Selling Value Versus Price
Selling value versus price is an important factor when you are trying to sell your insurance quote to a new or returning client. To be honest, some people are simply looking for just the cheapest rates but others can be convinced to stay with you even if they know they could receive a better deal elsewhere. So how do you keep these customers and sell to new ones? You need to change your focus to how you can value the customer and show them why they should be your customer.
Background of Price, Cost, and Value
Price is the amount paid for acquiring any product or service. Price is the dollar amount a customer see’s through either a quote or current premium. Price can be impacted by the overall economy, the customer themselves (accident or claim), and general increases due to supply and demand.
Cost is the amount incurred in producing and maintaining something. Cost is the dollar amount a producer see’s through the quoting process or knowing the customer’s history. Cost is generally based on factual knowledge.
Value is the utility of a good or service. Value is seen through a user’s perspective through opinion. It’s important to note that value is not calculated in terms of money.
How to Sell Value
Selling value might be one of the trickiest ways to sell but it will produce loyal clients. It’s recommended that to sell value you focus on the following areas:
- Be Choosey – yes, make sure the person you are quoting fits within your costs.
- Sell Strengths & Experiences – by showing your strengths and your experience, you can convince a buyer that they should stick with you because you know what you’re doing. You also should educate people on your company because it will help you stand out from the guy down the road.
- Confidence – instead of giving into every objection, answer it with why you’re different and what you bring to the market.
- Customer Service – this is one of the easier points selling value you have at your disposal. By having great customer service skills, you can help your clients feel at ease when they call you about a claim or question.