LD 12-2

03/08  

ABSTRACT

"IT'S ONLY SEVEN LETTERS": The Art of Selling Ideas

 

Prepared by:   Renée Daugherty

                        233 HES/HDFS

                        Cooperative Extension

                        Stillwater, OK 74078

                        (405) 744-6282

Reprinted from The Art of Woo: Using Strategic Persuasion to Sell Your Ideas by G. Richard Shell and Mario Moussa with permission of Portfolio, a member of The Penguin Group, Inc. (USA), copyright G. Richard Shell and Mario Moussa, 2007.


 

In their new book, The Art of Woo: Using Strategic Persuasion to Sell Your Ideas, G. Richard Shell and Mario Moussa, two experts in the field of negotiations, demonstrate that winning others over to your cause takes not only solid arguments but emotional and relational  know-how. In the first chapter of their book, Shell, a professor of legal studies, business ethics and management at the Wharton School, and Moussa, a principal of the consulting firm CFAR Inc., offer this pithy lesson in persuasion from Wal-Mart's early history:

 

When the young Sam Walton was trying to figure out what to call his first large discount store in Rogers, Arkansas, one of his key employees, store manager Bob Bogle, had a great idea for a name -- "Walmart" (the hyphen in Wal-Mart came later in the company's history). Walton had started out running a Ben Franklin variety store in Bentonville and eventually turned it into "Walton's Five and Dime." Now it was time to come up with a name for Sam's new bigstore concept. Most of the names Walton was considering, like the old Walton's Five and Dime, had three or four words.

 

Bob came up with his "Walmart" idea by combining the first syllable from Sam's last name with a shorthand word for "market." It was a pretty good idea, but pitching his boss on it was tricky. Bob figured Sam would be flattered to have a store that alluded, however indirectly, to his name. But Sam Walton did not like to parade his ego. So Bogle decided to sell his idea by appealing to one of Sam Walton's most fundamental core values: saving money. Listen as Bob Bogle tells his simple story (as recounted in Sam Walton's autobiography Made in America):

 

I scribbled W-A-L-M-A-R-T on the bottom of [a] card, and said [to Sam] "To begin with, there's not as many letters to buy." I had bought the letters that said "Ben Franklin," and I knew how much it cost to put them up and to light them and repair the neon, so I said, "This is just seven letters." He didn't say anything, and I dropped the subject. A few days later I went by to see when we could start setting the fixtures in the building, and I saw that our sign maker ... already had the W-A-L up there and was headed up the ladder with an M.... I just smiled and went on.

 

Bob Bogle's sale of the name "Walmart" to his boss is as straightforward as idea selling gets. But even this simple example illustrates some basic principles of effective persuasion.

 

First, Bob had a specific goal: persuade his boss to adopt the "Walmart" name for the new store.

 

Second, Bob identified the decision maker -- Sam Walton -- and presented his idea directly to this person.

 

Third, Bogle drew on his credibility as one of Walton's key employees. You don't need to be a key employee to sell an idea. But you do need to have credibility.

 

Fourth, Bob Bogle appealed to one of Sam's core interests -- a single-minded focus on cost. Low cost was a value that Sam Walton saluted every day, so pitching the "Walmart" idea in terms of cost was exactly the right way to get Sam's attention.

 

Fifth, Bogle used his knowledge of Walton as a person. Sam solved problems as they came up, so Bob picked his moment to pitch his idea. That moment came during a trip the two men were taking together just days before a sign would be needed to go on the front of the new store. And because the sign was something the public would see, Bob wrote it out for Sam to visualize.

 

Walton also liked to mull things over. So Bogle resisted the temptation to oversell. He put his justification out there and then stopped talking.

 

Finally, all of this took place as part of a relationship. Bogle and Walton were working together to solve problems. They trusted each other. So Bob "just smiled and went on" when Sam decided to use the Walmart name. And Walton put Bogle's story his autobiography after he became a billionaire. Both men, in short, did very, very well in this relationship. We will be emphasizing the importance of relationships, communication channels and presentation strategies throughout the book.

 

With this example in mind, it may be easier to understand what makes selling ideas different. It's not about tricking people into buying things they do not need. It's about helping people see things your way -- engaging their minds and imaginations, then getting them to take action on the idea you recommend.

 

Note:  This excerpt is