Recently I ran into a group of shoppers that defy the current trend in which buyers flock to the internet searching for the lowest price. Despite sticker prices that were 3 – 4 times lower, a wider range of products and free delivery being offered, they opted for something different. These shoppers not only were billed more for their purchase, they willingly chose to pay more than asked because of the expertise and service the received with the sale.
What strange country was I visiting?
Actually it was Dave’s Town Club, a tavern in Delano, MN.
Day after day in cities all over Minnesota, customers line up at similar taverns to pay many times over what they could buy a beer for at the local liquor off sale. Not only that, customers did that even though off sales offer by far, a much wider range of products that could later be consumed at your home in a comfortable chair with easy access to a refrigerator full of snacks.
Why do they do it? Is it the cleanliness of the bar? Is it the excellent cuisine? Perhaps it’s the fragrant smell of stale beer lingering through-out the century old building! Maybe it’s the excitement of driving home after two beers and noticing a state trooper in the rear view mirror.
The answer is Dave; actually Dave and his staff. People willingly pay more to have a beer brought to their table in this place. In fact, not only do they pay more, they really don’t look at the price until later in the evening when they settle up the tab. How much a drink costs is not a factor, people don’t mind paying a fair price.
Some come for the excitement, others come for companionship(?), some come out just for the event, but I guarantee you, none came because Dave has the cheapest price. People assume the price is fair because they know Dave. Dave is a good guy who lives in town, has kids in the local school, give’s money to the local scouts and marches in the 4th of July Parade. Dave is one of us.
So why is it different when it comes to insurance? The answer is – it isn’t! People will buy insurance locally for many of the same reasons. Price isn’t the most important factor in selling insurance, you are.
A customer may come in your door and list price as one of the reasons for shopping, but unless you make it an issue, the coverage you offer and the explanations you give will have much more to do with the sale than any price discussed. People assume the price will be fair, because they know you and your kids. They’ve seen you at the business expo, and they’ve seen you carrying Girl Scout cookies. You are a good guy (gal)
Who knows they may see you at Dave’s.