Taking On Bad Buyers

I write about salesdrip behavior all the time -- some say too much. But my mission is to bring honesty back to the sales profession, and exposing the bad behavior so people can avoid being manipulated by it is a key component of that effort.

Today, however, I'm giving the salesdrips of the world a break and taking on the buyers instead. After all, when you track the creation of manipulative tactics in sales, much of the manipulation can be linked to bad buyer behavior.

The Sandler Sales Institute's entire selling system, for example, is based on David Sandler's experiences of being lied to by prospects. In fact, the first thing in his book that he felt was important enough to put in bold print is the numbered statement: "1. The prospect lies to you." Unfortunately, Sandler took a "win the war" approach to resolving the problem, which is why the system he created is so manipulative -- and why he advises that salespeople "get over their negative view of the word manipulation" to be successful.

But today, I'm writing an opinion piece on what I believe is horrid buying behavior, not bad selling behavior. And this particular instance is close to home, because it involves a billion-dollar company screwing over a one-person company, and that one person just happens to be my wife.

Two things you should know about me before I continue:

• There is nothing that makes my blood boil faster than a bully.
• Except when someone messes with my wife.

Let's get down to the facts:

On January 26, 2009, Smurfit-Stone (the entire company including all its business units worldwide) filled for Chapter 11 bankruptcy. Any unpaid invoice was, from that moment, included in the proceeding. And according to what I read about federal bankruptcy law, creditors are severely limited as to what they can attempt to do to collect. Thank goodness Editing Ink (Cindy's company) is a sole proprietorship and my name is not to be found anywhere on it. So while her hands are tied (I'm not even asking her to copyedit this post), there is nothing whatsoever to keep me from voicing my opinion on the matter.

What is interesting about the January 26 filing date is that on December 2, 2008, (exactly 55 days earlier) Mike Mullin, Director of Media Relations  & Public Affairs at Smurfit-Stone Container Corporation in Creve Coeur, Mo., authorized Cindy to copyedit the online biographies of the company's 27 top corporate officers.

And the twist that makes this a story about dishonest buying is that Smurfit-Stone is well-known for having a 66-day net invoice requirement. (All vendors know they will not get paid for 66 days from date of invoice.)

A first-grader could do the math and see that Mullin hired my wife to improve the image of his company's entire corporate officer team in preparation for bankruptcy, while knowing full well her invoice would not get paid before that very bankruptcy was filed.

But even that isn't the whole story.

In November of 2008, two different Smurfit-Stone employees -- one of whom answers directly to Mullin -- hired Cindy to copyedit the company's Investor Fact Book and it's corporate newsletter. And while those invoices were due prior to the January 26 filing, both payments were delayed and the invoices were thereby incorporated into the Chapter 11.

And as if that wasn't enough, Cindy was informed via an e-mail from a Smurfit-Stone employee that her invoices totaling $1,788.75 were the smallest in the entire list, and she should therefore stop complaining about it.

1. Did Mullin make a bad-faith purchase during preparation for bankruptcy?
2. Was there a conspiracy to defraud vendors perpetrated by the communications department at Smurfit-Stone?
3. Did the accounting department purposely withhold payment of over-due invoices specifically to move even the smallest of debts into the Chapter 11 proceedings?
4. Did Smurfit-Stone violate federal guidelines for filing Chapter 11?

When will corporate officers at billion-dollar companies stop screwing the little guy?

While only Smurfit-Stone and the federal government can answer the first four questions, I can answer the last.

Corporate officers will stop screwing the little guy when the little guys of the world ban together and make it more advantageous for them to be honest than dishonest.

Will you join me in my fight with the Smurfit-Stone Goliath?

