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Anyone have any luck competing with the large agency?
If so what angles are you playing?
If so what angles are you playing?
Competing with the Large Agency
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So far this year I have been in the finals for 3 RFP's only to be beaten out by a large agency.
I really think if I had grey in my hair it would help.
I really think if I had grey in my hair it would help.
In 30 years I have seen many strange things, larger beating the smaller and smaller beating the larger. But as a rule of thumb, I would say that it might be because of the resources the larger agency can bring to the table and how they position themselves.
Think about what the client is looking for when the speak with sales people, to some extent it is the same from group to group; solution to their problem, expertise, resources to service/handle my group, can I get along with this sales person (personalities) and his/her ability solve my problems.
A larger agency has the ability to positon themselves as having many people/resources available to help the client. For example, they may bring in the account manager, a supervisor, etc. to illustrate the depth of their team.
Just a shot in the dark.
Think about what the client is looking for when the speak with sales people, to some extent it is the same from group to group; solution to their problem, expertise, resources to service/handle my group, can I get along with this sales person (personalities) and his/her ability solve my problems.
A larger agency has the ability to positon themselves as having many people/resources available to help the client. For example, they may bring in the account manager, a supervisor, etc. to illustrate the depth of their team.
Just a shot in the dark.
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The fact I make it to the finals is something but to continue to get beat by the larger agency is getting tough.
If I was not making it to the finals I would change my approach but I don't know.
These are not even huge deals. We are talking 60 lives.
If I was not making it to the finals I would change my approach but I don't know.
These are not even huge deals. We are talking 60 lives.
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More so called in house services. It's all smoke and mirrors by large agencies.
Health coach's in house. This is a BS one. The health coaches on staff at for agency is some young girl that slap a pedometer on the employee and say quit being fat.
Outfits that do Health, PC, & 401k. If a group is shopping 2 or all 3 it's tough.
I am dealing with owners in their late 50's or 60's and I losing to brokers that are the same age.
You hit on 3 big reasons:
- In-house (albeit BS) value-added services
- Multiple-line agencies
- Owners buying from someone similar to themselves
I admire you for being able to itemize the problem areas. If you can fill those, you may very well get the sale. I'm sure once they have you on their side they won't discriminate against you for being younger!
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Here's another idea to try - tell them what a large agency is going to tell them, and tell them why it's more efficient/cost effective with a small agency.
For instance, you have the same capabilities/services (COBRA, payroll services, HSA/HRA, etc.) providers they likely use - and they are your support staff with one person as a contact point. Simultaneously, they're going to be working with multiple contact points with a large agency, likely with 2-3 people depending upon the large agency - and not everyone will know what problems or issues the others are working on, therefore, you're more knowledgeable about their account and will take less time to get service issues "accomplished."
Also, you're there to focus on THEIR best interests, since there are fewer people to support at your agency, meaning that you're not going to sell them unnecessary solutions/services and have the ability to ensure you get them bottom dollar as your overhead is lower.
I've found those are two concerns that middle market businesses have.
For instance, you have the same capabilities/services (COBRA, payroll services, HSA/HRA, etc.) providers they likely use - and they are your support staff with one person as a contact point. Simultaneously, they're going to be working with multiple contact points with a large agency, likely with 2-3 people depending upon the large agency - and not everyone will know what problems or issues the others are working on, therefore, you're more knowledgeable about their account and will take less time to get service issues "accomplished."
Also, you're there to focus on THEIR best interests, since there are fewer people to support at your agency, meaning that you're not going to sell them unnecessary solutions/services and have the ability to ensure you get them bottom dollar as your overhead is lower.
I've found those are two concerns that middle market businesses have.
"Big" agencies will shuffle them off to service reps. The owner will deal with a rep, almost never the agent.
If the owner is comfortable with that you will have trouble making the sale. But if they want to deal direct with the expert, you are a better choice.
If the owner is comfortable with that you will have trouble making the sale. But if they want to deal direct with the expert, you are a better choice.
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