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- #11
Abrasax
Guru
- 401
Avoiding Replacement on Price. What's the Threshold?
- Thread starter Abrasax
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- Thread starter
- #12
Abrasax
Guru
- 401
Very good point. My use of the word customer comes from another industry but I get your meaning. I know FE is usually one and done but I'd like to use a CRM and some good systems to keep myself in my clients' minds with emails, newsletters, and follow ups.
- 5,943
I look at that question a bit differently... I ask "How much am I worth to my client?"
They have no idea what that means until "the time comes" or until I start charging fees to sit down and educate people...
Today it means stopping by the police station to attempt and get an initial report...
If you are an agent that goes above and beyond... is the extra investment on your client's side worth the value added?
We are paid for the value we bring to those lives we touch...
It's more about your philosophy and less about your price...
- 26,170
Man oh man, I built a good portion of my book off the hit it run guys. Mostly FE and Term guys. Those guys are my 'Lincoln Heritage' houses you guys love to find. Just like dating, if you are a 'wam bam thank you mam' you are not getting a call to come back.
- 26,170
I look at that question a bit differently... I ask "How much am I worth to my client?"
They have no idea what that means until "the time comes" or until I start charging fees to sit down and educate people...
Today it means stopping by the police station to attempt and get an initial report...
If you are an agent that goes above and beyond... is the extra investment on your client's side worth the value added?
We are paid for the value we bring to those lives we touch...
It's more about your philosophy and less about your price...
^^^^^^^ What that guy said!
- 17,077
There are great companies with low rates and SS billing dates. Family Benefit/Trinity and Oxford come to mind.
Anytime I would ever write a company that was much higher than the lower ones I would just give them both choices.
I don't even bring up the higher price companies unless they mention they want a company that they've heard of before or something like that. ( usually phrased as: Trinity? I've never heard of them.)
You will qualify with (well known company) at $76 monthly for $10,000 coverage or Trinity Life at $75 for $11,500 coverage.
A certain percentage of them will pay a little more for a company they've heard of and see advertised. Most people choose the extra $1,500 coverage.
If you are selling high priced companies that are easy to beat and replace without a good reason (like them choosing to pay more for brand recognition) then I don't understand your logic of why. There is no reason to make your job any harder than it needs to be. Selling the policy AND keeping it on the books are just easier sticking with very competitive companies.
Anytime I would ever write a company that was much higher than the lower ones I would just give them both choices.
I don't even bring up the higher price companies unless they mention they want a company that they've heard of before or something like that. ( usually phrased as: Trinity? I've never heard of them.)
You will qualify with (well known company) at $76 monthly for $10,000 coverage or Trinity Life at $75 for $11,500 coverage.
A certain percentage of them will pay a little more for a company they've heard of and see advertised. Most people choose the extra $1,500 coverage.
If you are selling high priced companies that are easy to beat and replace without a good reason (like them choosing to pay more for brand recognition) then I don't understand your logic of why. There is no reason to make your job any harder than it needs to be. Selling the policy AND keeping it on the books are just easier sticking with very competitive companies.
- Thread starter
- #17
Abrasax
Guru
- 401
I wish we had Trinity in Florida, because I hear they have most bases covered. Oxford is for the super healthy, right?
Some of the companies that make it easiest on the agent seem to charge a few bucks a month more. If it's something they're not going to cancel or replace, and it keeps me in front of new people, then I'd say it's good for everybody.
- 17,077
No. Of the companies you have to choose from in Florida I would say that Oxford is one of the most attractive ones. They just have to be two years free of heart attacks strokes and cancer.
Oxford is real good with insulin diabetics but they don't take neuropathy like Trinity does.
The best things about Oxford are the really competitive rates, the 4-minute know before you go interview, the 120% commission level which is effectively 125% because their lead credit only needs $3,000 to hit the 5% bonus. And their underwriting is what I would call second-tier competitive. It won't take everything that Trinity, KSKJ or TransAmerica would take but it's more aggressive than some of the higher priced companies.
- 26,170
I love the Big Number v little number presentation.
$11,500.00 @ $75.
Or
$10,000. @ $76.00
More for less.
- 5,309
$10/month or less is stickier on a replacement attempt.
As Lee advised, consider selling MORE for the SAME price.
Or, offer at the close:
1) SAME Coverage, LESS Price.
2) MORE Coverage, SAME Price.
3) MORE COVERAGE, MORE Price.
It's always a good strategy to let the client make that decision.
As Lee advised, consider selling MORE for the SAME price.
Or, offer at the close:
1) SAME Coverage, LESS Price.
2) MORE Coverage, SAME Price.
3) MORE COVERAGE, MORE Price.
It's always a good strategy to let the client make that decision.
