SALESMANSHIP

Otago Daily Times, Issue 22365, 12 September 1934, Page 17

SALESMANSHIP

SOME INTERESTING REVELATIONS STATEMENTS BEFORE COMMISSION. Present-day methods of salesmanship as applied to the investment trust system were revealed before the Royal Commission at Sydney, which is inquiring into the activities of 17 trust companies operating in New Zealand and Australia. A radio station to give the gelling organisation a voice on the air to answer adverse propaganda, an extensive system of gelling the debentures and the taking in exchange of negotiable securities and cash, and an instructional department, in which salesman were tutored in the art of selling, ahd a secret code between directors, were alluded to at a recent sitting, according to Australian newspapers which have arrived here. Mr V. B. M'lnnes, director of companies bearing his name and operating in New Zealand tind 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 Jarvic was present, and at which witness alluded to those present as units, witness admitted that he 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 Halae Rogers, witness said that a private code was to be compiled for use between the directors, but he was not aware that it had been compiled. The commissioner: Is there a private code?—There is a code book. Is there a private code composed in pursuance of a resolution of June 6?— Yes. Mr. Hill, the secretary, has it. The commissioner: Ask Mr Hill to bring the code book here. In answer to Mr Monahan (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 £90,000,000, Mr Monahan: Your travellers were ijistrusted to tell people who were asked to buy Investment Executive Trust and Southern British debentures that the funds of the debenture holdets were being invested in that typo 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 £1180?—-No.

“ TELLING A SIMPLE,; STORY.” “We were selling through the ere duet, telling a simple story,” said witness, in reply to further questions. Mr Monahan; Did you prepare instructions for your canvassers! The commissioner: You have literature that they learn off by heart?— Exactly, The commissioner: In some countries' it is vulgarly called “patter.” Mr Monahan: In others it is ■vulgarly called “dope.” POINTS FOR SALESMEN. Counsel assisting the commission next quoted from a circular, “Points to Reniembcr”:— “When calling upon your Mr Prospect” remember, as you enter his office 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 investnient 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.” “Explain tbe principle with the help of the map.” Mr Monahan (to witness): You know that map would create a false impression that an enormous body of the capital is invested in the type of companies shown? Witness did not answer the question, and admitted that he did not know where the funds were actually invested. Mr Monahan: Is this one of your principles out of the “ Points to Remember” : “Talk a cash investment to your prospect. Remember, he is more likely to ask advice from a third party as regards transferring existing investments 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 Jarvic was present, witness said ho had spoken on 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? —No. “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 Carlyle's. . .

VALUE OF REITERATION. Answering Mr Monahan, witness said that in addressing the > meeting at which Major Jarvie was present he had talked ■ about the “ Yes” habit, and that he had said that one of the first things to remember by a salesman was that he must realise the psychological value of reiteration and th? value of the “ Yes ” habit. The commissioner; I suppose you believe salesmanship is the greatest art of the twentieth century ?-i-Real sales- 1 manship. Mr Monahan (to witness): Did you give this example of the “Yea” habit; “As an example I will go to the extreme to prove my case. I had been with this man. on 12 occasions and got that man to say ■ Yes’ on every occasion I asked him a question. I put it in such a way that he had to say * Yes * so many times that it made, it iiarder for him to say ‘No’? ” (Laughter.) The commissioner: I don’t think w# need proceed with thii any further. V