to the student. We have spared neither time nor expense to accomplish this purpose. Cleveland, Ohio, July 15, 1921. Important Factors of Production and Distribution Methods of Marketing Sales Organizations Management How to Increase Your Salary Basic Laws of Human Nature Human Instincts Emotions Five Senses BASIC PRINCIPLES OF SALESMANSHIP Why Salesmanship Has Developed So Slowly Qualifications for Selling MENTAL LAW OF SALE Salesmanship Analyzed Suggestion Approach Attention Interest Conviction Desire Resolve to Buy Close RETAIL SALESMANSHIP The Retail Salesman Types of Customers Model Sales Talks Sales Demonstrations Talks to Retail Salesmen Suggestions to Salesprople Retail Selling Methods Retail Store Training Management Problems EFFICIENT AND INEFFICIENT SELLING METHODS Illustrated Illustrations of Efficient and Inefficient Selling Methods From Personal Investigation o( Hundreds of Stores Parts SPECIALTY SALESMANSHIP Origin of Salesmanship Instructions Subscjiption Book Salesmanship Model Selling Talks House to House Selling Specialty Demonstrations Insurance CHART I. THE SCIENCE AND ART OF SELLING FUNDAMENTAL FACTORS IN BUSI NESS YOU MAY BE THE HIGHEST TYPEOF SALESMAN BUT THROUGH LACK OF BUSI NESS FUNDAMENTALS BE AN ECONOMIC FAILURE CHART II. FUNDAMENTAL FACTORS IN BUSINESS PART I Fundamental Factors in Business CHAPTER I Economics of Distribution Fundamental Your success in salesmanship depends Factors in upon two fundamental factors: First, Salesmanship your knowledge of business economics and your understanding of business psychology; second, how you utilize that information after you get it. Economics Many salesmen have a fair insight into and Human the science of human nature as it relates Nature to the sale of goods, but their grasp of economic factors entering into the selling price of an article is often very limited. The Guesser A merchant may be a master retail sales- Courts man, but unless he is able to determine Failure every item of cost, and knows how to mark his goods so as to insure a definite net profit, he is merely guessing, and to guess is to court failure. To Help You It is our aim in this book to teach you Succeed how to become a successful salesman. But we are more interested in helping you evolve into a prosperous business man or woman. 1 CHART III. PRINCIPAL FACTORS OF PRODUCTION AND DISTRIBUTION 2 EcoNo:\iics OF Dtstrirutiox This first chapter will therefore be devoted to a study of the general system of distribution which is operative in business to-day. Graphic In the interesting graphic charts of various Charts marketing systems given elsewhere you will find mental pictures showing how an article finds its way from the producer through the channels of trade to the ultimate consumer. Study these charts care- fully. They will aid you at every step in your eflForts to understand this subject. Our present system of dis- tribution in the case of many products is very wasteful and extravagant. Try to work out practical, improved methods which you believe would effect a saving for the final purchaser. The Retail The retail merchant is a factor in an econ- Merchant omic distributing system which exists for the purpose of supplying human wants, at a profit, to each factor in the system. He is a link in a long service chain which carries goods from the original producer to the person who eventually consumes them. Producer Let us now consider the entire distributing to the system of which the retail merchant is a Consumer part ; and in order that the various factors may be understood the following definitions are given: 1. The producer is the man or concern that is instru- mental in actually producing the article. The producer sometimes, but not always, acts as his own selling agent. Science and Art of Selltnc 2. The manufacturer is the man or concern that buys raw materials and through a manufacturing process changes the raw material or combination of materials into a usable product. The manufacturer usually dis- poses of his product through middlemen. All those who handle goods in their progress from the producer or manufacturer to the ultimate consumer are termed middlemen. 3. The broker, commission man, sales agent, exporter and importer are men or firms that assist the producer or manufacturer, in disposing of his product to large buyers and distributing concerns. They sell through personal effort, traveling salesmen and by direct mail. 4. The wholesaler sells direct to the retailer, through traveling salesmen and direct mail. 5. The jobber performs the same function as the wholesaler. 6. The general mail-order house buys direct from the manufacturer, or manufactures its own products. It sells direct to the consumer through catalogs and direct mail advertising. 7. The retailer as a rule buys through middlemen. He sells direct to the consumer through store display and clerks. 8. The banker is an important factor in every trans- action. Payment for goods is generally made through a bank except small purchases which the consumer makes in the retail store. Economics of Distribution Understand Man has failed to study the economics Human of distribution and himself in relation to Nature it. He has failed to understand the laws governing his mind, and these laws after all are simple enough when once understood. Man has failed to study and understand human nature ; the feel- ings, habits, instincts and thought processes of himself and his fellows, and how to influence people as a result of that knowledge. Of course, we have had psycholo- gists, but the average student did not study far enough in school to learn anything about psychology, and fur- thermore, most of our texts on the subject are so ab- stract that the ordinary man without much education is unable to understand them. In other words, he has not known how to apply the theories of psychology to the solution of his own problems. The Problem In order that we may have a better un- of derstanding of salesmanship we must do Distribution more than simply study the psychology of making a sale. We must study the economic and psychological forces back of the sale ; we must, at least to some extent, make a study of the prob- lem of distribution. With the exception of a few growers' associations very little has been done among the farm- ers of America to efficiently dispose of their products. There is too much margin between the price which the farmer gets for his produce and the price which the consumer is obliged to pay, particularly the consumers in the great cities. Markets have been established in many places. In a few of these markets farmers have been able to sell their products very successfully, at the low- Science and Art of Selling est possible cost to the consumer and at a fair margin of profit to themselves. In some Canadian towns and cit- ies, the farmers bring their pork, beef and vegetables to a designated open space and sell directly to the public. It is quite possible that better roads and the automobile truck will be an effective means of bringing the farmer's produce and the city's kitchen closer together. Need of The farmer must learn how to market his Improved products at a greater profit to himself and Methods less expense to the consumer. The time is not far distant when the farmers in the great meat producing states w^ill realize the inefficiency of shipping their cattle and hogs hundreds of miles to mar- ket and then buying the dressed meat at their local shops ; not only paying freight both ways but making profits for several concerns. There will eventually be more packing houses and less duplication of hauling and hand- ling. In discussing this subject a prominent writer has the following to say: "Investigations of the high cost of living continually emphasize the lack of efficiency in the distribution of goods. While calls are going out from all quarters for increased production, it is unfortunate that there is little or no evidence of effort to bring down the cost of distributing things, once they are produced. Inefficiency in this respect is found all along the line. While farmers find it difficult to grow crops to feed the world, they also face marketing methods that handicap profitable production. Farmers cannot get enough for their produce to warrant paying sufficient wages to keep Economics of Distribution the young men on the farms or to attract new workers, and before the food they raise reaches the city's table it costs an exorbitant price. Distribution "It is also costing too much to get goods of Raw from the manufacturer to the ultimate Materials consumer. In the distribution of raw materials from which the manufactured goods are made, the necessary articles pass through sev- eral hands before they reach the manufacturing plant. According to the present custom liberal profits are paid for brokerage, freight, insurance, Interest on loans and storage charges, so that the manufacturer pays double and sometimes more than double the price paid to the original producer of the raw material to be used In mak- ing the finished article. Then after an article has been manufactured — the result of modern machinery and efficient production methods — It must sometimes travel through a course of brokers, brokers' agents, jobbers, wholesalers and speculators before it reaches the retail- ers' shelves. Each transaction means added profits and added expense, which the consumer must pay. "It Is commonly known that the manufacturing cost of many articles is not more than 20% of the price paid by the consumer, which means that if you pay $1.00 for an article, 80 cents of that $1.00 goes to pay the cost of getting the article from the manufacturer to you, and the 20 cents was the actual cost of making the article. By this time there is no comparison of the original cost of the raw material from which the product was made. Some of this added expense is necessary. Some of the Science and Art of vSeeltng profits made in the distribution of goods are honest. But a considerable portion of the additional amount paid by consumers goes into the coffers of those who seldom see the goods, never assist in their production and never meet the actual expense entailed in the process of dis- tribution, which would all be unnecessary if we gave as much attention to efficient methods of distributing things as we do to manufacturing them. There is hardly a commodity which does not cost a great deal more than it would because of the inefficient, unbusinesslike, unnec- essary and antiquated clog in our commercial machinery — poor distribution methods. It is too much to hope for the immediate correction of this evil, but it is an achieve- ment eminently to be desired and now is the time for business producers to initiate a nation wide campaign to bring sources of production and the consumer closer to- gether." Economic In some places there are twice as many Waste jobbers and twice as many traveling sales- men as are economically needed. There are double the number of retail stores in the country as are needed to efficiently serve the public. This added cost must of course be paid by the people who buy and use the goods. We will never have efficient distribution until every dollar of economic waste is eliminated. In some communities we occasionally find a merchant who feels that the business of the community is to support him; on the other hand, he should realize that his busi- ness is to serve the community efficiently and economi- cally. If he cannot do this or will not do it, he should Economics of Distribution be eliminated and his place taken by a man who can and will. A Change is But a great change