Why “Bidding” Your Insurance is the Worst Thing You Can Do.

 

In the insurance industry, “quoting” is the term used to describe an insurance agent who contacts his carriers on the customer’s behalf to see which company is most competitively priced. The Landscape Industry and other Contractor Industries refer to this as “bidding” and the reason is obvious.

When meeting with landscape contractors it is not uncommon that we will discuss how they go about bidding on a given project. I often hear how some projects are lost to those “fly-by-night” companies that are very cheap and illegitimate. The homeowner in this case does not care - just wants the lowest price at that time and then spends twice the amount 2 years later when their patio caves in.  Yes price is important, but how do you explain quality to a homeowner? How do you educate the homeowner? There’s more to building a patio than the number at the bottom of the proposal.

99% of Landscape Contractors can relate to this – but the funny thing is, when it’s time to look at insurance options. BOOM it’s “Bidding” time! “Here’s my information, please find the lowest price, if you need anything call Sandy, and she will get the information for you.”

Whether you are a Landscape Contractor trying to sell the quality of your work or an insurance agent trying to gain a new client – the same problems exist. The buyer is looking at price and does not take the time to be educated. When that homeowner moves away from the buying process and actually takes the time to educate themselves, their Landscaping Decision becomes much more sophisticated, they are likely focus more on quality, and more often than not they will save money in the long run.

The same situation is applicable in the insurance world. There are many contractors and EVEN OTHER AGENTS that do not understand the intricacies that affect insurance premiums. When a contractor takes the time to educate themselves, a couple things happen:

1. They will make a better decision.

2. They will save more money in the long run.

3. Their expenses go down, they become more competitive, and the success of their company grows.

These things do not happen when you “BID” your insurance. Maybe you get a lower price that year, but how does that stop your organization from leaking money year after year? Yes, when the season is rocking and rolling there is zero time to be educated about insurance, but don’t be like that cheap homeowner. Find the slow season, and invest the time with an insurance professional to make an educated decision regarding your insurance program. The alternative is a “caved – in” insurance program, and wasted money out the door. If a homeowner can learn something about building a patio that other contractors don’t understand then it is possible that contractors can learn something that their agent doesn't understand.

To learn more ways in which many Contractors may be “leaking” money year after year. Click Here   

 

 

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