Need Advice from Experienced Commercial Agents

[VaDwayne]

I have had a couple of potential clients take my quote to their current agent and they end up matching the premium, or beating it by very little. This has only happened a couple of times, but is this just a common occurence in commercial insurance, or am I doing something wrong.

I had one today that was a restaurant, who didn't have liquor liabilty for two years, even though they though they did. I gave them a quote that included it, had $900,000 more fire legal, and the premium was on $20 more than their current premium.

They went right to their agent, who wrote the liquor liability, lowered their premium, and they decided to stay with him regardless of the fact that they went 2 years with a liquor liability risk.

Any help surely would be appreciated.

 

[JCK818]

Re: Need Advice from Experienced Commercial Agents..

I would have started by telling him, "I cannot believe your agent did this to you". That client was in great danger. You should have made him realize that is what makes you different from other agents, you do what is best for your clients from day one!

 

[YouGotMyMoney]

Re: Need Advice from Experienced Commercial Agents..

Are you qualifying these prospects that if you can better they're situation , that they will do business with you?

You sound like a chump who goes into a bar and buys all the pretty girls a drink with the hopes she will go home with you, meanwhile she's laughing with her friends what a loser you are for buying a stranger a drink, when she's going home to her baby daddy for some rough lovin.

 

[Bertolinoins]

Re: Need Advice from Experienced Commercial Agents..

I have had a couple of potential clients take my quote to their current agent and they end up matching the premium, or beating it by very little. This has only happened a couple of times, but is this just a common occurence in commercial insurance, or am I doing something wrong.

I had one today that was a restaurant, who didn't have liquor liabilty for two years, even though they though they did. I gave them a quote that included it, had $900,000 more fire legal, and the premium was on $20 more than their current premium.

They went right to their agent, who wrote the liquor liability, lowered their premium, and they decided to stay with him regardless of the fact that they went 2 years with a liquor liability risk.

Any help surely would be appreciated.

Yes, this is very common in commercial insurance. The bigger the account... the harder the agent tries to keep them. It isn't fair but that is how longterm business relationshiips work... many business owners don't want to make many changes so if he can make it a "tie"... he usually keeps the business. You don't just have to come up with a good quote... you need to break the relationship they have in place with their current agent or have a price they cannot beat or match. There are several ways to do this but one of the most effective is called "The Wedge". With this program/system... it teaches you how to prep the client to fire their current agent during the sales process. Here is a link to the book that outlines how to drive a wedge between commerical clients and their brokers.

The Wedge Group: Books & Audio

 

[Labman]

Re: Need Advice from Experienced Commercial Agents..

Your biggest problem is not getting them to agree upfront that if you bring them something better that they will do business with "you"! Otherwise you are just a quoting tool. Is that how you want to spend your time? And yes, the Wedge is an excellant book that you should read but there is much more to learn. The incumbent is your primary problem, always remember that.

 

[VaDwayne]

Re: Need Advice from Experienced Commercial Agents..

I would have started by telling him, "I cannot believe your agent did this to you". That client was in great danger. You should have made him realize that is what makes you different from other agents, you do what is best for your clients from day one!

I did that, but it didn't seem to matter, as long as he matched my premium.

 

[Air Jer]

Re: Need Advice from Experienced Commercial Agents..

VaDwayne, it's not you. It's called getting rolled and it happens to all of us. You try and qualify as best as you can and that screens some of it out but you never eliminate it completely. The strongest element to overcome is not price or coverage but the relationship between your prospect and the incumbent. I highly recomment "The Wedge" by Randy Schwantz which was mentioned earlier. If you can pony up the cash, go to a Dynamics of Selling seminar put on by The Academy. These will all help you to minimize getting rolled but you will never eliminate it completely. Hope this helps some.

 

[xrac]

Re: Need Advice from Experienced Commercial Agents..

I did that, but it dodn't seem to matter, as long as he matched my premium.

VADwayne, as Bert has said you need to buy, read, learn, and apply the "Wedge" techniques. This will solve your problem and save you a lot of time.

 

[VaDwayne]

Re: Need Advice from Experienced Commercial Agents..

Yes, this is very common in commercial insurance. The bigger the account... the harder the agent tries to keep them. It isn't fair but that is how longterm business relationshiips work... many business owners don't want to make many changes so if he can make it a "tie"... he usually keeps the business. You don't just have to come up with a good quote... you need to break the relationship they have in place with their current agent or have a price they cannot beat or match. There are several ways to do this but one of the most effective is called "The Wedge". With this program/system... it teaches you how to prep the client to fire their current agent during the sales process. Here is a link to the book that outlines how to drive a wedge between commerical clients and their brokers.

The Wedge Group: Books & Audio

Thank you for the advice. It doesn't happen much, but once is too many and I was simply searching for new ideas to reduce my chances of it happening. I really appreciate the advice.
- - - - - - - - - - - - - - - - - -

VaDwayne, it's not you. It's called getting rolled and it happens to all of us. You try and qualify as best as you can and that screens some of it out but you never eliminate it completely. The strongest element to overcome is not price or coverage but the relationship between your prospect and the incumbent. I highly recomment "The Wedge" by Randy Schwantz which was mentioned earlier. If you can pony up the cash, go to a Dynamics of Selling seminar put on by The Academy. These will all help you to minimize getting rolled but you will never eliminate it completely. Hope this helps some.

I just purchased the book a few minutes ago. As I stated earlier, it really doesn't happen often but it is certainly frustrating.

Example: I had a contractor meet me at my office today. His current commercial auto and BOP are running him about $2300 a year.

I asked him what I would have to do to earn his business and become his new agent. He said that he has been with his agent for a long time and that I would have to save him at least $500 per year in order for him to consider switching.

I haven't spoken to him yet, but his premium came back at $1891 per year without any credits applied at all.

This is a prime example of what I know, and that is if I just give him the quote he is going to call his agent to match it. How would you stop this from happening?

I am thinking that I should call him and tell him that it looks like we can do what he want's but I need to see him in person to go over the quote. If he say's no, and to give it to him over the phone, simply tell him that I need to really sit down with him to explain the carriers extra coverages, If he refuses, don't give him the quote, and tell him if he wants to save the money, let me know.
- - - - - - - - - - - - - - - - - -

VADwayne, as Bert has said you need to buy, read, learn, and apply the "Wedge" techniques. This will solve your problem and save you a lot of time.

thanks, just purchased

 

[Labman]

Another area, I think you missed is finding pain outside of price. Of course, he may very well ask the other agent if he can match your price. Buyers can lie to salespeople and still go to heaven ya know?

Find a problem outside of price, drive a wedge and you stand a much better chance. You should have established an agreement up front that if you brought a better price and/or fixed his problem, he would switch. A good sales class would work wonders for you. I know, I've been there too many damn times.

If you are worried about the situation above, I would call him and tell him I have a significant saving with a comparable product. Then say Bob, we still have one "big"hurdle, what are you going to tell your agent. It's too much for me to write here, but his reply could very well tell you a lot about whether you are wasting your time or not.