in the methods of Noticeable distribution is noticeable. Twenty years ago about 95% of the business men of this country said salesmen were born, not made. Now •business men agree that their salesmen must be trained because competition is so strong that no business concern can long exist if Its sales organization is untrained and inefficient. The untrained salesman now is a financial luxury and therefore an economic impossibility. Basic Law Why this great change in public sentiment ? of Human Twenty years ago 95% of the business men Nature of the country actually believed that sales- men could not be trained. They believed this because they were not trained themselves, and it is a fundamental law of human nature and of salesmanship that what man does not understand he opposes. Through all the history of the world this law has operated, in busi- ness, In religion, and politics. Jesus, the Savior of the world, was crucified because certain men did not under- stand; Socrates was obliged to drink the hemlock for the same reason ; Burroughs invented an adding machine that revolutionized the banking systems of the world and yet It took Burroughs' salesmen four years to sell an adding machine to one of the great banks in Chicago. That bank has now more than one hundred Burroughs. It needed those machines then as badly as It does now, but it did not understand the machine, and for that rea- son opposed the purchase. Years ago Chauncey M. De- 10 Science and Art of Selling pew said it was forty years from the time an idea originated until it was enacted into national law. What people do not understand they oppose and that is a great law for the salesman to realize. SUMMARY A great many business men and salespeople do not- give due consideration to the economics of distribution, and the factors entering into its consideration. Human nature is one of the greatest factors and with- out doubt one of the most neglected. The five great M's of the business world are Money, Materials, Machinery, Markets and Men. The greatest of these is Men. The farmer must learn to market his products at a greater profit to himself and less expense to the con- sumer. It is costing too much to get goods from the manu- facturer to the consumer. QUESTIONS AND EXERCISES 1.- What are the two fundamental factors of success- ful salesmanship? 2. Name and give functions of each of the various factors from producer to consumer. 3. What is meant by the psychology of making a sale? 4. Discuss selling from the producers* standpoint. 5. Give some causes of economic waste to-day. METHODS OF MARKETING PRODUCER OR MANUFACTURER , CONSUMER CHART IV. METHODS OF MARKETING 12 CHAPTER II Trade Channels The An ideal system of distribution is one in which Ideal there are no more middlemen than are abso- lutely necessary for effective and economical distribution of products. In some branches of trade the expense added by the extra handling of merchandise through unnecessary middlemen is enormous. The price of some farm products is sometimes increased as high as 300% to 400% by the time they reach the city con- sumer. Illustration The first cantaloupes shipped to Eastern markets are raised in the Imperial Val- ley, California. Harvesting and shipping these canta- loupes begins about the first of May. From that time until the end of the season, dozens of jobbers and buy- ers are to be found on the streets in the cantaloupe shipping centers. The average farmer raises a few acres of cantaloupes. When they are ready for market, he picks and crates them in the boxes so familiar to you. Then he hauls his melons to town. There they are pur- chased by a local buyer who pays the farmer about 3 cents each for the same cantaloupes that are sold for 20 cents or 25 cents when they reach the city markets. The local buyer sells his day's purchase to some ship- ping broker, who in turn sells to a Chicago, New York or other Eastern broker. The Eastern broker sells those cantaloupes to a jobbing or distributing concern, who sells them to the retail merchant, from whom you pur- chase your cantaloupe for breakfast. About 3 cents of 13 14 Science and Art of Selling the price you pay for the cantaloupe goes to the farmer for raising, packing and hauHng the melon to his local shipping point. The difference between 3 cents and 15 cents, 20 cents or 25 cents, which you pay for the melon, goes to the middlemen for getting the melon to your table. Methods The average man is constitutionally lazy. of the The average retail merchant is no exception Retailer and he usually buys. his merchandise along the line of least resistance to him, little re- alizing the extra cost to his estabHshment. Most retail merchants buy all their merchandise from jobbers' sales- men who call upon them at regular intervals and take orders for all stock needed; pay their invoices at what- ever price is billed, and then add their regular percentage of profit to establish their retail selling price. During a period of rising prices it doesn't make any difference to the average retailer how much prices increase, he merely adds his regular percentage of profit to invoices received and pushes the increase on for the consumer to pay. It is true that there usually is a prevailing standard price on all staple articles. However, it is always the unusual idea that gets the unusual result and the live merchant will study his merchandise needs with unusual shrewd- ness. One Way to The retail merchant who is studying con- Cut Costs ditions and who knows the f needs of his business will watch for opportunities to buy "job lots" of merchandise in the market benters. He will go to the nearby city markets and purchase bargains which he knows he can sell. He will rush his unusual Trade Channels 15 "buys" to his store, mark them at a fair margin of profit and then advertise the sale to all of his trade at once. This merchant will keep himself posted on the current market prices on every article sold in his store. He will buy all merchandise as near its source of production as possible. Eliminating At present an effort is being made by Middlemen many large manufacturers to eliminate Through the middlemen and promote sales by ad- Advertising vertising directly to the consumer. By making the public familiar with the name of the article and its merits, a demand is developed es- pecially if the advertising encourages people to call on the retailer when they wish to buy. Responding to the inquiries the retailer will seek to procure the article wanted; and where a strong desire has been created there is not so much need for several salesmen, as in the case of unadvertised goods. Strong consumer demand lessens sales effort and simplifies distribution. Necessity of While all products have the consumer as Middlemen their ultimate destination, conditions are often too complex for the consumer to come into direct contact with the producer and buy what he needs. Take such articles as wheat, corn, cotton and wool for example; it is inevitable that the bulk of the production in these lines should be collected little by little in many markets from individual producers and subject to the handling of various commission men, brok- ers, and agents — all of whom must use the services of salesmen — before the ultimate consumer can be served. t CHART V, MANUFACTURER'S ORGANIZATION 16 Trade Channels 17 Simplest In a few cases, o£ course, it is possible Form of for one to buy direct from the farmer Marketing and the producer. This is marketing re- duced to its most desirable form. How- ever, business and living conditions are too complex for a large proportion of a civilized people to adopt such simple methods. It is necessary usually to utilize certain business machinery — such as salesmanship in its various forms — in order to so distribute and make known the product that the consumer may obtain it conveniently. Modern The modern tendency is to reduce the num- Tendency ber of middlemen, but it should not be taken for granted that the jobber, or wholesaler is always unnecessary, or that his only office is to add to the retail price of the article. In many instances he is an indispensable part of the manufacturer's distributing plan. In the case of an article like catsup or matches, so little is sold by the average small town grocer that the manufacturer cannot profitably undertake to open direct selling negotiations with the retailers or consumers. Manufacturer When a great consumer demand has been Sells Direct created for an article like Coca-Cola, to Retailer Uneeda Biscuits, 57 Varieties and many other articles that are known in every household in the United States, it is possible for the man- ufacturer of that article to eliminate all middlemen and sell direct to the retailer, as the makers of the above named articles do. Such manufacturers maintain their own sales organizations for calling upon the retail deal- 2 1 O H 06 < W a S oi^ 1 o H O^ CHAR SALES SELL g § s Q Q ^ 1 M "pi '^ g 1^ o I Id H J < < U CHART VI. MODERN SALES ORGANIZATION 18 Trade Channels 19 ers, and do not depend upon jobbers' salesmen for the distribution of their products. Manufacturer Some manufacturers control all fac- Sells Through tors of the distribution and sale of Own Stores their products, and have established their own exclusive retail stores in principal cities and populous communities. This is done successfully by several prominent shoe manufacturers and others. Originator of The American Magazine credits El- Manufacturer's mer J. Bliss with being the originator Chain Shoe Store of the single-price chain-shoe-store idea. It says : "Starting with a little basement shoe store in an unpromising sales section of Boston, Mr. Bliss has built up one of the most important chains of retail shoe stores in the world. To-day he owns three factories and sixty stores, and his shoes are sold in all quarters of the globe by more than 1,600 agencies. Mr. Bliss was the originator of the single-price chain-shoe-store idea. In addition to many record-break- ing feats of salesmanship, he has invented and patented twenty-one devices in connection with the making of shoes, and has patents pending on eight more." Manufacturer General advertisers of the class of the Sells Direct National Cash Register Company, Bur- to Consumer roughs Adding Machine Company, the Addressograph Company, the typewriter companies and manufacturers of many well known spec- ialties, insurance companies and subscription book pub- 20 Science and Art of Selling Ushers, do not dispose of their products through the reg- ular channels of trade. They maintain their own offices and sales organizations in principal cities throughout the country. It is a large undertaking to establish such sales offices. It requires a vast amount of capital and big cal- iber executives to hire, train and manage hundreds of salesmen operating all over the globe. Nevertheless, in the end this is the most profitable and sometimes the only possible sales plan for concerns of this type. As they cannot expect aggressive sales work from the un- trained salesmen in the average retail establishments, they have no recourse but to organize, train and manage their own sales force. Trained Salesmen representing this class of manu- Specialty facturers are the highest type and best Salesmen trained salesmen in the field of commercial distribution. Also, they are among the best paid men to be found in the country. The salesmen for one manufacturer of this class, who hires, trains and employs hundreds of salesmen all over the world, aver- aged a little more than $7,000.00 each in commissions earned last year. Many trained- salesmen earn more than $10,000.00 a year in commissions and salary. The com^ missions earned by one insurance salesman of my ac- quaintance amounted to more than $50,000.00 for the first nine months of this year. His commissions and bonuses will doubtless total more than the President's salary, $75,(XX).00, before this year ends. He spent years in training to be a high type salesman, and he has been well paid for his efforts. It will pay you, too, to prepare for the big sales positions. Methods used by successful Trade Channels 21 salesmen in this field will be explained in the chapter entitled "Specialty Salesmanship." You should spare no effort to master all of the principles and ideas outlined in that chapter. You will be well repaid for your time and study. You may succeed without mastering the prin- ciples of Scientific Salesmanship, but not so well. When 95% of all men fail in business can you afford to take a chance not to prepare yourself for the best possible po- sition you are capable of holding? Q VEST IONS AND EXERCISES 1. Trace a bag of wheat from the producer until he buys it in the form of bread for his Sunday dinner. 