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Can't say I'm familiar with the name Cotton System, yet I do know an old saying that goes something like this, "Ask and thou shall Recieve". Okay, this is now a Religious Thread! NOT!!!
When and how do you ask for a budget?
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Can't say I'm familiar with the name Cotton System, yet I do know an old saying that goes something like this, "Ask and thou shall Recieve". Okay, this is now a Religious Thread! NOT!!!
- Thread starter
- #12
Thanks for the advice all.
I must say I disagree with you justong. Perhaps that fella was a hell of a salesman, but I would venture to say that he couldn't do the same thing in the insurance biz. Perhaps he could outsell us all, but I bet he'ld have a hard time convincing a 45 year old single hair stylist with a teenage son that price is no object. If price was no object, we could sell one policy and then cross-sell everything in our toolbox.
I must say I disagree with you justong. Perhaps that fella was a hell of a salesman, but I would venture to say that he couldn't do the same thing in the insurance biz. Perhaps he could outsell us all, but I bet he'ld have a hard time convincing a 45 year old single hair stylist with a teenage son that price is no object. If price was no object, we could sell one policy and then cross-sell everything in our toolbox.
Hmm, I believe your asking the wrong question. Ask someone what they want to pay for health insurance, and the answer will always be either nothing or as little as possible.
The approach is wrong.
Start the conversation with friendly chit-chat. Include in this what they do for a living, where they work, etc. Basically, make sure they have an income stream and it's above the average McDonald's hamburger flipper.
Then the tough part. Ask them why they want health insurance. Seriously. No, I mean really ask this question. Unlike what is in the media today, nobody needs health insurance to get healthcare, so why does someone really want health insurance. This will get you into a long conversation about various things they want in a health plan.
At the end, ask them how many times they have been to the doctor in the last 3 years. If, like me, they say none, then they probably don't want to pay an extra $50 a month to have unlimited office visits. If they have been twice, find out what was done (cold, broken leg, asthma, whatever). If they've been 12 times then they will want doctors visits, and probably not writable.
Then proceed to ask questions like 'if I could save you some money on your monthly premium, would you be willing to pay a higher fee to see the doctor?'. Work through some questions to get a sense of their tolerance for a deductible and office visit fees.
Then ask, if they currently have insurance (you should know this already) and what they currently pay. If they are currently insured, why are they looking into new coverage? We assume this is to save money, but frequently it's something else entirely.
Once you have this information, you say that you will analyze their situation, and present a few options for them to chose from. When you present them, you work specifically from the things they mentioned in the initial conversation, and how it addresses what their needs are.
Never sell to someones budget before you sell to their needs. If you do, you'll appear to be doing whatever is required to make the sale, rather than what is required to do the right thing for the client.
That said, in the end, you have to make sure they have a way to pay for the solution, or else it's a waste of time.
People buy comfort far more than they buy price. Don't believe me? Why do I drive a Jaguar rather than a YUGO? Why do most people drive SUV's rather than Honda Civic's? Why don't we all buy generic ketchup? In sales, the easiest argument to win is price, but it's probably the 3rd or 4th thing on a clients list. That said, price still has to be reasonable.
Dan
The approach is wrong.
Start the conversation with friendly chit-chat. Include in this what they do for a living, where they work, etc. Basically, make sure they have an income stream and it's above the average McDonald's hamburger flipper.
Then the tough part. Ask them why they want health insurance. Seriously. No, I mean really ask this question. Unlike what is in the media today, nobody needs health insurance to get healthcare, so why does someone really want health insurance. This will get you into a long conversation about various things they want in a health plan.
At the end, ask them how many times they have been to the doctor in the last 3 years. If, like me, they say none, then they probably don't want to pay an extra $50 a month to have unlimited office visits. If they have been twice, find out what was done (cold, broken leg, asthma, whatever). If they've been 12 times then they will want doctors visits, and probably not writable.
