Nothing happens until somebody sells something. To make sales happen, IMMS.com Key Sales Consultant Randy Schwantz has created a comprehensive series of 43 Producer Success Lessons. Used singly or in combination, these powerful tools can help your producers build their skills and grow their sales.
When I was a little kid, one of my friends got a bike from a department store. It was really cool. It had a banana seat, high-rise handle bars, five-speed shifter, everything. There was only one problem. It wasn't a Schwinn.
Schwinn bicycles were, and are, very well made. They also cost a lot more than a bike from a department store. My friend's bike cost about $25, a fair price in 1965. A Schwinn cost about $75 - outrageous!
Or was it?
My friend had to replace the seat on his bike because the support broke. He went through two chains. The handle bars got bent in a crash landing. Within two years, the department-store bike became unusable. Including the purchase price, it had cost about $40 over those two years - roughly $20 per year.
My cousin got a Schwinn in 1965. He still has it. I guess his parents paid about $75 for it in 1965. I don't think he spent a dime on it for the next 25 years. His cost is about $3 per year. Hmmm - a department-store bike for $20 per year or a Schwinn for $3. Which do you think had the lower price?
That's the point of this lesson. Price is largely irrelevant - it's the item's value that matters. Your job is to help your clients see the difference.
The Value of the Package
I often hear Bobby Belargen on the radio. He runs a big Lincoln dealership in Dallas, and in his ads he talks about the dealership's family atmosphere. 'If you come into Belargen Lincoln, ask for my me. Or my dad. Or my mom. Or my sister Amy,' says Bobby.
Belargen Lincoln won't sell you a Lincoln vehicle. They wouldn't hear of it. You can, however, buy a Belargen Lincoln. That's different from a plain old Lincoln. If you buy a Belargen Lincoln, you get the whole package - Mom, Dad, Amy, and Bobby. You get friendly service. You get a smile and a cup of coffee at the door. The whole atmosphere is so un-dealership that I wonder how anyone could ever put up with the alternative.
Ford, which manufactures Lincoln, is a big company, so you can get a Lincoln anywhere. The same is true of insurance - you can get it anywhere. What makes the difference? You do! So your new phrase is: 'I'm the value added.'
Why Pay More for Similar Products?
Why would you buy a Lincoln from Belargen if you could get it for less somewhere else? It's the same car. You're not getting additional options. So it must be some sort of perception - the perception that the Belargen Lincoln is more valuable than the other Lincoln.
You expect more from the service department at the Belargen dealership. You expect more from the salesperson. What you're actually buying is the belief that if something happens to your car, the salesperson will fight for you, the service department will do a super job, and the dealership will lend you a car while yours is out of service. You're counting on the relationship. And that value added is worth the extra money.
Insurance is the same. Why would someone pay more to do business with you when they can get the same coverage from another carrier's agent for less money? With you they get personal risk management - a genuine understanding of their needs. They get a secure feeling that they're absolutely covered if something does go wrong,.
People usually think they're all set, that they have everything they need. So how do you create this perception of value? Here's an example:
Changing Perceptions
Imagine you're calling an executive about an appointment to do a personal risk management review.
Prospect: We're happy with our current insurance program.
Salesperson: Good. So when your current agent delivered your renewal policy and went over it in detail with you, were you happy with the explanations you got?
Prospect: Well, my agent didn't actually deliver the policy ... .
Salesperson: Oh, so when they called you to make sure the policy arrived in the mail and you discussed the details over the phone, did you find any areas that you needed additional information about?
Prospect: Well, they didn't call me either.
Salesperson: Oh, OK - no big deal - so you're buying insurance by mail order. And that's no problem, because you never have any claims, right?
Prospect: Right.
Salesperson: And you never will.
Prospect: Well, we could.
Salesperson: Suppose you did. What would you want to have happen?
Prospect: We'd be covered.
Salesperson: And if you weren't - then what?
Prospect: I guess we'd be in trouble.
Salesperson: I don't suppose it makes sense to invite me over and have me look at your policies just to make sure you are covered, would it?
Prospect: I guess so.
Salesperson: OK, fine. Get out your calendar.
Prospect: OK, I'm looking at it.
Salesperson: What day are you looking at?
Prospect: Thursday.
Salesperson: I'm sorry, I have a couple of major renewals I have to see - would you be kind enough to pick another day?
Prospect: Sure, how about next Tuesday?
Salesperson: That works for me - what time?
Prospect: Three.
Salesperson: See you then.We got the appointment, and we never mentioned quotes, price, or how many markets we have. The only thing we focused on was the prospect's problem. So of course they wanted to see us - everyone else just wants to fax them quotes.
EXERCISE
Tape your side only of the next few phone calls you make, then listen to the tape. How often do you mention price, quotes, and markets? How often do you mention client problems?