2. Subject for debate, Resolved: That the middle- man is a necessity. 3. What effect does good advertising have on the middleman ? 4. What problems are being considered by the Nat- ional Federation of Farm Bureaus? 5. Discuss pro and con, the co-operative store plan for employees. 6. Name some manufactured products that are sold direct to the consumer. 7. Describe the "chain store" plan. Ov2 71 >••— ^v t H C §.5 tfl .9 SJ ^ S(3 SB 2 — 1 Jl ^^s' hi) »• " l^„ So S lU 2f K ^ „_ ^ ft. -g » t^ 1 c 3 "i Jl tu .H ll I ■ 11 1 1 ■< LTI c 1 < ■^1 11 1! 5 Si ^1 f u CHART VII, BUSINESS FUNDAMENTALS 22 CHAPTER III Retail Store Management Necessity for Efficient Accounting Records Startling During 1920 we made a personal survey Facts among hundreds of retail merchants, work- ing with- many different jobbers' and manu- facturers' salesmen. This investigation showed that 90% to 97% of the retail merchants in small stores do not make or possess efficient records of their business trans- actions. They know very little about their business, and don't know that they don't know. They are contin- ually guessing ; guessing prices will go up, guessing prices will come down, guessing business is bad, guessing busi- ness is good. The Man One of the questions we asked the aver- Who Guesses age retail store proprietor in our survey was this : "Has your business been bet- ter this year than it was last year?" The faltering, hes- itating answer we received from nearly every merchant who did not know the vital facts about his affairs was something like this : "O, I guess it has been a little bet- ter this year; we have been very busy lately." Or he would probably say : '*No, I don't think our business is as good this year as it was last year. You see money is getting tight," etc. 23 34 Science and Art of Selling His Future When we asked him about his plans for the future (this man, with no accurate account- ing records of his business) the usual answer we got was: "Well, you can't tell what will happen. You see this business is different. It all depends upon how things turn out next year. I can't make plans now." The Man Occasionally we would find the excep- Who Knows tional retail proprietor, one of the 5% class, who kept efficient accounting rec- ords and knew the vital factors that affect business. We would ask him the same question: "Has your business been better this year than it was last year ?" His simple and convincing answer was always definite and to the point, for example : "Our business has been 26% better this year. Our total sales so far have been $80,603. Our total sales at this date last year were $59,646. We find our increase has been the result of such and such ideas." Plans for It was a pleasure to ask such a man about the Future his plans for the future. At once he would unconsciously display his spirit of confi- dence, his mastery of fear, and his ability to look forward with a vision of understanding. This was the result of the knowledge he had secured from his accurate records. Which Man Picture in your mind two men at the Will Win? bottom of a strange, high treacherous mountain. Their task is to reach the other side. One man is blindfolded. The other has keen eyesight and he is studying a map of the trail ahead. Retail Store Management 25 From where you stand you can see that the trail leading upward is narrow,, very steep and rocky, and as it winds back and forth you see many sharp and dangerous turns. Thousands of men have tried to climb the mountain of business success and only 5% have ever reached the heights. Ninety-five out of every hundred have fallen by the wayside. Do you think there is any chance for the blindfolded man to reach the top? No, he is doomed before he starts. And the man who attempts to manage a retail store or any other business without efficient records is like a blindfolded man trying to make his way up the side of a mountain. He is sure to fail. The Price of In discussing this subject the Bureau of Lax Methods Business Research of Harvard Univers- ity says ; "A surprisingly large proportion of the retail grocers of the country do not keep accounts that are even approximately accurate. The result is un- stable business, danger of frequent failures, and a heavy credit rush to wholesalers and manufacturers. This is unsound from the business standpoint and a heavy bur- den to the public, which eventually pays the price of lax methods." Need of Possibly in no other business is an accurate Accurate accounting system so necessary as in the Accounting grocery business, because in that business the net profits are very small. Yet in no other business is there so much accounting laxity, care- lessness and lack of definite knowledge. This is due to 26 Science and Art of Selling the fact that most of the men engaged in this business had a very limited school education to begin with and in most cases no training in advanced accounting methods or even in bookkeeping. We are beginning to realize that every boy and girl should be thoroughly grounded in bookkeeping no matter what trade, business or profession he or she may intend to engage in, because accurate ac- counting is the foundation of all business. Anything else is a foundation of sand, and when the storm comes as it always does, the foundation crumbles and the structure speedily goes to pieces. Study of The Bureau of Business Research of 1000 Grocery Harvard Graduate School of Business Stores Administration made a study of more than a thousand grocery stores covering a period from 1914 to 1919. As a result of this survey they were able to compile figures that give a clear analy- sis of practically every item entering into the manage- ment of a retail grocery store. The student of retail salesmanship should know the facts pertaining to retail store management. It should be his ambition to evolve out of mere selling into the larger phase of the busi- ness — that of managing or owning. He can hope to make such advance only after becoming possessed of the facts surrounding positions of greater responsibility and larger influence. Following are the expense statistics compiled by the Harvard Graduate School of Business Adminis- tration from a study of more than one thousand grocery stores : Retail Store Management 37 OPERATING EXPENSES IN RETAIL GROCERY STORES Net Sales 100% Lowest Highest Common % % % Wages of Salesforce 3.0 8.7 4.7 Advertising 0.01 2.82 0.2 Wrapping and Other Selling Exp. 0.11 2.26 0.55 Total Selling Expense 3.41 9.94 5.8 Wages of Delivery Force 0.26 2.84 1.4 Other Delivery Expense 0.04 2.37 1.0 Total Delivery Expense 0.66 4.36 2.4 Buying, Management and Office Salaries 0.58 5.97 ^ 1.6 Office Supplies, Postage, Other Buying and Management Exp 0.01 1.18 0.1 Total Buying and Management Expense 0.78 6.38 1.7 Total Interest 0.15 2.2B 0.9 Rent 0.33 3.45 1.1 Heat, Light and Power .................. 0.07 0.98 0.25 Taxes (except income and build- ings) 0.01 0.49 0.13 Insurance (except on buildings).. 0.02 0.62 0.14 Repairs of Store Equipment 0.01 0.43 0.08 Depreciation of Store Equipment.. 0.07 2.17 0.25 Total Fixed Charges and Upkeep Expense 1.35 6.82 3.0 Miscellaneous Expense 0.19 1.97 0.5 Losses from Bad Debts 0.04 3.31 0.4 Total Expense '. 9.0 22.8 14.0 Gross and Net Profit Gross Profit 10.5 26.M 16.9 Net Profit (or Loss) Loss 6.05 Profit 9.29 Profit 2.3 Similar figures might be secured for every retail or general business. The basic business principles are ex- actly the same in all of them. The only thing that is different is the figures. CHAPTER IV Better Bookkeeping Procedure A Primer Through its business service department on Double the National Association of Credit ]\Ien Entry has issued a booklet on bookkeeping, tell- ing how to do it. Its title is "A Business Enterprise," and it is a primer on a simplified form of double entry, compressed into twenty-four pages, yet clearly and completely explaining the method step by step. The process is so simple that only one book is necessary, a loose-leaf book with five indices marking off as many sections, one each for assets, liabilities, income, expenses and journal. This, with checkbook and file cases for bills and correspondence, is all that is required to enable a man to know, if he makes the entries as in- structed, exactly where his business stands at any moment. "No merchant can be easy in mind and fair to his business creditors or bank, or even to the business pub- lic, who cannot tell whether or not his business enterprise is making a profit," says the credit men's booklet. "The merchant should know, and not guess, that the price at which he sells an article, or the price at which he con- tracts to do work, will cover: the exact cost of the ar- ticle, or the exact cost of the material and labor used in the contract; the proportionate cost of conducting the business which the article or contract should bear; with a little for his living; iand something besides. This can only be done by keeping exact records." Better Bookkeeping Procedure 29 The booklet closes by saying: "If, after reading this story of 'A Business Enterprise/ the reader feels that he is not yet qualified to undertake the keeping of a simple system of books, then it is suggested that he get in touch with one of the largest concerns from whom he buys goods, or his bank, and ask for help of their business service manager or credit man. "In conclusion, when you have laid a foundation by beginning the system outlined, faithfully recording your transactions from month to month, your next step will be a natural one, and will help to preserve your invest- ments and your profits." Salesmen The successful salesman must not only Should Know sell the goods but he is often required to Accounting suggest improvements in methods of merchandising, in the advertising, and in the accounting system used in his customer's business, and in his own organization. Therefore, he should be familiar with the fundamental principles of all phases of business. CHAPTER V A Short Cut in Figuring Profit on the Selling Price When a Sales- In emphasizing the rapid turnover for man is Asked to advertised goods, at the time of making Figure Profits the sale, salesmen are often called on to give exact figures of profit on variable vshipments. Instead of an involved series of calculation, simply divide the difference betw^een cost and selling price by the selling price and the result v^ill give you the gross margin of profit on w^hich business can be ac- curately judged. Suppose a dealer tells you, the traveling salesman, that a competitor is giving him a 90% profit (assuming that this profit is based upon the buying price). Now, if you v^ish to shov\r him v^hat the correct profit is in this case, add 100% and 90% ; then 190% equals the selling price ; then divide .90 by 1.90 and you v^ill have the margin of profit figured on the selling price. Thus : .90 divided by 1.90 equals .4736 or 47.36%, the correct profit. Again, suppose he says the- competitor gives him 70% profit. Divide 70 by 170 and you get 41%, the correct ansvv^er. Similarly, if he says he is getting 60% profit, divide 60 by 160, etc. . Finally, suppose he comes at you like this : My stock pays me 80% profit ; it cost me $8.00 a dozen and I sell it for $14.40 a dozen or $1.20 each. He thinks in this instance, that he is making 80% profit. But you can ar- rive at what he is really making, as follows: Subtract 30 Figuring Profit on the Selling Price 3.1 the $8.00 from $14.40, which gives you $6.40 gross profit. Divide the $6.40 by $14.40 which gives you approxi- mately .445. He makes 441/2% profit instead of 80% profit, as he supposes. This problem has caused much discussion. The trouble comes from the fact that some accountants figure profit as a percentage of the cost and others as a per- centage of the selRng price. Thomas A. Fernley in a little pamphlet entitled "The Right Way to Figure Prof- its," discusses this subject from the standpoint of those who believe that profits should be calculated on the sell- ing price. There is only one text book we have seen which takes the other view, and that is Bookman's Arith- metic, published by the American Book Company. We give solutions of this problem based on each of three different theories. 