.

[throwittoblythe]

Let's say you work for an architecture firm... I don't see a lot of architects taking potential clients to play golf or on hunting trips. That's why I asked if it was industry-specific.

I do business development for a construction company and frequently get free lunches from engineering companies and suppliers. The engineering companies are usually more conservative, just a lunch here at there at bar & grill. Sometimes a happy hour. Suppliers are the ones that can go all out. If you order enough product from them, they will spend big bucks on you. One of our estimators had a supplier fly him to Alaska for fly fishing. I used to know a guy that worked for a engineered products supplier who did this as his job. All he did was take big wigs and "important" people out on hunting/fishing trips, sports events, fancy dinners, etc. It sounds fun, but I think he did a lot of grovelling which I wouldn't tolerate.

Some companies put caps on it, though. A friend of mine at another big construction firm once had a supplier offer him an all expenses paid trip to see the Masters tourney in Augusta. Management squashed it, though. There was nothing illegal or unethical about it, just the managers feeling like it would create dissension among the ranks.

 

[Mr Janny]

I used to work in healthcare software sales. I miss it sometimes, especially having an expense account. Doctors expect you to do a certain amount of catering to get their business. I used to go to a lot of universities and wine and dine the residents in hopes of getting them to sign on as soon as they graduated. That was always a good time. Nice meals, lots of drinks, etc. You wanted to build a relationship, so when it came time to decide they choose you because you're their friend, or at least that's how I always looked at it. The bill at the end of the night could be enormous, but if even one of them would sign up, it would be worth it. And if you could get a group of them to go, you could make massive commission off of one evening.
There was a ton of stress in that line of work, though. I have big respect for those that can do it long term. It was a great thing to do in my late twenties and early thirties, but I couldn't handle it anymore.

 

[chadly82]

Giving freebies to win business. Companies will give you free leases on equipment if you purchase enough product. They just jack up the price enough to offset it.

Slap your logo on a car and let a customer drive it around. You deduct it as advertising.

I always love when my business partner and I are offered "free installation" on every call for our business. My answer is I just need the bottom line cause nothing is free.

 

[SpokaneCY]

Kinda depends on the industry you are in?

25 years ago in the pharma world it would be taking doctors to Hawaii or on your boat in the ocean fishin etc...and it was a race to see who could spend more and get the business..Today however, zip, nada, nothing....can’t do any of that now or you go to jail for a long time.

Nothing wrong with providing a business lunch now and then to get to know you clients... like I said it depends on your industry and what the rules are on those things..

I'm in natural gas business - the pipeline end of things - and it's still old-school. Golf trips, logo gear, customer meetings in cool locations, wine/dine... Later this week I'm off to San Diego for a customer meeting to golf Torre Pines a sea kayak trip. We'll do hunting trips and ski trips in Utah as well.

My end of the business is almost exclusively relationship driven. The goofy part is with interstate pipelines the rates are all tariff driven so all these entertainment costs are passed through to me in some way anyway (albeit the impact to my rates is insignificantly small).

 

[SCyclone]

I'm in the shoe business. I have one client, the University of Kansas.

 

[somecyguy]

I'm in the shoe business. I have one client, the University of Kansas.

University of Louisville is not happy to hear that.

 

[Sousaclone]

I do business development for a construction company and frequently get free lunches from engineering companies and suppliers. The engineering companies are usually more conservative, just a lunch here at there at bar & grill. Sometimes a happy hour. Suppliers are the ones that can go all out. If you order enough product from them, they will spend big bucks on you. One of our estimators had a supplier fly him to Alaska for fly fishing. I used to know a guy that worked for a engineered products supplier who did this as his job. All he did was take big wigs and "important" people out on hunting/fishing trips, sports events, fancy dinners, etc. It sounds fun, but I think he did a lot of grovelling which I wouldn't tolerate.

Some companies put caps on it, though. A friend of mine at another big construction firm once had a supplier offer him an all expenses paid trip to see the Masters tourney in Augusta. Management squashed it, though. There was nothing illegal or unethical about it, just the managers feeling like it would create dissension among the ranks.

This is what I see on the construction side as well. The suppliers typically are the ones handing out big stuff. Had a subcontractor invite a bunch of guys to go out on a fishing charter / tourney with him (he's fishing for a big contract for our demo work in about two years though).

I do think it is slowly changing culture from what it used to be. Even in construction, depending on whom your client is influences what you do. (i.e. most of the owners I work for are public agencies. Different mentality with them versus private clients).

 

[Cyclonepride]

Along with the the golf & lunch thing, we bought a couple season tickets to ISU basketball, and hand them out to customers (and some to employees).

 

[SCyclone]

We do some things to schmooze contractors. We have product and/or informational seminars, complete with food and beverages (beer included). We've taken busloads of contractors for a meal in DM and then to the Buccaneers hockey game. We've taken contractors to I-Cubs games.

In our business, they way to gain and maintain loyalty is to deliver quality material on time, and accurately. Price is far behind those other factors.

