Do You Drive Enough Value To Justify Your Insurance Price? Do You Fear Your Insurance Price?
Whether you own an insurance agency or you’re an employee, it’s natural to have fears and concerns. But if there’s one thing you shouldn’t fear, it’s insurance rates. And yet, we see this fear of insurance rates happen all of the time. Today we’re talking about value versus price, and to do so, we’re going to pose the question: do you drive enough value to justify your insurance price?
“There’s a reason why Starbucks sells $7 coffees and doesn’t seem to be in any financial difficulty around it. When we get into a situation about value, we see why we’re spending the money that we are on something.”
People have no problem spending more money on something that is worth the value. Think about how Starbucks is successful selling $7 cups of coffee. So, do you drive enough value to justify your insurance price? Here’s what you need to consider:
Independent agents aren’t known for being the cheapest option
If a client wants the cheapest insurance out there, then independent agents probably aren’t the way to go. Most of us are not going to put them at a state minimum, and at the end of the day, we want to get them the right coverage. You’re not necessarily there to be the cheapest option in town.
People make assumptions and decisions on price
When people don’t understand the value, they’re going to make assumptions and decisions based on price alone. And insurance is incredibly complicated, so it’s not uncommon for people to lean on price because they don’t understand it. That’s why our job is to educate our clients more than anything else.
Know your worth
Here’s the thing: we think that you’re worth paying for. You have to believe that you and your agency are so good that it’s worth paying more for. Going back to Starbucks, they believe they’re so good that those other coffees are nothing compared to them. You need to get rid of the idea that people only care about price. You can also acknowledge your worth by doing more than just processing transactions. If you’re just taking a payment, you’re not showing your value.
People are usually interested in getting the best, not the cheapest. But if they don’t understand the product, they’re going to make a decision based on price. That’s why it’s your job to educate your customers, so they know that you’re worth paying for.
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