1. Article costs $1.00. Expense of handling, 22%; profit required, 10% ; 22%+10%=32%. 32% of $1.00 =32c. $1.00+32c:=:r$1.32, selling price. 2. Article costs $1.00. Expense of handling, 22%. 22% of $1.00=22c=expense of handling. $1.004-22c =$1.22==gross cost. 10% of $1.22==12.2c=10% profit on gross cost. $1.22-|-12.2c=$1.342 or selling price. Practically the goods would be marked $1.35 by this plan. 3. Article costs $1.00. Expense of handling, 22% of retail price; required profit 10% of retail price. 22%-]-10%=32%=per cent of retail price required to cover expense of handling and profit. 100%-32%^= 68%=per cent of retail price represented by cost. That is $1.00=68% of selling price. Therefore $1.00-4-.68 32 Science and Art of Selling will be the proper selling price. $1.00-f-.68=$1.47, the price at which the goods should be marked. Proof of third solution. Marked price $1.47. 10% of $1.47=:14.7c profit. 22% of $1.47==:32.3c expense of handling. 14.7c+32.3cr=47c. $1 .47— .47=$1 .00, The following tables, reprinted by permission from "Price Maintenance" by Thomas A. Fernley, are given TABLE FOR FINDING THE SELLING PRICE OF ANY ARTICLE COST TO DO BUSINESS 1 NET PER CENT PROFIT DESIRED j I 2 3 4 5 6 7 8|.. 10 Jl »^, 13 14 15 20 25 30 35 40 50 15% 84 83 82 81 80 79 78 77 76 75 74 73 72 71 70 65 60 55 50 45 35 .16% 83 82 81 80 79 78 77 76 75 74 73 72 71 70 69 64 59 54 49 44 34 17% 82 81 CD 79 7S 77 76 73 74 73 72 71 70 6> 63 63 53 53 48 43 33 18% 81 80 79 73 77 76 75 74 73 72 71 70 69 68 67 62 57 52 47 42 32 19% 80 79 73 77 76 75 74 73 72 71 70 69 63 67 66 61 56 51 46 41 31 20% 79 78 77 70 75 74 73 72 ?1 70 69 68 67 66 65 60 55 50 45 40 30 21% '73 77 76 75 74 73 72 71 70 69 63 67 66 65 64 59 54 49 44 39 29 22% 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 58 53 48 4i 38 2S 23% 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 57 52 47 42 37 r 24% 73 74 7,5 72 71 70 69 63 67 C5 65 64 63 62 61 56 51 46 41 36 26 25% 74 73 72 71 70 C9 68 1 riJ 66 65 64 63 62 61 60 55 50 45 •to 35 25 RULE — Divide the cost (invoice price with freight added) by the figure in the column of "net rate per cent profit desired" on the line with per cent it costs you to do business. EXAMPLE If a wagon costs $60 . 00 Freight 1 . 20 $61.20 You desire to make a net prof t of 5 per cent. It costs you to do business 19 per cent. Take the figures in column 5 on line with 19 which is 76. 76161 . 2000l$80 . 52— the — 60 8 selling price 400 380 200 152 The percentage of cost of doing business and profit are figured on selling price. COURTESY OF COST EDUCATIONAL ASSOClATlOil Figuring Profit ox the Selling Price % 10% n% .n 13% 14% 15% 16% 17% 18% 1'?% 20% 21% 22% 23% 24% 25% 25 10 9 8 7 6 5 4 3 2 1 00 iim 2Lots 3 Lou 4LBt 5Lxs 331 15 14 13 12 11 10- 9 8 7 6 5 4 3 1 00 40 18 J 17 i 16} 155 145 135 125 n*, 10 i 95 85 75 65 45 Si 50 23 i 22 i 211 201 !91 181 171 161 151 141 131 121 111 101 91 Si 60 275 26 S 251 241 231 221 211 2a 1 1)1 181 171 161 151 141 131 121 75 325 31 J 305 295 285 275 265 25J 245 235 225 215 205 195 185 175 100 40 39 38 37 36 35 M 31 23 21 30 29 2S 27 26 25 If your cost of doing business figure on sales is represented by one of the percentages in the top row and you mark your goods at one of the percentages in the row to the extreme left in addition to the delivered cost, your net percentage of profit is represented by the figure at the junction of the two columns. Explanation — If your cost of doing business is 15 per cent of your gross sales and you mark a line at 25 per cent above cost, your net profit is 5 per cent on sales — as shown in the diagram. If your cost of doing business is 18 per cent and you mark a line at 60 per cent above cost, your net profit is 19^/^ per cent on sales. as a quick and convenient method of figuring the correct selling price or of determining just what the actual profits are when the selling price has been calculated in the old way. 34 Science and Art of Selling SUMMARY The time of guessing in business is over. The shrewd business man recognizes the fact that guessing leads to bankruptcy. Lax methods lead toward failure. They produce dis- satisfaction on the part of the customer. Careful handling of financial matters is one of the pre- requisites of a prosperous merchant. QUESTIONS AND EXERCISES 1. Give the requirements of a manager for a grocery store as you would wish them. 2. What would be your requirements of a bookkeeper for your store ? 3. Why should all salesmen know something of ac- counting ? 4. Contrast the various ways of figuring profit. 5. Which method is most logical? Why? X a H U S K w u H ■ ^^ X B 3 o < g K w 2 O H u < d) g u 2 U )^ § (d H ^ < H (3 2 s > ^ M ^ CHART VIII. PSYCHOLOGY OF BUSINESS 36 CHAPTER VI The Psychology of Business He Was Rip Van Winkle expressed much surprise Surprised when he learned that he had been asleep for many years. Ninety-nine people out of a hundred might be equally surprised to learn that early in childhood they began using the principles of salesman- ship and psycholog}^, and employing appeals to instinct, habit and emotion in their behalf. Every Salesman Ask a group of salesmen if they are Should Study psychologists ; they will probably Psychology tell you no, and they would doubtless be right. Very few people have a clear idea of what psychology is. Yet, in a certain way, every person is somewhat of a psychologist, even though he does not realize it. He has picked up a smattering of psychology but knows none of the laws or how to apply them. What Chance We are all athletes in some manner or Have You degree. No one can climb a flight of fo Win? stairs or get over a fence without being more or less an athlete. Nevertheless, he who would attain success as an athlete must have his muscular action under control. What chance would you have of winning a fence jumping contest if you were to compete with a trained athlete? Then do 3^ou want to go into business and compete with trained scientific busi- 37 38 Science and Art of Selling ness psychologists? That is what you will be obliged to do when you deal with expert salesmen. Scientific Successful salesmanship is based upon Salesmanship an understanding of the laws of the mind. The psychology of salesmanship is the psychology of leadership. Knowing how to influ- ence people is the chief element of salesmanship. This idea is just beginning to be grasped by the higher educa- tional world. For the first time in the history of this country young students are being taught how to influence human nature. Every student should take a course in salesmanship, not merely to learn how to sell but to learn how to lead. The The average high school or college gradu- Untrained ate who goes out into life without any Salesman knowledge of salesmanship is temporarily at the mercy of his environment. The un- trained salesman who tries to sell either behind the counter or on the road Is very much like an untrained swimmer who suddenly finds himself in water above his head. He doesn't know what to do and what he does do in that emergency is merely the result of accident, and is more likely to end in failure than in success. Every Person Every individual, as well as every busi- Has Something ness concern, has something to sell; to Sell either ideas, services or products. A stenographer or bookkeeper must sell his or her services to the business man ; the doctor must sell his services ; the lawyer must sell his client's evidence The Psychology of Business 39 to the jury; the minister must sell his message and his program to his congregation; the statesman must sell his potential ability to the people before he can be elected to office. Political A prominent illustration of faulty polit- Salesmanship ical salesmanship was seen in the presi- dential campaign of 1916, when Judge Charles S. Hughes was nominated for the presidency. The republicans of the country had a right to expect that he would be elected, because there had been a mill- ion more republicans in this country than democrats. Judge Hughes had the confidence of the entire republi- can party, and that seemed to insure his election. Similar In that presidential campaign there were Qualifications many marks of similarity between Judge of Candidates Hughes and his opponent, President Wilson. Both men were the sons of ministers ; both were college graduates, both were schol- ars, both had taught school, both had been governors of prominent states, while one had just resigned as Judge of the United States Supreme Court, and the other was President of the United States. Both men were highly distinguished candidates for the Presidency. Inadequate If when nominated, Judge Hughes had de- Sales clared that if victorious he would stand for Strategy one hundred per cent Americanism, and give this country the best administration of which he was capable, he undoubtedly would have been elected without ever making a speech. Instead of doing that, he entered into a hot campaign attacking President FUNDAMENTAL LAWS OF HUMAN NATURE What a man does not understand he opposes You cannot antagonize and influence at the same time God implanted in every heart a desire to be somebody A natural impulse, without reasoning, toward actions essential to existence preservation development Everybody wants maximum receipts for minimum cost CHART IX. FUNDAMENTAL LAWS OF HUMAN NATURE 40 The Psychology of Business 41 Wilson's administration, and every speech he made lost him votes. Fundamental There was a fundamental reason back Lav^^of of Judge Hughes' defeat. He broke Human Nature one of the basic laws of human na- ture, and of salesmanship, in his cam- paign. That law is : You cannot antagonize and influ- ence people at the same time. A similar analysis of the presidential campaign of 1920 reveals the fact that the result was largely a reaction due to a violation of this law. A Basic The salesman who devotes a large part Principle in of