• If you're on Twitter, Facebook, LinkedIn or any other social media sites, please voice your opinion openly.
• If you blog, feel free to post your own thoughts and reference this article.
• If you know of a business reporter for a newspaper or TV show, please download and forward this press release on our behalf.
• If you care to voice your opinion to Mike Mullin directly, feel free to e-mail him yourself. 
• If you know one of these 27 corporate officers whose professional images Cindy improved, contact him or her and speak up (they may not be aware of Mike's actions yet):
• • Patrick J. Moore, Chairman of the Board and Chief Executive Officer
  • Steven J. Klinger, President and Chief Operating Officer
  • Paul K. Kaufmann, Senior Vice President and Corporate Controller
  • Douglas M. Keim, Vice President of Innovation and Chief Marketing Officer
  • Matthew J. Blanchard, Senior Vice President and General Manager of Board Sales
  • Joseph V. LeBlanc, Vice President of Research and Development
  • John Haudrich (LinkedIn), Vice President of Investor Relations
  • Steven C. Strickland, Senior Vice President of Sales, Container Division
  • John L. Knudsen (LinkedIn), Senior Vice President of Manufacturing, Container Division
  • Paul W. McCann, Vice President and General Manager of Asia
  • Regina G. Wyse, Vice President and Controller, Container Division
  • Charles A Hinrich, Senior Vice President and Chief Financial Officer
  • Edmund L. Quatmann, Vice President of Internal Audit
  • Ronald J. Megna, Assistant General Counsel and Assistant Secretary
  • Nina E. Butler, Vice President of Environmental Affairs
  • Susan M. Neumann, Senior Vice President of Corporate Communications and Public Affairs
  • Mark R. O'Bryan (LinkedIn), Senior Vice President of Strategic Initiatives and Chief Information Officer
  • Mack C. Jackson, Senior Vice President and General Manager, Mill Division
  • Craig A. Hunt, Senior Vice President, General Counsel and Secretary
  • Ronald D. Hackney, Senior Vice President of Human Resources
  • Matt Denton, Vice President of Business Planning and Analysis
  • James S. Chou, Vice President and Controller, Mill Division
  • Christopher J. Brescia, Vice President of Government Affairs
  • Peter F. Burke (LinkedIn), Vice President of Global Logistics
  • Michael R. Oswald, Senior Vice President and General Manager, Recycling Division
  • David P. Harrison, Vice President of Strategic Sourcing

The executives that run major corporations will never stop this behavior until it stops working. We can make that happen starting today.

Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association

Comments

[Kay Flanery]

Gill,

Glad I saw this. Sorry it happened to you & your wife. I agree that the media manager most likely violated both laws & morals.

In the company I work for, we have a pre-pay or pay at time of service policy. We state it up front & it does several things for us...we don't need as much back-office staff to follow up on collections. This also reduces disputed bills & keeps fees a bit lower.

I have heard of notorious companies who make money by delaying payment or having strict shipping, packing & invoice rules. They even do charge-backs if you don't do it correctly (May Co.) We don't do business with those guys. My boss has told us to walk away if our gut sends messages.

Thank you. Kay Flanery, JCS Computer Resource Corp.

[Brad Simpson]

Gill,

If Mr. Mullin had ample foreknowledge of the bankruptcy filing, his behavior is unconscionable, particularly since Cindy's services were not essential to day-to-day operations. And the decision to let invoices (comparatively small ones, at that) go past due, to roll them into the bankruptcy is, as one of my colleagues used to say, "chicken _ _ _ _."

As someone who has experienced, and was ultimately a casualty of a Chapter 11 reorganization, I am inclined to think that Mr. M knew exactly what he was doing, for the following reasons:

1. As Director of Media Relations and Public Affairs, surely he would have been in the loop on a matter as weighty as bankruptcy, as communicating its details and putting a positive spin on it, would primarily be his responsibility. It is inconceivable that any responsible CEO would keep someone thus charged in the dark, until the last minute.

2. Because many 'ducks' have to be lined up in advance, preparing and filing for protection under Chapter 11, is liable to take months.

As for the "quit complaining" e-mail: If the sender got stiffed, would they go silently? And what has the amount owed, to do with anything? It is not only beside the point, but presumes that $1800 is insignificant - which it isn't, to a small business owner.

Under Chapter 11, the court will determine who gets paid in what priority, and establish how much they are to receive. How long that will take, is anybody's guess. For Cindy's sake, I hope it is sooner, rather than later . . .