Presenter Doug Constable on Call for a Royal Commission into the Insolvency Industry

By March 11, 2019Doug Constable

In the insurance industry years ago they had the theory of how they created. Businesses by recruiting people. And so they would recruit people to sell. Insurance now they wouldn’t spend a lot of time on selling what they worked on theory was that if they recruited them I would sell on average of eight policies. Regardless of whether they stayed in the insurance industry or not about fifty per-cent of them would stay on and that’s how they start To to build a client base.

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The time they found that they had some sales people that Were very technically correct and knew the products backwards. That couldn’t sell and then I have other people who weren’t technically correct and sell on the emotion and people would buy products.

And so what tended to happen was as it developed and they needed a manager for a branch but they would say “ oh this that person is very technically correct and that they know the product so we will make them the manager” and I can remember that the time quite often come up there’s the better principle was the people rise to their own level and compliment.

One of the things’s always believed it didn’t make any difference you see people buy because of the functionality of it suits their emotional needs that’s the thing you always remember when we have got a product to sell. People buy it because an emotional Things that make a tangible product easier to sell is that you can feel it you can touch it and you can show it. One of the things that have happened over years and I’ve seen in businesses where they rely on price to sell their product. So the very much if you’re buying a house it’s cheaper than the next-door neighbour’s.

So when we’re marketing a product the emphasis really should be on creating ourselves to be able to present it in a way that is appealing to people and too often we go for the simple approach and sell on price and sell on discount and when you sell on discount you’re cutting down the profit margin of your business and You’re not able to give people same service because same properties and that’s one of the risks that we look at in business. Not just the war of profit and there’s been an overemphasis for a number of years on profit and price as opposed to quality and being able to marketing. It becomes a lot simpler for us to sell it on for us but really we do ourselves to see.