his selling talk to an attack upon his Salesmanship competitor's goods rather than to a dis- cussion of his own proposition will not succeed. No salesman who continued to disregard the basic laws of human nature ever won or held many customers. Natural laws operate continually, whether you recognize the fact or not, and you must function with them if you are going to win. H you ignore or disregard human nature you are doomed to failure in business. The untrained salesman does not know this and he is defeated without ever learning the cause of his defeat. Here is where the so-called born salesman is at a disadvantage. The Cost of Judge Hughes devoted his presidential Faulty campaign in 1916 to a condemnation of Salesmanship President Wilson and his administration policies, and said very little about the program he would carry out if elected. That wrong 42 Science and Art of Selling sales strategy cost him the election to the Presidency of the United States in the most momentous era in the world's history. That position carried with it a salary of $75,000.00 a year, besides greater power and prestige then than that possessed by any other living ruler. He lost it all because of poor salesmanship, due to a viola- tion of one of the basic laws of human nature. Let it be clearly understood here that we are discussing sales- manship and not statesmanship. We are studying this incident to learn how people react to ideas and to dis- cern the fundamental principle underlying the cause of such reaction. Another Early in the summer of 1918 President Basic Wilson made the statement that "Politics Principle is adjourned." The public was very much pleased and hoped that politics would not be mentioned again until the war was over. Then late in October of the same year, just before the November Congressional election, President Wilson urged the vot- ers to return to him a Democratic Congress. Immedi- ately a wave of antagonism swept over the Republicans of the United States. They remembered his statement of a few months before: ^'Politics Is adjourned," and now they looked upon his appeal as a slight reflection upon their loyalty to the country during the great war, although President Wilson undoubtedly did not intend it as such. This was probably the most serious psycho- logical blunder that President Wilson made during his two terms as Chief Executive of the United States. It was the poorest kind of salesmanship, and yet President Wilson had proved time and again during the great war The Psychology of Business 43 that he was an exceedingly clever psychologist. That pre-election demand hurt his own prestige, weakened the influence of the Democratic party, and aroused the resentment of the Republican party. Result of the When President Wilson asked the Violation of a public to decide in his favor, he very Basic Law of well knew that there were more Re- Human Nature publicans than Democrats in this country. He should have realized that this action, following his earlier statement about politics being adjourned, would stir up antagonism. If he had not asked for a Democratic Congress, and a Re- publican Congress had been chosen it would in no way have affected his prestige, for accofding to his earlier statement, he wanted a patriotic Congress and was not interested In the party to which the members of Congress belonged. But when he asked for a decision contrary to his original declaration: "Politics is adjourned," the people responded adversely, and that defeat seriously impaired his Influence at home and abroad. Eminent authorities stated that the Allies were ready to hand over the moral leadership of the world to President Wilson and the only reason they did not do so was because his own people voted against him — and he invited their re- pudiation. That unfortunate error was the beginning of the intense Republican antagonism against him in the Senate, which finally caused so much trouble over the League of Nations Peace Treaty, and the settlement of other war Issues. And this trouble, turmoil and delay in our Congress caused anxiety, grief and financial loss to most of the leading nations of the world. 41: Science and Art of Selling The Basic President Wilson in this poHtical mistake Principle broke another fundamental law of sales- Violated manship. That law is : If a salesman asks a prospective customer to make a decision before* he has succeeded in selling him the proposition or created a desire for it, the prospect will give a decision but it will generally be against the salesman. Secret of We have shown that the more important the Success position a man holds, the more important it is that he should know the psychology of sales- manship. The ability to influence people favorably is one of the great secrets of leadership and success. We have seen how two .prominent men came to grief through the use of poor selling methods. Let us profit by such mistakes. Faulty Recently I walked up the aisle of a big Retail department store in New York. I hap- Salesmanship pened to see a large assortment of socks marked 59 cents and I stopped to ex- amine them. No sooner had I done so than a clerk leaned over and asked: "Something for you?" He forced me to make a decision before giving me any reason for buying the socks. I gave him the decision. The decision was "No," and I walked on. Had the clerk waited until I had examined the socks, and had he sat- isfied me that they were what I wanted, my answer would probably have been "Yes," and he would have earned his commission on that sale. - The Psychology of Business 45 Remember No expert salesman will ask a prospective This customer to make a purchase unless he is Principle satisfied in his own mind that he has al- ready convinced and succeeded in selling that customer. If he does ask for a decision before the customer is sold, that is, before the customer has in his ow^n mind gone through the mental steps of interest, conviction, desire and resolve to possess the article, the prospect will give the salesman a decision, but that de- cision will almost always be negative. The Instinct One fundamental instinct of human na- of Self- ture that is possibly more important Preservation than any other is that of self preserva- tion. The salesman who understands this feeling and knows how to take advantage of it has a tremendous advantage over the man who knows little or nothing about it. Politics The late Mark Hanna, a noted Ohio pol- Based Upon itician, knew that the impulse to fight for Psychology one's life and the desire to get something for nothing, constitute the basis of two of the strongest appeals to the human heart. So, he made the "Full Dinner Pail" the ]\IcKinley campaign slogan in 1896. The voter did not stop to inquire how it would be filled. The idea appealed to his appetite and he voted for it. Mr. Hanna not only held up the full dinner pail to induce men to vote for it, but he drove them to it by appealing to the instinct of fear, which is, of course, closely connected with the instinct of self preservation. 4G Science and Art of Selling Fear as a Fear is a predominant negative human in- Motive stinct. Mr. Hanna understood this and he was sure that the working man would not be Hkely to vote to empty his dinner pail, even by so much as one slice of bread, if he believed that voting against McKinley would do it. There was little reason in this appeal, but Hanna was aware that he did not need any. He realized that self preservation is the first law of life, and that the voters were dominated by that feeling. Theodore Roosevelt capitalized that fundamental in- stinct when he declared against the abuses of the capital- istic class in the United States. He knew he would im- mediately gain the applause of the masses by appealing to their demand for self preservation, and the universal desire for fair play. The "Square Deal" preachment was his slogan. Mental Learn a big fundamental lesson from Manipulation this principle and these illustrations from prominent men. Can't you make an effective appeal to some vital human instinct in every talk you make,' in every letter you send out and in every circular and advertisement you write? No man will ever learn all there Is to be known about salesmanship until he is able to play upon the key board of human instincts with as much power and brilliancy as Pader- ewski, when he entices enchanting music from the ivory keys of the piano. No matter how brainy a man may be or how well educated, he will be a failure as a leader of men unless he thoroughly understands the funda- The Psychology of Business 47 mental human instincts and knows how to so influence them as to induce action in his behalf. Self- The Almighty implanted in your heart and in Interest mine the desire to be somebody, to do some- thing and to have something. Out of that comes what we might call the law of self interest, another fundamental instinct of human nature. Put Prospect's The salesman who understands the law Advantage of self interest analyzes his proposition First and presents it entirely from the stand- point of the advantages to the buyer. He thinks and talks of nothing but the profits his prospect will make. He thinks in terms of you and not /.. QUESTIONS AND EXERCISES 1. Define Psycholog}^ What is meant by Psychology of Business? 2. What are the requirements of training for a doctor? A lawyer? 3. Contrast the possibilities for success of the trained and untrained salesman. 4. Just how can salesmanship be applied to politics ? 5. What do vou understand bv human nature? "Instinct is a natural spontaneous impulse or propensity, in the lower animals or in man, moving them, without reasoning, toward actions essential to their existence, preservation, and development; as the instinct of self-preservation." — Standard Dictionary. Professor James, of Harvard University, names the follow- ing as the common human instincts: Imitation Rivalry Anger Resentment Sympathy Hunting Fear Acquisitiveness Constructiveness Play Curiosity Sociability and Shy^iess Secretiveness Cleanliness Modesty and Shame Love Jealousy Parental Love Professor Angell, President of Yale University, names the following as the common human instincts: Imitation Rivalry Anger Sympathy Feaf Acquisitiveness Constructiveness Curiosity Sociability Shyness Secretiveness Modesty Affection Jealousy Sexual Love Plan Other authorities include the following as common human instincts: Appetite, envy, desire for approbation, duty, teasing, fighting, agriculture, artistic interest, respect forothers, co-operation with others, loyalty to group interest, subordination to superiors, morality. CHART Xo HUMAN INSTINCTS 43 CHAPTER VII Human Instincts Definition In order that we may know what human of Instinct nature is Hke and how it works, we must analyze it and study it. The following human instincts should be very carefully studied. You will have to deal with them all your life. And you must know how to do so successfully in order to win success yourself. A twenty-five thousand dollar a year adver- tising man is a master of these instincts and a wizard in handling men. "The instinct of animals is now held by many philosophers to be of the same nature as the in- tellect of man, but inferior and limited ; yet the apparent difference is very great. 'An instinct is a propensity prior to experience and independent of instruction.