Appointment Process

[Rearden]

I follow the Tim Winders method of "selling the premium" for a couple reasons.

1) I pre-qualify out the "I'm broke" objection.
2) I pre-qualify whether or not they are really worth doing a full presentation to.
3) Unlike NFL's excoriation of the technique, I use it not to gauge them so bad to get a chargeback, but to determine truly what they are comfortable, and how to pitch the ultimate offer based on their affordability (selling "Something's Better Than Nothing" approach), or if I can "surprise" them by telling them how less expensive what they want actually is.

However, I don't have balls big enough to ask for $200 a month -- I start with a price range that meets the amount of coverage the prospect ideally wants, based on what they have already told me.

Personally, I would rather knock out the tire kickers, dead beats, and broke mofos up front than pitch them, to find out they have no moola, and resort to groveling to get the business.

 

[Gooner]

I follow the Tim Winders method of "selling the premium" for a couple reasons.

1) I pre-qualify out the "I'm broke" objection.
2) I pre-qualify whether or not they are really worth doing a full presentation to.
3) Unlike NFL's excoriation of the technique, I use it not to gauge them so bad to get a chargeback, but to determine truly what they are comfortable, and how to pitch the ultimate offer based on their affordability (selling "Something's Better Than Nothing" approach), or if I can "surprise" them by telling them how less expensive what they want actually is.

However, I don't have balls big enough to ask for $200 a month -- I start with a price range that meets the amount of coverage the prospect ideally wants, based on what they have already told me.

Personally, I would rather knock out the tire kickers, dead beats, and broke mofos up front than pitch them, to find out they have no moola, and resort to groveling to get the business.

I agree with all of this.

However, before i walk into a house I always run a quick NT & T, $10k quote on the prospect to have an idea of what first day coverage will be for them. I have started out at $200, but I usually gauge it by the house I'm in. Usually start around $100-$150. I also don't continually go down. If I start at 100 and they say no, I ask them what they were thinking would be affordable and go from there. If I start at 200, I'd drop one more time and when they say no...I ask them the same question.

One guy said $40/mo, so I quoted him $5k at $44...he pulled the I need to talk to my son...so I dropped it to $38 and the objection went away and we closed the deal. It is not a perfect system, but I don't think anything is...works for me though.

 

[rizzle]

A strategy that seems most comfortable and effective for the clients is to draw out from them the amount they are comfortable spending.

keeping it simple like that maybe take this approach:
after reiterating what they told me their needs were I would ask them based on those needs:
On a weekly basis what could you put aside for a plan.
Low - an amount you would not notice
med - something you would budget for
high - something you would budget and reallocate for

now that I have a dollar commitment I would see what they qualify for and explain what that amount would do for them and go from there.

you see anywhere I could get snagged up here?

thanks for all the responses

 

[Gooner]

keeping it simple like that maybe take this approach:
after reiterating what they told me their needs were I would ask them based on those needs:
On a weekly basis what could you put aside for a plan.
Low - an amount you would not notice
med - something you would budget for
high - something you would budget and reallocate for

now that I have a dollar commitment I would see what they qualify for and explain what that amount would do for them and go from there.

you see anywhere I could get snagged up here?

thanks for all the responses

I think talking budgets is way beyond a lot of our clients scope. ..especially on the lower income side. I think I'd stick with 3 premium amounts (or ranges $30-50, $50-70 & $70-100..John Galt has a lot of success this way) or do the money presentation.

 

[Tom from Denver]

What I've learned in using the "money presentation" is that I have to invest a few minutes getting to know them, and in doing my commercial on me. Helping them to lower their guard so I can help them.

While $200 a month is high for an individual on disability, it's pretty reasonable for a couple that has a small to medium pension income in addition to social security. If the client is single and has a dual income stream, I generally start with $100 to $125 a month.

If the couple or individual is on a much more limited income, then of course you're going to start lower.

The idea here is not to sell them more than they are comfortable with. It's also not to sell them less than they'll need in ten or twenty years. The point is to have them tell me what they are comfortable with - then never exceed that nber by even one cent.

The initial amount can't be too high to insult them, but you don't want to be less than they are wanting to spend.

Just as in showing the three choices, they have to sense your looking to help them, not to get all of their money.

As to chargebacks, I have heard JD share how high his own is using the choices strategy, and how high Tim W's was at EFES.

Find and use a style your comfortable with.

Sent from my iPhone

 

[rizzle]

I think talking budgets is way beyond a lot of our clients scope. ..especially on the lower income side.

yeah.. I'm tending to agree with this. probably notice any amount and probably nothing there to reallocate anyway.

 

[jerry176]

I am trying to figure out how a person on a fixed income, probably just SS, can afford $125 monthly premium.

I guess they own their home, and their bills are small.

 

[Norwayguy]

I am trying to figure out how a person on a fixed income, probably just SS, can afford $125 monthly premium.

I guess they own their home, and their bills are small.

First most people are on a "Fixed Income" do they just have social security or are you assuming they may also have a pension and some savings I remember back when I was with Bankers (yeah I know) and was riding with my USM and we were in this run down house people wearing threadbare clothes and after striking out on a med Supp sale the other agent just threw out do you have some cash lieing around you wanted to protect and earn more interest on. The husband perked up and asked how much we would need and I forget if the minimum was 2 or 5 grand and the guy says wait here runs to another room and comes back with 10 grand in cash opened my eyes to not prejudge too much.

 

[indiana260]

keeping it simple like that maybe take this approach:
after reiterating what they told me their needs were I would ask them based on those needs:
On a weekly basis what could you put aside for a plan.
Low - an amount you would not notice
med - something you would budget for
high - something you would budget and reallocate for

now that I have a dollar commitment I would see what they qualify for and explain what that amount would do for them and go from there.

you see anywhere I could get snagged up here?

thanks for all the responses

Don't ask what v they can set aside on a weekly basis. Most only get one check a month.

 

[nfl72]

Payment buyers are some of the biggest laydown buyers in the world, no matter what they are buying. Years ago when I was an F&I manager I took a turn on a young kid and his pregnant wife. The kid was a smart ass and just kind of rubbed me the wrong way. He was buying a used Dodge pick up, 2wd, roll up windows and a small 4 cycle engine. I asked him where he needed his payments to be and he said no more than $150. I did a quick check and said we had a major problem as they were going to be much higher than that. He asked how high they would be and I threw out a number of $425.00. He asked if that was the best I could do and I did a few more calculations and said I could get him at $375.00. He said ok and bought the truck and the payment. I almost fell out of my chair!


The bottom line is we never know for sure what they will close at. But I have just found that when selling FE, if I listen to what they have to say and do what I can to keep them where they need to be, I get less chargebacks and more referrals.