Then proceed to ask questions like 'if I could save you some money on your monthly premium, would you be willing to pay a higher fee to see the doctor?'. Work through some questions to get a sense of their tolerance for a deductible and office visit fees.
Then ask, if they currently have insurance (you should know this already) and what they currently pay. If they are currently insured, why are they looking into new coverage? We assume this is to save money, but frequently it's something else entirely.
Once you have this information, you say that you will analyze their situation, and present a few options for them to chose from. When you present them, you work specifically from the things they mentioned in the initial conversation, and how it addresses what their needs are.
Never sell to someones budget before you sell to their needs. If you do, you'll appear to be doing whatever is required to make the sale, rather than what is required to do the right thing for the client.
That said, in the end, you have to make sure they have a way to pay for the solution, or else it's a waste of time.
People buy comfort far more than they buy price. Don't believe me? Why do I drive a Jaguar rather than a YUGO? Why do most people drive SUV's rather than Honda Civic's? Why don't we all buy generic ketchup? In sales, the easiest argument to win is price, but it's probably the 3rd or 4th thing on a clients list. That said, price still has to be reasonable.
Dan
- 108
I Don't ASK for a budget
What I simply do is this:
1. I start with the most expensive plan and tell them that I wouldn't even recommend it because of the marginal dollars one could save in another way.
2. Then I move down the list usually the 2nd or 3rd favorite plan and stop and really talk about the benefits. If they balk because of the premium a lot - you move to the second one a little less and sit there explain benefits and look at them - human instinct is for them to talk.
3. STOP TALKING HERE. Let them scramble a min. You can see concern on their face and they'll say finally. Okay my budget is this or why this plan or that plan that's near the same price...
Now you know where they stand. Let them seem like they're in control.
Plus use your common sense. If your at their home. Do they have a lot of stuff. A benz or beemer in the parking lot? Do they have a plan over $800 already?
I NEVER ASK THEIR BUDGET.
What I simply do is this:
1. I start with the most expensive plan and tell them that I wouldn't even recommend it because of the marginal dollars one could save in another way.
2. Then I move down the list usually the 2nd or 3rd favorite plan and stop and really talk about the benefits. If they balk because of the premium a lot - you move to the second one a little less and sit there explain benefits and look at them - human instinct is for them to talk.
3. STOP TALKING HERE. Let them scramble a min. You can see concern on their face and they'll say finally. Okay my budget is this or why this plan or that plan that's near the same price...
Now you know where they stand. Let them seem like they're in control.
Plus use your common sense. If your at their home. Do they have a lot of stuff. A benz or beemer in the parking lot? Do they have a plan over $800 already?
I NEVER ASK THEIR BUDGET.
- 108
btw - the prior post was for Health Insurance.
Life Insurance I use a Financial EKG Method.
1. Story about where someone is now and how they aim for goals in the future.
2. Talks about the two ways to make money: people & money
3. Then we define retirement / lifestyle
4. Talk about their accumulation phase. Interest. Contribution. % of incomes and what happens in procrastination (this sometimes gets too scary and I leave it out)
5. Talk about the distribution phase
6. And lastly, if they think they have enough money and just want life insurance as protection I show what inflation does.
A 10 minute talk that will blow away people and you get their info without them really noticing.
Thank-You to New York Life for the insane amount of education!
(Just another tool in the toolbox)
Life Insurance I use a Financial EKG Method.
1. Story about where someone is now and how they aim for goals in the future.
2. Talks about the two ways to make money: people & money
3. Then we define retirement / lifestyle
4. Talk about their accumulation phase. Interest. Contribution. % of incomes and what happens in procrastination (this sometimes gets too scary and I leave it out)
5. Talk about the distribution phase
6. And lastly, if they think they have enough money and just want life insurance as protection I show what inflation does.
A 10 minute talk that will blow away people and you get their info without them really noticing.
Thank-You to New York Life for the insane amount of education!
(Just another tool in the toolbox)
Last edited:
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