*— Parley, Natural Philosophy. In this sense we speak of human instincts, thus denoting tendencies independent of reasoning or instruction." — Fernald. Another 'Tnstinct is usually defined as the faculty Definition of acting in such a way as to produce cer- tain ends, without foresight of the ends, and without previous education in the performance." — Prof. James. How Instinct The late Professor James gives this Reacts Upon very interesting explanation of the Man and Animals reaction of instincts in men and in animals. His entire discussion of instinct in Chapter 24, Psychology, Volume 2, from 49 50 Science and Art of Sklltng which the following is quoted, is worthy of your study and thought : "Every instinct is an impulse. Whether we shall call such impulses as blushing, sneezing, cough- ing, smiling, dodging, or keeping time to music, instincts or not, is a mere matter of terminology. The process is the same throughout. Three *To crouch from cold is a sensation — • Fundamental impulse; to turn and follow, if we see Impulses people running one way, is a perception — impulse; to cast about for cover, if it begins to blow and rain, is an imagination — impulse. A complex instinctive action may involve successively the awakening of impulses of all three classes. Why Do Men ''Why do men- always lie down, when Do These they can, on soft beds rather than on Things? hard floors? Why do they sit around the stove on a cold day? Why, in a room, do they place themselves, ninety-nine times out of a hundred, with their faces towards its middle rather than to the wall? Why do they prefer saddle of mutton and coffee to hard-tack and ditch-water? Why does the maiden interest the youth so that everything about her seems more important and significant than anything else in the world? Nothing more can be said than that these are human ways, and that every creature likes its own ways, and takes to following them as a matter of course. Science may come and consider these ways, and find that most of them are useful. But it is not for the sake of their utility that they are followed, but because at the moment of following them we feel that that is the only Human Instincts 51 appropriate and natural thing to do. Not one man in a hundred, when taking his dinner, ever thinks of utility. He eats because the food tastes good and makes him want more. If you ask him why he should want to eat more of what tastes good, instead of revering you as a philosopher he will probably laugh at you for a fool. The connection between the savory sensation and the act it awakens is for him absolute and of the most per- fect sort, needing no proof but its own evidence. It takes, in short, what Berkeley calls a mind debauched by learning to carry the process of making the natural seem strange, so far as to ask for the why of any instinctive What the Salesman It is not so important for the sales- Should Know man to know why a man does cer- About Instincts tain instinctive acts but it is all important for the salesman and the merchandiser to know what are the instinctive wants and desires of man, for it is the salesman's business to sup- ply those wants. Don't you see how the grocery and food salesman can apply this knowledge in appealing to the appetizing Instincts of people? Continuing his discussion of Instinct, Professor James says : "Man has a far greater variety of impulses than any lower animal ; and any one of these impulses, taken in Itself, is as 'blind' as the lowest instinct can be ; bvtt, owing to man's memory, power of reflection, and power of Inference, they come each one to be felt by him, after he has once yielded to them and experienced their results, in connection with a foresight of those results. In this Science and Art of Selling condition an impulse acted out may be said to be obeyed, in part at least, for the sake of its results. Instinctive **It is plain, that no matter how well Action Modified endowed an animal may originally be by Experience in the way of instincts, his resultant actions will be much modified if the instincts combine with experience; if in addition to im- pulses he have memories, associations, inferences, and expectations, on any considerable scale." Man's ''With the child, life is all play and fairy Changing tales and learning the external properties Interests of 'things ;' with the youth, it is bodily ex- ercises of ^ more systematic sort, novels of the real world, boon-fellowship and song, friendship and love, nature, travel and adventure, science and philoso- phy ; with the man, ambition and policy, acquisitiveness, responsibilty to others, and the selfish zest of the battle of life In all pedagogy the great thing is to strike the iron while hot, and to seize the wave of the pupil's interest in each successive subject before its ebb has come, so that knowledge may be obtained and a habit of skill acquired — a headway of interest, in short, secured, on which afterward the individual may float. "There is a happy moment for fixing skill in drawing, for making boys collectors in natural history, and pres- ently dissectors and botanists ; a time for initiating them into the harmonies of mechanics and the wonders of physical and chemical law. Later, introspective psych- ology and the metaphysical and religious mysteries take Human Instincts 53 their turn, and, last of all, the drama of human affairs and worldly wisdom in the widest sense of tlie term. In each of us a saturation-point is soon reached in all these things; the impetus of our purely intellectual zeal ex- pires, and unless the topic be one associated with some urgent personal need that keeps our wits constantly whetted about it, we settle into an equilibrium, and live on what we learned when our interest was fresh and instinctive, without adding much to the store. ''Outside of their own business, the ideas gained by men before they are tw^enty-five are practically the only ideas they shall have in their lives. They do not get much that is new. Disinterested curiosity is past, the mental grooves and channels set, the power of assimila- tion gone. If by chance we ever do learn anything about some entirely new topic we are afflicted with a strange sense of insecurity, and we fear to advance a resolute opinion. But, with the things learned in the plastic days of instinctive curiosity we never entirely lose our sense of being at home. There remains a kinship, a sentiment of intimate acquaintance, which, even when we know we have failed to keep abreast of the subject, flatters us with a sense of power over it, and makes us feel not altogether out of the pale. Whatever individual except- ions might be cited to this are of the sort that 'prove the rule.' " Suppose you were going to sell a proposition adapted to children of five, ten and fifteen years of age. Sup- pose you wanted to interest young men and women un- der twenty-five. Do you recognize the difference in in- stincts between children and young people ? Would you 64 Science and Art of Selling know how to make your appeal ? With this idea in mind, go back and study James' quotation over again very carefully and see how much more you will get out of it. Prominent The following list of human instincts and Human their psychological reaction on men is taken Instincts from a prominent work on psychology by Professor James B. Angell, formerly head of the Department of Psychology, Chicago University. The Important human instincts he names are: "Fear, anger, shyness, curiosity, affection, sexual love, jealousy and envy, rivalry, sociability, sympathy, modesty, plan, imitation, constructiveness, secretiveness, and acquisi' tiveneFs." Professor Angell explains them as follows : "Curiosity Is simply another name for interest. Curi- osity is the racial instinct to which our sedate citizen is yielding. "Many persons feel an ineradicable impulse to conceal their plans, their actions and their character behind a screen of noncommittal silence and reserve. But this is temperamental and may be felt in the absence of all ex- plicit justification. Acquisitiveness is selfishness ; the impulse to 'get and hold.' Here is where the self inter- est appeal Is effective. "Rivalry is closely allied with emulation, and runs to excess in anger, hate, jealousy and envy. Its stimulus is found in the successful achievement of any one coming within our social circle, by virtue of which we are likely to be relegated to an inferior position." The appeal to the spirit of rivalry is always effective in a contest. Men will work twice as hard in a contest as they will when Human Instincts there is no spirit of rivalry. For this reason sales or- ganizations offer a great many prizes. "Envy is generally applied to our covetousness of the prosperity or possession of others. This covetousness is often accompanied as in jealousy, by more or less malig- nity. Jealousy we commonly apply to a similar feeling toward persons who are our supposed rivals, whether actually successful or simply feared. Its characteristic expressions are similar to those of anger and hatred, but commonly occur in milder form. "Adult constructiveness is exercised under the stress of fear, pride, or similar emotions.'* The instinct of pride has been strong enough to keep thousands of men fighting to the limit of their endurance. They simply could not endure the disgrace of failure. Applied The salesman who attempts to awaken in- Psychology terest and arouse emotions in his prospect- ive customers will be greatly assisted by understanding the origin, nature and significance of these human instincts, and the part they play in influencing the mental processes and actions of men. Make a care- ful study of all the fundamental impulses as you see them in yourself and your fellow-men about you every day. Study sales letters and advertisements and learn how the great advertising leaders profit by a knowledge of human instincts. Observe, analyze, study, and it will profit you greatly. Science and Art of Selling QUESTIONS AND EXERCISES 1. Define Instinct. Impulse. 2. How does knowledge of instinct aid the salesman? 3. How does experience offset instinct? 4. Make a list of prominent human instincts. 5. How may the emphasis of natural instincts in childhood be of benefit to the mature individual? 6. Name some games of childhood that are strong in- dications of instinct. [ EMOTIONS I Emotional expressions and instinctive reactions shade into each other Emotion and Instinct are both Psycho-physical Processes Emotional Appeals Excite Action Thought + Feeling =» Action CHART XI. EMOTIONS 58 CHAPTER VIII The Emotions Definitions The good salesman always gives his evi- of Emotions dence first — he proves the value of his proposition. Then he creates desire by appealing to the emotions. The chapter on desire in the mental law of sale will show you how this is done. "An emotion is any strong movement or perturbation of the conscious mind; an act or state of excited feelings; as emotions of fear. The same mental condition may be spoken of as .... or desire when regarded as involving craving and tendency to excite the will." Standard Diet. Another "Instinctive reactions and emotional ex- Definition pressions shade imperceptibly into each other. Every object that excites an instinct excites an emotion as well. Emotions, however, fall short of instincts, in that the emotional reaction usually terminates in the subject's own body whilst the instinct- ive reaction is apt to go further and enter into practical relations with the exciting body. In speaking of the in- stincts it has been impossible to keep them separate from the emotional excitements which go with them." No Limit to "There is no limit to the number of pos- Number of sible emotions which may exist, and the Emotions emotions of different individuals may vary indefinitely .... If one should seek to name each particular one of them of which the human 59 60 Science and Art of Sellin(] heart is the seat, it is plain that the limit to their number woiild lie in the introspective vocabulary of the seeker." Prof. James. Emotional In addition to a knowledge of the fun- Appeals Excite damental instincts of human nature Action the successful salesman must be famil- iar with the emotional appeals that excite action. This is a vital subject in itself and will be more fully explained in connection with the Mental Law of Sale, in a later chapter in this book. The Impulse Professor Angell says : 'Tmpulse as a to Act mental affair may be defined broadly as the consciousness of tendency to move- ment. The disposition to movement is instigated by some stimulus." From that the principle for the salesman to remember is this: Thought plus feeling, or emotion, equals action. That is to say, to get action on the part of his prospect the salesman must not only appeal to the intellect, but at the psychological moment — the zero minute — he must appeal to some motive in order to get action — the signed order. See page KO, Personal Efficiency. He must also use the language of appeal, the language that tends to incite the human mind to action. There is a vital difference between the language of litera- ture and the language of salesmanship. The language of literature is used for the purpose of description, enter- tainment or instruction, while the language of salesman- ship is the language of action. Tup: Emotions 01 QUESTIONS AND EXERCISES 1. Define emotion. 