Scott Simmonds - Insurance Newsletter

Helping Insurance Experts Build Great Businesses
www.ICMentor.com

May, 2007

Work Only With Economic Buyers

In the consulting proposal process you must deal with decision makers. You can’t move forward without dealing with the right people. Failure and frustration come when you fail to flush out the real buyer of your services in an organization.

Economic buyers are those who are authorized to sign the contract to move forward. If you’re dealing with gatekeepers, false buyers, or assistants you’re wasting your time.

Don’t negotiate with anyone except the economic buyer. Here are some questions to ask to determine if you’re working with the right people in an organization:

“Who, besides yourself, must approve this project?”
“If we reach agreement are you ready to approve the project?”
“Is this project a part of your budget or will it impact other departments?”
“Who has ultimate approval authority on projects like this?”

In companies of less than 100 employees the economic buyer is almost always the president or owner. In companies of 100 to 500 employees the CFO may or may not approve insurance projects. Over 500 employees and you’ll probably deal with a risk manager or the CFO.

Contrary to popular belief, the human resources department rarely has the ability to approve insurance consulting projects. Double and triple check if you’re dealing with the HR manager. Make sure you are working with decision makers.

Nonprofits are a world unto themselves. Some executive directors have unlimited authority. Others can't buy pencils without two committee meetings and a board resolution.

Practice this statement in front of your mirror, “Mr. Gatekeeper, I can't meet with you unless all the decision makers are present. It’s important to the success of this project that I’m able to gain a complete understanding of the issues and problems you face. I can’t do that unless they are in the room when we meet.”

Failure to include the economic buyer in the formation of a project is the single biggest cause of failure in any insurance consulting proposal. Avoid dealing with gatekeepers and false buyers and you’ll save yourself a great deal of trouble. You’ll close more business too.

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Scott Simmonds, CPCU, ARM
Insurance Consulting
Phone 207-284-0085
Fax 802-992-4027
Scott@ScottSimmonds.com
www.ScottSimmonds.com

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