Instant Sales Tips: Agency Report Cards
It’s price that makes or breaks the sale. But why does price mean more to the producer than it does to the buyer? After all, you don’t always buy the cheapest.
Regardless, price does matter when your buyer can’t determine the difference between your offer and their current program. But you’ve been bombarded with that many times.
So, let’s role-play a few ways to address price and the words to use in front of a buyer. Experiment and keep good records of what works for you and what doesn’t. Be sure you believe whatever you say so your words sound genuine and sincere. Radical honesty counts, so be radically honest.
Most buyers have been trained that price counts … Wal Mart, the Internet, Costco, etc. So, why not address price up front. You might say: “No matter what value we bring, we know that as a good business person, price is important to you.”
It’s OK to say: “If price is all there is to talk about, should we continue to talk?” Be sure to listen closely to the answer and to the pause before you hear an answer.
When you’re presenting to someone who is also a salesperson or from a business that sells, and every business sells, you might ask: “Please share with me how you train your salespeople to sell your product?” If the answer is; “We stress we have the lowest price.” Then you can guess how price will play a decisive factor in your proposal. But my guess is that they won’t say “lowest price.”
You should also have in your arsenal: “You know price without a basis for comparison is meaningless. May we go through how we might earn the right to manage your account before we discuss price?”
If the buyer says: “No, let’s talk price now.” Then your comment is back to: “If price is all we have to talk about, should we continue to talk? I haven’t really earned the right to manage your account so may I stay close to you during the coming year to earn the right for your next renewal?”
Another thought might be to not include the premium page in your proposal. “I thought you would like the chance to show this to other people without prejudicing them about the benefits because of the focus on price.” But include, “I know that no matter what benefits I bring, price is important to you.”
You may also want to include three or four prices in your proposal with different coverage so buyers focus on their risks and the way you manage the insurance program, not the cost of the risk. Buyers think producers get paid more than we do. So selectively, you might let your buyer know how “little” you make. After all, how many businesses you call on have a gross profit margin of under12 percent or so? Most buyers will be surprised.
Sure, price counts more today and as rates and cost of insurance plummets (again) stay ahead of the game. Smartly overcoming price determines the great from all the rest. So, if you don’t value your value, why should your buyer?
Preston Diamond, president and founder of Chapel Hill, N.C.-based 6th Sense Insurance Proposals, can be reached at: (919) 929-8483, e-mail: ideas2go@mindspring.com, or visit: www.insuranceproposals.com and www.work-compadvisors.com.