2. Contrast emotion and instinct. 3. What can you say as to the number of emotions that we have? 4. How do actors and orators make use of this fac- tor? 5. Does^emotion always excite action? FIVE SENSES j/^ NO IMPRESSION X. <^CAN ENTER THE MIND EXCEPT ^ N. THROUGH THE SENSES y^ APPEAL THROUGH AS MANY SENSES AS POSSIBLE TASTE SMELL MIND CHART XII. FIVE SENSES 6i CHAPTER IX , The Five Senses The Five The five senses ; seeing, hearing, smelling, Senses taste and touch, must be studied in order to increase your efficiency and earning power as a salesman. A Salesman's Your method as a salesman will be to Most Vital convey thought, arouse feeling and pro- Work voke action. The only possible way you can reach and influence your prospect is through the senses. There is no secret "back door" by which you may invade and control a human personality. Importance The intellect, memory and imagination of the are limited to the experience and sensa- Five Senses tions that have been acquired in the way indicated. Thoughts and ideas evolved by the mind often appear entirely new; but at best they are the product of im- pressions, facts and ideas, taken in by way of the senses, which have beqn created by the mysterious psychic power inherent in the brain. Cultivate You should realize how imperative it is Your for you to learn all about the five royal Five Senses highways to the intellect, both in your- self and in others. 63 64 Science and Art of Selling THE EYE APPEAL Appeal to An eminent authority states that there are the Eye twenty-three nerves leading from tlie eye to the brain to every nerve 'leading from the ear to the brain. The greatest sales organization in America never makes an appeal to the ear through speech, without accompanying it with a similar appeal to the eye, by picturing the idea. In fact, whenever possible they build their salesmanship around an appeal to the eye, and use the voice for making suggestions and e>;- planations. The Window The eye has aptly been called "The win- of the dow of the soul." It is a camera of the Soul highest grade. It records more impres- sions in one day than all the photog- raphers in the United States can take in years, and it does its work more accurately. All these pictures are images of objects, and are the stuff out of which ideas are made. Emerson says we get nine-tenths of our educa- tion through the eye. (See Personal Efficiency, pages 198-200.) Study Your The eye must be judged by its size, form, Customer's color and clearness. The distance the Eyes eyes are set apart and their expression must be noted. Be sure that your pros- pect actually sees the object you are showing him. Men oiten look directly at a thing but because the brain is so engrossed with other thoughts it makes no impression on the mind. Therefore, test your customer's attention TiTK Five Senses 05 frequently by asking questions that you know will indi- cate whether or not he is grasping the points you are making and your questions should be so stated that the customer's answers will give you an idea of the impres- sion that you have been making on his brain. What the Eye "The large eye is telescopic and sees Tells You About big things. It has sweep of vision. Character The small eye is microscopic and sees details. It is best at short range, and most competent in getting minute observational values. Eyes set apart, either large or small, indicate perception of form and structure, and usually go with breadth of mind. Eyes set close together, hugging up to the nose show a lack of perception of form, structure and broad- mindedness. The grey eye stands for coolness, critical judgment and intelligence. The blue eye denotes emo- tion. The dark or black eye indicates passion and power. The dark-brown eye predicates love and affection. The light brown is the eye of friendliness and sometimes of temper. Yellow colored eyes go with lust for blood and are found in tigers and vicious people. The hazel eye craves and gives sympathy. The yellow or green eye on the other hand is hypnotic. A clear eye denotes health. A fishy eye denotes moral disease. The open eye indi- cates frankness. The almost closed eye goes with cun- ning. Full eyes, protruding with baggy appearance un- derneath, denote verbal memory, talking power and ora- tory. So the revelations of the eye bespeak most of the emotional states." — The Science of Judging Men, Mor- rell. 66 Science and Art of Selling Please the Eye In selling merchandise, a strong, attract- ive appeal should be made to the eye. The wares displayed must be clean and well arranged for display. Study the displays in windows of stores on the principal shopping streets in any city and note the infinite care that is given to this feature of merchandis- ing. Such concerns scU thousands of dollars' worth of merchandise through the appeal made by their mute window salesmen. See Personal Emciency, pages 199, 25 and 169. THE EAR APPEAL Develop a If you expect maximum pay as a salesman Pleasing you must train your voice. These are the Voice important qualities to be developed: A rich, refined, deep and well modulated tone ; and a full, distinct articulation. A course of training in singing from an expert vocalist or from a teacher of oratory is a very profitable investment for any person who wishes to be a successful salesman. An instructor in expression will drill you in the principles of correct breathing, the management of your speaking voice, and the right use of tones. A course in public speaking will aid you in presenting your, ideas eiTectively. Many a well equipped salesman fails or makes little progress be- cause he has never learned to talk with ease and fluency. Lame, hesitating, poverty-stricken speech is fatal. "The ability to talk well is to a man what cutting and polishing are to the rough diamond. The grinding does not add anything to the diamond. It merely reveals its wealth." Marden. See Personal Efficiency, page 202. The Five Senses 67 Language The salesman must study his language so that errors of grammar, slang or misused words will not creep in and offend the ear of his pros- pective customer. To be a good conversationalist, able to interest people, to rivet their attention, and to draw them to you naturally, is to be the possessor of a very great and valuable money-making power. It opens doors and often hearts. It helps you marvelously to get on in the world. Sound Appeal People do not like noisy machines. If to the Ear you are selling a typewriter, a vacuum cleaner, a sewing machine or a washing machine remember that any offensive sounds made by it are likely to hinder sales. The officers of The Stenotype Company spent more than $200,000.00 to make a few mechanical changes that would make the stenotype prac- tically noiseless. Automobile concerns are spending millions of dollars to eliminate a slight vibration in their engines. You must exercise your own sense of hearing, so that nothing important that is said to you will escape attention. If you are selling musical instruments the music produced is the element of supreme importance. Study the demonstration methods of the leading phono- graph companies. You can visit a phonograph demon-, stration room in nearly any town, and in every city in the United States. Conan Doyle's description of the baying of a hound in "The Hound of the Baskervilles,*' reveals a power of observation that Is almost supernat- ural. ns Science and Art of Relung THE APPEAL TO SENSE OF SMELL Importance of You may think that the sense of smell Sense of Smell has not much to do with salesmanship, to the Salesman but it has, especially in the sale of per- fumes, flowers, some drugs, groceries and food stuffs, high-grade toilet soaps and numerous other articles. Oliver Wendel Plolmes says: "Smell is not so important as the other senses, but it is the sense that most powerfully appeals to the memory." For a man's clothing or his breath to reek of some obnoxious odor, whether it is of tobacco or catarrh, or anything else objectionable, is very damaging to his personal in- fluence. See Personal Efficiency, page 202. SENSE OF TASTE Use of the If you are selling food products. Sense of Taste drinks, candies, or anything that is edible, use every opportunity you can to appeal through the sense of taste. When you have an opportunity to visit a Food Show do not pass it by. Go and study the various methods employed by concerns promoting new food stuffs or new drinks. When you are selling an article that enables you to enlist both taste and smell you should be quick to make the double appeal. SENSE OF TOUCH Touch The sense of touch is a very vital one to the expert salesman. You have probably wit- nessed the delicate sensitiveness possessed by some blind people. Those who can see do not depend so much upon their sense of touch as they do upon their sense of sight ; The Five Senses ('»*^ but nevertheless, if your article is such that the prospect- ive purchaser can feel, handle or operate it, by all means induce him to do so at the opportune time. By so doing you are sure to convey a definite message to his brain. An expert clothing salesman or shoe salesman always asks you to try on the article he is selling. The expert automobile salesman will first give you a ride in his car and then at the proper psychological moment he will suggest that you take the wheel. The specialty salesman will offer you the opportunity to try out his machine sometime during his demonstration. Definite methods incorporating the sense of touch will be explained in the chapters on Retail Salesmanship and also on Specialty Salesmanship. Character in By the way in which you shake hands Handshaking with a man, if he knows the funda- mental principles of character in handshaking, he is able to judge correctly of your character, trustworthiness and aptitudes. And it will be useless for you to unlearn your method and adopt another; for keen observation of other ways of yours will enable him to uncover your deception. This is one of the points given to salesmen by Dr. Charles F. Boger, director of personnel of the Electric Vacuum Cleaner Company, Cleveland, to enable them to judge their "pros- pects." We quote so much of his article on "Sizing Up Your Man," contributed to Electrical Merchandising (New York), as pertains to the various types of hand- 70 Science and Art of Selling shake and their respective significances as understood by Dr. Boger. He writes : Personal "The first natural step is to shake hands Mannerisms .... To the observant eye, it v^ill be seen that personal mannerisms in this regard may be divided into five classes, all others being a mod- ification or combination of any one of the five. We find the friendly, viselike grip; the listless or indifferent shake of the hand ; the half -imposed shake, shaking hands v^ith the finger-tips, and the closed fist v^hen the owner is engaged in conversation. They may be briefly set down in this order with the accompanying rules. Friendly Handshake genial companion. 