 

[HGoat1]

Been schmoozed before and I've been the schmoozer. I much prefer being schmoozed.

Its not quite like it used to be but pretty much nothing is out of bounds, depending on the customer. Fishing/hunting trips, Box tickets, Dinner/drinks at fancy steakhouses, etc. I've heard of guys going to strip clubs with clients before, but I've never personally been apart of it.

 

[cycloner29]

Heard where sales guy to a group to a recreational marijuana dispensary in Colorado. The rep even had the balls to turn it in on an expense report!!

Working for corporate company that they have talks about drugs etc and this guy goes ahead and say it is legal to do!! Guessing the lack of brain cells forgot to tell him that it may be legal in some states, but for the company he worked for and the fact they have random drug screens and workshops about handling drug and alcohol issues in the workplace, it was a big no-ni. Don't know whatever happened to the guy.

 

[DurangoCy]

Note to young professionals. None of us do this enough. Call a client once a month and take them to lunch, ask them when you can do better, what they like and why they're buying your services/products. I have a buddy who's excellent at this and is consistently top 1-5 out of 200 commercila lenders for a midsize bank coverning the MW and Mountain States.

My company doesn't have a huge budget, but we try to do things here and there (golf/dinner/beers). I do a few things here and there on my own. The goodwill you buy when you shell out your own credit card for your clients is incredible and it puts you in a place where the company can't fire you/has to pay you more to keep those clients.

 

[NickTheGreat]

I've been in the engineering world since 2005/2006. I think most all of our customers have always had a $50 cap on things like that. Like, we had a golf outing once and the people could barely come to that. But the days of Hawaiian trips and Elk Hunting Trips disappeared in the 90's.

I've heard stories of one company that build these executive apartment suites adjacent to their headquarters. I guess for out-of-town clients and management Full 70's shag carpet and all. You can imagine what sort of shenanigans went on there . . .

 

[BCClone]

I've been in the engineering world since 2005/2006. I think most all of our customers have always had a $50 cap on things like that. Like, we had a golf outing once and the people could barely come to that. But the days of Hawaiian trips and Elk Hunting Trips disappeared in the 90's.

I've heard stories of one company that build these executive apartment suites adjacent to their headquarters. I guess for out-of-town clients and management Full 70's shag carpet and all. You can imagine what sort of shenanigans went on there . . .

You can’t get any decent hookers for 50 bucks. Your parties must be a meth head, a bag of powdered sugar and a 12 pack of beast.

 

[SpokaneCY]

I'm in the shoe business. I have one client, the University of Kansas.

You should have retire rich a decade ago!

 

[clonebb]

So you can’t offer hookers and blow anymore?

 

[CYme]

I'm in natural gas business - the pipeline end of things - and it's still old-school. Golf trips, logo gear, customer meetings in cool locations, wine/dine... Later this week I'm off to San Diego for a customer meeting to golf Torre Pines a sea kayak trip. We'll do hunting trips and ski trips in Utah as well.

My end of the business is almost exclusively relationship driven. The goofy part is with interstate pipelines the rates are all tariff driven so all these entertainment costs are passed through to me in some way anyway (albeit the impact to my rates is insignificantly small).

@SpokaneCY We'll have to compare notes on conferences you attend, I am at a lot of the gas associations.

I'll echo what was said earlier, people buy from people, my industry is mainly relationship driven. In off highway equipment, everyone makes "good" or "adequate" or "serviceable" equipment, but it is going to fail at one time or another. Having a good relationship that spans from the customer to the dealer to the factory can go a long ways in making that experience more tolerable.

Providing good information on leadtime, service before, during and after the sale and being HONEST while developing those relationships is what will grow your customer base. Taking decision makers/influencers out golfing or to dinner when you are attending a conference in a destination location is just another part of building that relationship.

 

[247cy]

Because only one thing counts in this life!
Get them to sign on the line which is dotted!
A-B-C.
A-always,
B-be,
C-closing.
Always be closing! Always be closing!
A-I-D-A. Attention, interest, decision, action.
Attention: do I have your attention?
Interest: are you interested? I know you are 'cause it's f--k or walk. You close or you hit the bricks!
Decision: have you made your decision for Christ?!
And Action. A-I-D-A.

Get out there! You got the prospects comin' in. You think they came in to get out of the rain? A guy don't walk on the lot lest he wants to buy. They're sitting out there waiting to give you their money! Are you gonna take it? Are you man enough to take it?

 

[isufbcurt]

This is something that was legal in the past, but can no longer be done as a business expense in the new tax code. Which is a positive change in my opinion because it was being widely abused.

Now just because it is no longer deductible as a business expense does not mean it may not be a good idea to appeal to new clients.

hahahaha you are silly

 

[isufbcurt]

Branding is important for every business, or are you talking about sponsorship of events and things of that nature as opposed to pens, shirts and hats.

Or are you more saying that the companies are just giving freebies to these people to win their business now?

He's saying "Entertainment" is now being thrown into "Advertising"