MRL #051- To Quote Or Not To Quote (That Is The Question)

Earlier this week I posted the following brilliant take on LinkedIn:

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“RULE #1: NO quoting in your first 3 years - Sell by BORs ONLY

If I was running a Producer Development Program I would do a few things differently.

The first would be implementing the rule above.

This constraint would force New Producers to:

a) Dramatically increase volume of prospecting

b) Sell on value not price

No more tying up time and agency resources chasing tire-kickers and half-baked prospects.

Quoting should be viewed as privilege, and you have to earn it.”

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As expected, opinions flew in from all directions.

Many agreed.

Many did not.

My favorite of all the nay-sayers had the following to say:

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“Nothing could be farther from reality.

But I still like most of your content.

Again, as a new producer, as I was over a decade ago, following this advice is a recipe for failure.

Again, I love your content so far. Keep it up.”

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Although it’s all the rage these days, we ain’t in the business of poo-pooing dissenting ideas.

All opinions are welcome, whether we agree with them or not.

So, instead of going HAM in the comment section I figured I’d use this week’s newsletter to reintroduce you to our philosophy on quoting.

Hint: In most cases, we’re not a fan.

We’ve covered why in different newsletters and podcast episodes before.

But, as Samuel Johnson said…

“We need to be reminded more than we need to be instructed.”

So, here’s our 2 big reasons…

Reason #1: “The Science”

When two or more agents are quoting:

• Agent #1 (the incumbent) wins 90% of the time

• Agent #2 wins 7% of the time

• Agent #3-? win a combined 3% of the time

I'm no math wiz, but according to this stat, when quoting, you’re going to loose 9 times out of 10 (or more depending on how many agents are involved).

Maybe you like those odds.

Me? I ain’t a fan.

That’s a butt load of work for very little in return.

Reason #2: Live By Price Die By Price

When you agree to quote you’re agreeing to be judged on price, not value.

Think about it…

By it’s very definition “quoting” means…

“To provide someone with an estimated price for a product or service.”

You may think you can get in there and win the deal another way like service, or coverage…

But 9 out of 10 times in the insured’s mind “quote” is synonymous with price.

And when you live by price, you die by price.

Just like their office supply guy, or their vending machine guy, when someone else walks in with a better price…

You’re toast.

Ok, now that we’ve covered why it’s not usually in your best interest to quote, next let’s discuss…

Is It Ever Okay To Quote?

Of course.

There are exceptions to every rule.

Here are a few scenarios when it probably makes sense:

1. The incumbent is a captive agent

2. You get your choice of the markets

3. You have an exclusive product 

If you’ve got one or more of the above your chances increase dramatically.

And that really is the point of all this…

Putting Yourself In a Position To Succeed

This industry is hard enough.

No need to make it harder with endless amounts of paperwork, chasing half baked prospects, and tracking down loss runs…

Only to win once in a blue moon.

Instead, pick your spots.

Do the hard work on the front end…

Find the right prospects who will value you and your time.

And spend your energy there.

I think you’ll be pleasantly surprised not only at the results, but how much easier the job actually becomes.

If that tickles your fancy The Producer Playbook can show you how.

Ok, that’s enough out of me.

Time to go catch up on a few more episodes of Band of Brothers before Monday gets here.

(If you don’t have a Veterans Day tradition in your family, I highly recommend adopting this one.)

Blessings and gratitude to all who served.

Catch you next Sunday.

Kick ass take names, 

Max “Proud To Be An American” Revenue

P.S.

If you found this letter helpful… there are 3 other ways we can help you:

1. The Producer Playbook- The Step-By-Step Guide To Building A $1,000,000 Book of Business (From Scratch)

2. The Max Revenue Show- Our weekly podcast (available just about everywhere).

3. The Max Revenue Channel on YouTube- Weekly videos from Micah “The Zen Master of Commercial Insurance” Salas, including his new series “Diary of a New Producer.