What is a Fair Market Price?

By Jim Stavis

     Every company has its own compass when it comes to ethics. What may be ethical for one industry or company may be way out of line for another. Surely ethics in sales is not usually the quickest road to success. Cutting corners is almost always a more expeditious way to success, but may be short-lived. In the long run, the ethical salesperson will be more successful than the non-ethical sort, who is generally seeking the fast buck at the expense of the company.
     The question is, what is ethical in the first place? It is as my father once said, "knowing the difference between right and wrong". But I think that is a bit unfair because there is too much gray in between the black and white sides of right and wrong. So how about this: "Saying what you are willing to commit to and then committing to what you are saying." If you can accomplish this goal to your customer, you are on your way to being an ethical salesperson.
     In addition to being a person of integrity and ethics, most business owners understand that selling with a conscience makes good balance sheet sense over time. Here are a few reasons why:

Reputation Counts — An impaired reputation is death for a company. Selling ethically translates to treating customers, suppliers and employees with dignity and respect. If an employee is disgruntled over his commission plan, it will be reflected in how he treats his customers.

Your Sales People Are Your Company — Many times the sales person is the only point of contact with your customer. If a sales person crosses the ethical line by low-balling, price gouging or making unrealistic promises, your customer will not trust you or your company in the future. Sellers become the ambassadors of your company and help to develop the customer's perception of who you are.

Cynicism Buster — Since many buyers do not trust salespeople to begin with, it is important to foster trust and dependability in dealing with them. If a sales person can create an element of trust with the customer, it will go a long way in developing a business relationship.

Repeat Customers are Golden — A company with a reputation for ethical behavior has a much better chance of gaining future business. Unlike a used car salesman, the steel sales person knows that his customer will need steel again in the future. For that reason it makes good sense to treat them right.

As mentioned in the beginning of this article, the owners and management of a company draw the ethics line. It should not be drawn individually for each sales person. The line should be clear and monitoring is necessary to insure compliance. By requiring sales representatives to sell with class only enhances your company and the image that you project to the marketplace.