SALESMANSHIP.

Auckland Star, Volume LXV, Issue 205, 30 August 1934, Page 5

SALESMANSHIP.

THE "YES" HABIT. COMPANY INQUIRY SIDELIGHTS V. B. McINNES AS WITNESS. Twentieth century methods of salesmanship as applied to the investment trust system were revealed before the Royal Commission at Sj'dney, which is inquiring into the activities of 17 trust companies operating in Xew Zealand and Australia. v A radio station to give the selling organisation a voice 011 the air to answer adverse propaganda, an extensive system of selling debentures and the taking in exchange of negotiable securities and cash, and an instructional department, in which salesmen were tutored in the art of selling and a secret codo between directors, were matters alluded to at last Saturday's sitting, according to Australian newspapers which arrived in Auckland this morning.

Mr. V. B. Mclnncs, director of companies bearing liis namo and operating in !N r o\v Zealand and Australia, which acted as brokers for the Investment Executive and the Southern British Trusts, was in the witness box all day.

Questioned about a conference addressed by him in the Trust Building in Sydney, at which Major Jarvie was present, and at which witness alluded to those present as units, witness admitted that lie had addressed the gathering on the simplicity of the story to be told and the security of share capital to debenture holders. Private Code. In answer to the "commissioner, Mr. Justice Halse Rogers, witness said that a private code was to be compiled for lise between the directors, but he was not aware that it had been compiled.

The Commissioner: Is there a private code i.—There is a code book.

Is there a private code composed in pursuance of a resolution of June 6? — Yes, Mr. Hill, the secretary, lias it. The Commissioner: Ask Mr. Hill to bring the code book here. In answer to Mr. Monahan, K.C. (assisting the commission), witness said his salesmen were supplied with a prospectus, a brochure and a map. At the side of the map there was a list of oversea companies, including the name of the Pacific Railway Company, capital £95,000,000. •Mr. Monahan: Your travellers were instructed to tell people who were asked to buy I.E.T. and Southern British debentures that the funds of the debenture holders were being invested in that type of company, which is among the best known in the world? Witness did not answer. The, Commissioner: Do you know the amount referred to as having been so invested was £11S0?—No. "We were selling through the eye duct, telling a simple story," said witness, in reply to further questions. Sir. Monahan: Did you prepare instructions for your canvassers? - The Commissioner: You have literature that they learn oil' by heart?— Exactly. The Commissioner: In some countries it is vulgarly called "patter." Mr. Monahan: 111 others it is vulgarly called "dope." Points to Remember. Counsel assisting the commission next quoted from a circular, "Points to Remember." "When calling upon your 'Mr. Prospect,' remember, as you enter his oflice or home, you are a salaried officer, and remember also that your 'prospect' does not know very much about the trust principle."

"Introduce yourself as follows: 'I am from the Southern British National Investment Trust, Ltd. I am an investment officer and have been asked to call on you to explain the service which we have to offer in connection with protecting and insuring your investment capital." "What we do is this, Mr. Prospect. We spread the combined funds of many investors, both large and small, over such a large number of sound investments that there is very little risk."

"Kxplain the principle with the help of the map."

i Mr. Monahan (to witness): You know ! that map would create a false imprcs- | sion that an enormous body of the capi- ! tal is invested in the type of companies | shown? j Witness did not answer the question, and admitted that he did not know where j the funds were actually invested. I "To Go for the Cash." I ilr. Monaltfan: Is this one of your | principles out of the ''Points to Remember": "Talk a cash investment to your prospect. Remember, he is njore likely to ask advice from a third party as | regards transferring existing invest- '■ ments than if asked for cash"? Witness: Yes, to go for the cash. But that is not my letter. Alluding to the conference addressed by him in the Trust Building at which Major Jarvie was present, witness said lie had spoken 011 the basis that a story must be told in a simple manner. The Commissioner: By this eye picture, so to speak. Mr. Monahan: In other words, so that the simple-minded present would be able to appreciate it? —Xo. "It is a psychological fact that it is easier to register through the eye duct." added witness. The Commissioner: I think it is a proven truth. Mr. Monahan: Yes, wrapped up in large words like C'arlyle's. _ Value of Reiteration. Answering Mr. Monahan, witness said that in addressing the meeting at which i Major Jarvie was present lie had talked about the "Yes" habit, and that lie had said that one of the first- things to remember by a salesman was that he must | realise the psychological value of reiteration and the value of the "Yes" habit.

j The Commissioner: I suppose you be- . ; lieve salesmanship is the greatest art •! of the 20th century? —Real salesman- . | ship. :j Mr. Monahan (to witness): Did you I give this example of the "Yes" habit: ■ "As an example I will -o to the extreme II to prove my case. I had been with this | man on 12 occasions and got that man I to say 'Yes' on every occasion I asked , him a. question. I put it in such a, way that he has to say 'Yes' so many times that it made it harder for him to say 'Xo'?" (Laughter.) The Commissioner: I don't think we need proceed with this any further.