Negotiate Personal Lines Insurance #3

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Negotiate your way to greater PL sales.  We’ve discussed the need to negotiate in your sales and use the power of multiple price points and companies.  We’ve given a handful of tips that buyers use and sellers can use.  This post will give further tips on becoming better at negotiating with your customers.

4.  The Nibble.  The buyer’s tactic on this would be to ask for more, if the price is not negotiable.  A good example is when you go to a mechanic to have tires changed and after you and he agree to terms you ask him to throw in a free oil change.  As a seller this is a helpful tactic that you can use if you can not find any lower price.  Give other options that don’t cost you anything such as bill plans, help with house inventories, free analysis of other risk areas.  It is a good idea to come up with other features that the agency can do for customers that you can through into the negotiation to create value without costing the agency much money.

5.  Deadlines.  This works great for sellers.  Create a deadline.  This quote is only good for a limited time (which is true for most companies).  Most carriers only honor a quote for 30 days.  Others give advanced quoting discounts which can disappear if the customer does not act.

6.  Walkout.  When a customer keeps pushing for lower premiums or other concessions, you may need to say: “I am sorry, I would like you as a customer but it appears it is not the right time.”  If the customer really walks away, you did not burn any bridges and you can resolicit without any hard feelings.  It may put an end to the back and forth and force a commitment.

7.  Assumptive close.  We all do this.  “Here’s the rate, do you want to may this effective on the 15th or 30th?”  “Here’s the rate, are you more comfortable paying in full or EFT?”  Assume they are buying and close it.  Years ago when working for Progressive, we did mystery shopping where we would call our agents and ask for a quote.  Primarily we were looking to understand how they positioned Progressive in the agency, but we learned a lot more.  Soon we developed a checklist of sales tactics and strategies the quoter used.  After thousands of calls made over several years, only 1% ever asked for the sale.  As an insurance person, just doing this will make you better than most of your competitors.

There’s more to come. Look for part #4 soon.  For more detail check out the source for these thoughts: Negotiation Boot Camp: How to Resolve Conflict, Satisfy Customers, and Make Better Deals

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