As a successful DJ, poker player and insurance broker Chip Ervin really understands business and sales.
There are all kinds of gurus and marketing experts out there, all of whom have different opinions about pricing strategies for brokers.
Some are advocating being the cheapest. Some are promoting the idea of always being the most expensive.
The problem with being the cheapest broker in your area is that you cannot build and sustain long-term relationships with clients based on the cheapest price alone.
The customers who buy solely based on the lowest price are only loyal to the cheapest price. The moment one of your competitor brokers offers a price cheaper than yours, such customers will leave you.
Also, the way you attract clients has a great impact on how you will sell to them in the future. There will always be someone willing to offer a cheaper price, even if this price bankrupts them in the long run.
As a broker you want to sell quality, service, personal attention, and unique benefits.
The worst thing that can happen to an insurance broker is commoditization, being perceived as a service of low-importance that can be easily replaced.
If you are emphasizing cheap prices when selling your services, that’s the image that you invite. Most of the times underpricing sends the wrong message to your prospects. You may be thinking that you have created an attractive offer, while in reality you are generating skepticism because of the perception that quality products and services can’t be cheap.
As an insurance broker, Chip Ervin has always been committed to selling only quality policies that really benefit his clients.
Chip Ervin 