'The man who, when handshaking, gives a full hand and presses his thumb against the back of your hand, is social, liberal and a con- "The man who does not press his thumb against the back of your hand when shaking hands is thrifty and economical to a fault; he is nig- gardly, almost miserly, and hence a poor associate in revelry and amusement. Notice, also, that the higher he holds his thumb the stingier he is. Economical The Five Senses 71 'The man who offers the tips of his fingers is sly, secretive and cun- ning. He may abound in polish and smooth- Secretive ness, but not in truthful- ness. You would do well not to trust him. Indifferent "A person who gives you his hand as Handshake though he was laying a piece of wood or brick in it is noted for his lack of force and indifference to society in general. Such a character lacks refinement, and, while he may be honest in intent, he may be easily led and imposed upon by others. The Closed "This may ofttimes be witnessed on the Fist stump and in public lectures. Upon investi- gation you will invariably find that the man who talks with his hands closed in the form of a fist is insincere and given to exaggeration. Modification ''Modification of these types, in a less or of Types greater degree, will bear relative propor- tion in these propensities which they sig- nify. You may ask, granting what you say is true, would it not be an easy matter to cultivate a straight-from-the- shoulder handshake, thereby frustrating your rule? That may be true, but the nature of the individual, de- spite all that culture and education can do, will not pre- vent the skillful observer from detecting the sham prac- ticed. SCTENCR AND AwT OF Sl^LLTNG Harmony of "Then, again, although a man may alter Features his handshake and affect an honest, soc- ial grasp of hand, it is beyond his power to transform his features, i. e., eyes, nose, lips and the general outline of his face and head. Therefore, since there exists a perfect harmony between the different parts of man, it would be useless for one to conceal his characteristics beneath the cloak of an assumed hand- shake, because they would only be detected through the remaining mediums." Selling Man possesses a total of five senses through Through which you can register an impression on his the Senses brain. If,- when you attempt to sell a pros- pective customer you approach his brain through all of his senses, you have made a 100% mental approach, haven't you? Then if you register an ap- proach through four of his senses you have made an 80% approach; if you register an approach through three of his senses you have made a 60% approach ; if you regis- ter an approach through two of his senses you have made a 40% approach, and if you register an approach through only one of his senses you have made only a 20% ap- proach. Illustration Now, if you are selling fruit, for example, of Appeals you have the opportunity to appeal to your to Senses prospective customer through all his five senses; sight, smell, taste, touch and hear- ing, a 100% efficient mental approach. If you are selling soap you can appeal through only four senses; sight, smell, touch and hearing, an 80% efficient approach. If The Five Senses you are selling a typewriter you can appeal through only three senses; sight, touch and hearing, a 60% efficient approach. If you are selling a book you can appeal through only two senses ; sight and hearing, a 40% effic- ient approach. If you are selling an idea, without illus- tration or model, you can appeal through only one sense ; hearing, a 20% efficient approach. Or if you are selling by letter or advertisement you can appeal through only one sense ; sight, a 20% efficient approach. Appeal Through Therefore, when you try to convey an as Many Senses idea to the brain through the ear as Possible alone, you are only 20% efficient in your avenue of approach ; the avenue through which you must impress the brain. That is one of the fundamental reasons why it is much more difficult to sell an idea than it is to sell an edible fruit, and why you should bring to your assistance appeals through as many senses as your proposition will permit. Teaching The average teacher of typewriting mahcs Through use of only two mind approaches at once; the Senses sight and touch, or hearing and touch, while instructing her students. Miss Emma B. Dearborn, of Columbia University, has demonstrated repeatedly in various sections of the United States that the efficiency of typewriting instruction can be increased more than 100% by approaching the students' minds through three senses at once ; sight, hearing and touch. It is hardly needful to say that in modern primary education, in which the blackboard is so much used, the 74 Science and Art of Sellini] children are taught their letters, etc., by all possible channels at once ; sight, hearing and movement. A Vital Lesson Your own experience in the field of for the selling will soon prove to you the im- Salesman portance of appealing to your pros- pective customer through as many senses at once as possible. It will pay you well to under- stand thoroughly the various methods of appealing to the brain through the five senses. Q UESTIONS AND EXERCISES 1. Name the five senses. 2. Why should a salesman study his customer's eyes? 3. What are some of the things that attract through the ear? Nose? 4. Demonstrate in class the various kinds of hand- shake, and tell how each is interpreted. 5. Give some personal experiences, whereby you have bought or sold through the use of one or more of the five senses. 6. Which sense do you consider the most important in appeaUng to the prospect? WHY SALESMANSHIP HAS DEVELOPED SO SLOWLY 4% OF THE MEN DO 95% of the Thinking, Planning and Managing in this Country 50% OF OUR POPULATION ARE WOMEN, CHILDRKN AND MEN WHO EARN NOTHING 46% of Our Population are Workers Who Earn Less Than $2,500 a Year U. S. Pop ulation 4% OF OUR POPULATION ARE THINKERS AND MANAGERS Only 1% Earn More Than $7,000 a Year 50% 1 46% 4%, Non-Producers SALESMANSHIP IS BASED UPON A KNOWLEDGE OF THE LAWS WHICH GOVERN THE ACTIONS AND FUNCTIONS OF THE MIND Business education is in a Formulative period. Business will be revolutionized when men master principles The mind is intangible, unseen, and therefore, by the majority supposedly unknowable Slow Development of Scientific Salesmanship CHART XIII. WHY SALESMANSHIP HAS DEVELOPED SO SLOWLY PART II Basic Principles of Salesmanship CHAPTER X Why Salesmanship Has Developed So Slowly Few Roger Babson, the world renowned statis- Thinkers tician, says that four per cent of the men of the United States do ninety-five p^r cent of the thinking, planning and managing for the country. Educational The business educational problem of the Problem country is to raise this four per cent to ten, fifteen or twenty per cent. But this will never be done until we find out what is wrong. In other words, we must learn why only four per cent are doing the thinking, planning and managing. After learn- ing what is wrong we can then work out a remedy. Little We are safe in saying that in round num- Business bers ninety-nine per cent of the grown-up Education men of this country left school without any knowledge of salesmanship and little knowl- edge of business, as far as business education is con- cerned. We are quite safe in saying that ninety-seven per cent or ninety-eight per cent of the mature men of this country left school with practically no business edu- cation whatsoever; ninety-six per cent left school without even graduating from high school, and the high school of a few years ago had no Commercial Department. 77 78 Science and Art of Selling Little Of course, the private commercial Preparation schools of the country have done some for Leadership splendid commercial educational work, but until recent years it has been de- voted entirely to preparing young men and women to be bookkeepers, stenographers and business clerks. That work alone did very little to equip these young people for positions of business leadership and management. Growth of The teaching of salesmanship has now be- Business come almost universal in the best private Education commercial schools of America. On the other hand, the high schools have not had even a commercial course until within recent years. Now there are four-year high school courses devoted entirely to business training, junior colleges carrying two years more of business Instruction, and universities giv- ing four years more of higher business education, in order to efficiently prepare young men and women to solve the problems of business. Fundamental Business education is only in its infancy Principles as yet. A few prominent executives know a great deal about production, manufacturing, managing, accounting, finance, distribu- tion, salesmanship, advertising and letter writing. But a very limited number of young business men understand the fundamental principles of business organization and management and they did not, as a rule, gain this knowl- edge during their school days. They obtained it after they left their regular school work, either through cor- respondence courses or in special night school classes. Why Salesmanship Has Developed so Slowly 79 Only a few people have really made a study of the fun- damental principles of business. Importance of Men who have mastered the fundamental Fundamental principles of any profession or phase of Principles life have established precedents and marked themselves as authorities in their particular field. Blackstone mastered the principles of law and made legal precedents that will last possibly for all time; Thomas Jefferson mastered the principles of democracy and is recognized as the world's greatest democrat ; Abraham Lincoln mastered the principles of human liberty and made precedents that have been fol- lowed all over the \vorld; Marshall Field mastered the principles of retail merchandising and that mastery has had an influence on the sale of goods in every store in America and many other countries. Unfortunately, busi- ness heretofore has been conducted on a basis of too much guess work and too little actual knowledge of the basic principles governing business. America a Salesmanship is a part of business and Commercial it is necessary to discuss some of the Nation elements of business, as well as sales- manship fundamentals, and show how they are related and coordinated. Inasmuch as America is a great commercial nation, business education should flourish, but such training in reality is decades behind engineering education. We have had engineering schools in this country for nearly a centur}^ Before that time if a >T)ung man w^anted to become an engineer he learned by experience, just as men have for ages been learning