After Price $$$, what Are the Three Most Important Features for Small Business Owners?

[Rick Deckard]

I get it, you have a quote for $2500, next guy is $2450 and you're sunk. But assume by the grace of Elvis you might still have a chance to close the deal, what features or services have you found are most important to many of the small businesses you have called on over the years?

I also understand that when you give a quote for Insurance Company A, that cannot be re-quoted by a different agent, do I have that right? The other agent competing can get a different quote from another company I assume.

Let's focus on the client and not us for a minute. What matters to Joe Blow the owner?

 

[VolAgent]

You are talking about a 2% difference in premium. It is negligible. That is where you need to be selling yourself and any differences in coverage.

Yes, $50 is $50, but hopefully you or the carrier is worth way more than that. If not, well then you deserve not to get the account. And if the owner is just that focused on premium when there are clear differences in coverage or service, then you didn't really want him as a client anyway.

 

[insurance1822]

My input is this...don't be competing against anybody. 99% of my business is referral & they aren't shopping me. i HATE when I'm competing.

Stack the odds in your favor & build referral sources. Otherwise, you're fighting in the open market

 

[VolAgent]

My input is this...don't be competing against anybody. 99% of my business is referral & they aren't shopping me. i HATE when I'm competing.

Stack the odds in your favor & build referral sources. Otherwise, you're fighting in the open market

While I agree with you, that does ignore the fact you are always competing with something. Whether it be the current carrier or inertia in not doing anything. At least with a referral it is you versus the status quo instead of you versus numerous agents AND status quo.

 

[mplsmm]

Oh, referrals. That's a novel idea. I will write it down. Seriously though, why is it that when every new agent asks about how to get business, the agents that have been around forever just say work your book or get referrals? When you are new, that is the worst advice. We don't have a huge book yet and I have people that look the other way when they see me coming for fear I will ask for more referrals. My book is worked so hard right now that most of my clients sent me Christmas cards. I had a 18 year SF agent that probably gets spoon fed 25 leads a day tell new agents not to buy leads or cold call, just work off referrals. If that doesn't deserve a throat punch, I don't know what does. As for a $50 difference, I just stress myself and my commitment. I make a joke about it, I am totally worth $50, now when you start talking hundreds my mom won't even switch, but $50?

 

[WillC]

During my small business days -- a $3 millionish printing company -- my insurance agent correctly anticipated a risk I hadn't considered and "sold me" a Hartford Steam Boiler policy covering catastrophic mechanical failure of my only large press. It failed -- catastrophically -- and I continued in business rather than close my doors, which would have been the no-coverage outcome. He was my trusted advisor. He saved my business. I never asked him once about comparative pricing, in over 25 years.

 

[insurance1822]

Oh, referrals. That's a novel idea. I will write it down. Seriously though, why is it that when every new agent asks about how to get business, the agents that have been around forever just say work your book or get referrals? When you are new, that is the worst advice. We don't have a huge book yet and I have people that look the other way when they see me coming for fear I will ask for more referrals. My book is worked so hard right now that most of my clients sent me Christmas cards. I had a 18 year SF agent that probably gets spoon fed 25 leads a day tell new agents not to buy leads or cold call, just work off referrals. If that doesn't deserve a throat punch, I don't know what does. As for a $50 difference, I just stress myself and my commitment. I make a joke about it, I am totally worth $50, now when you start talking hundreds my mom won't even switch, but $50?

Hmmm.....You may be right. So for me to clarify, I started out working internet leads, calling monoline customers, calling people who left, harassing friends/family/neighbors etc. Everybody who I wrote, I asked for 3 names to quote them. I spent equal time shaking hands w COI's though. But yes in the beginning, you need to beat the streets and have thick skin.

and god...did i HATE doing that. But when I gave up trying to act professional & just took people out for happy hour & got drunk w/ them...things turned up.

 

[FLInsa]

Ok, here is my semi-annual contribution to the Forum. I don't like referrals AT ALL, especially the referrals coming from realtors.

And perhaps the only thing I dislike more than referrals are those BNI meetings where everyone that goes there acts like your friend but are really just there to sell their product (like you are).

I have found over my little journey that to experience sustainable growth year after year you have to create your own marketing program of writing business and not depend on any one person or people.

(Kirby, shhh!)

 

[VolAgent]

During my small business days -- a $3 millionish printing company -- my insurance agent correctly anticipated a risk I hadn't considered and "sold me" a Hartford Steam Boiler policy covering catastrophic mechanical failure of my only large press. It failed -- catastrophically -- and I continued in business rather than close my doors, which would have been the no-coverage outcome. He was my trusted advisor. He saved my business. I never asked him once about comparative pricing, in over 25 years.

You get it.

I will freely admit, I am brand spanking new to this side of insurance. But I have sold insurance for a number of years. You aren't always going to be the cheapest and people will make stupid decisions.

But if your business model is solely being the cheapest quote out there, then you are competing with the Geico's and state minimum companies of the world. Or the unethical agents who misrepresent the business to the company to get a policy bound. I understand there is a lot of that going on in the commercial arena and it is a shame.

Be competitive on the rate AND delivery some value. You will likely have a hard time getting someone to pay a certain percentage more without serious value, but you can easily get them to pay a little more with just some value. What those percentages are varies from person to person and how much value they put on something.

Take a moment and look at your smartphone. If it is an iPhone or Samsung Galaxy, you almost certainly paid much more than you would have for a "cheaper" or older phone. After all, the days of subsidized phones from the wireless carriers is basically over. However, you made a conscious decision to pay more for what you felt was a better phone. Give your prospects the chance to do the same.

And finally, I realize this is easy to say. However, it is the truth. The biggest revelation in my business was something I learned years ago. Operate from a surplus of prospects. That can be leads, referrals from COIs/clients/etc., cold calling, door knocking, whatever.

 

[Rick Deckard]

I will put one up that seems to come up with a few folks I speak with.

-CONVENIENCE: Being able to go on line and get a quote without any hassle from a sales person is appealing to a decent number of folks.

And along those lines I am finding/learning that people assume if you buy private from an agent that you are paying more. Esurance, Geico, a lot of folks think they are cutting out the middle man or agent by going that route.

I think a lot of my initial post was lost in translation here.