When Clients Go Nuts!

[Labman]

This is THE craziest business I have ever been in. People absolutely do not trust insurance companies nor agents.

Recently we ran a quote on a little five person company who had been with a regional carrier for the last five years or so. At the intitial meeting we explained to him we thought we could get him a much better rate, but that here in SC the insuranc company could come back and uprate him up to 65% depending on what went on in underwriting.

Well, yesterday we get the Coventry quote back and there is only a 18% up rate. Ecstatic I call the owner and told him to enjoy the evening that everything went well and he could expect a whopping savings of $1300 per month, with the same benefit or better than his old plan.

Instead of being excited, he said he thought it was too good to be true and needed to think things through overnite!! WTF??? As I write this I'm waiting to hear from him. People are nutz! I would have been over at the office signing the paper work that evening had it been me.

 

[xrac]

This is THE craziest business I have ever been in. People absolutely do not trust insurance companies nor agents.

Recently we ran a quote on a little five person company who had been with a regional carrier for the last five years or so. At the intitial meeting we explained to him we thought we could get him a much better rate, but that here in SC the insuranc company could come back and uprate him up to 65% depending on what went on in underwriting.

Well, yesterday we get the Coventry quote back and there is only a 18% up rate. Ecstatic I call the owner and told him to enjoy the evening that everything went well and he could expect a whopping savings of $1300 per month, with the same benefit or better than his old plan.

Instead of being excited, he said he thought it was too good to be true and needed to think things through overnite!! WTF??? As I write this I'm waiting to hear from him. People are nutz! I would have been over at the office signing the paper work that evening had it been me.

People don't trust agents or companies because they have been burned by some companies (think NASE) and there are plenty of agents who are either shysters or incompetent. In the business world you learn to be cautious if something looks too good. You might have had a where do I sign sale if you had had a savings of only $500 per month.

 

[CHUMPS FROM OXFORD]

One idea is to present two proposals. One with a savings of $1300 and the other with a savings of $500 (lower deductibles etc...)

Regardless...they are still nuts!

 

[Labman]

You are so right. This is the THIRD time in six months this has happened. What the hell am I suppose to do? People are afraid. We are not shysters, my partner has been in the business over 30 years in one location. I'm just dismayed and pretty damn depressed.

 

[xrac]

One idea is to present two proposals. One with a savings of $1300 and the other with a savings of $500 (lower deductibles etc...)

Regardless...they are still nuts!

I agree and "several butcher's aprons"

 

[CHUMPS FROM OXFORD]

Xrac...three green boxes to you. Oh, wait. We don't have them any more. In that case...150 leads from Insuranceleads.com.

 

[moonlightandmargaritas]

You are so right. This is the THIRD time in six months this has happened. What the hell am I suppose to do? People are afraid. We are not shysters, my partner has been in the business over 30 years in one location. I'm just dismayed and pretty damn depressed.

First of all, they're not "nuts", it's basic human nature!

When something costs much less in dollar terms, people are going to think that somehow the quality isn't equal - or they are getting much less.

It's the very reason that lines like, "I can help you save 32% on your insurance", AREN'T EFFECTIVE.

Of course they don't trust you, why should they?

What have you done to build their trust? Have you offered references, testimonials or a chance to talk with one of your clients who has enjoyed the benefit of similar results?

Quit blaming the potential clients, take responsibility, and learn the greatest sales skill of all - the ability to see things through their eyes.

 

[Crabcake Johnny]

I totally agree M&M. I think we can lose a LOT of business by saving people too much money. It doesn't make sense to anyone that we can save them "50%."

If an auto carrier called me today and said they could save me 50% I would not sign up on the spot. I'd dig into that policy looking for the other shoe to drop.

And these are the same fears out client's have. They're thinking "hmmm, if I'm paying $1,300 less that also means I'm getting $1,3000 less in benefits....but where."

They fear switching, going in for a procedure and being told "Oh...THAT procedure isn't covered sir."

This makes sense to all of us. If you saw 10 HDTV's all at $2,000 then one claiming to be "identical" at $800 you'd likely avoid it.

This also exposes the myth that people are looking for the lowest price. There is never a single case when anyone's making a large purchase then they're looking for the lowest price.

 

[Labman]

I understand what you guys are saying. I've come to know this guy pretty well, even referred some business over to him etc.etc. Sometimes, you have to trust people and I guess for some reason he is skeptical of me and the product.

In my view I could have been a crook and not prepped him for a potential uprate of 65%. Then, if we would have got max rated he could have came back and said we did a bait and switch. Some days you just can't win.

 

[Justin Bilyj]

Good post john