Legal & Professional services:: re-connecting pricing to cost, profit & value

Sell moreWhilst the article from which this extract is taken relates specifically to the legal profession, the truth of the matter is that this isn’t just an issue for lawyers…it’s a fact of life, the new norm for service industries!

The graphic on the right was aimed at Insurance Brokers but these are common issues.

I remember some of my earliest Economics lessons dealing with “elasticity of supply and demand”. We are now in the trough that, inevitably, followed an artificially prolonged series of peaks. As a result, the ‘Supply’ created to serve in the good times, when the revenue was there to sustain it, is now a surplus (excess capacity). The market has contracted, demand or, at least, budgets have fallen. Value and cost is under close scrutiny.

Suddenly “how well you know your client” is back at the top of the agenda. So are a few other questions:

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If insurance brokers aren’t "adding value" for SME’s what does your future look like?


Research recently undertaken by QBE makes for some worrying reading…that is, of course, assuming that there are still sufficient numbers of brokers with an appetite for the fight!

I sincerely hope that there is because YOU know that you do your job the way that it should be done. Don’t be shy tell people. Show them. If you do they will tell others because insurance customers are fed up with the mediocrity and hypocrisy that have become a trademark of our industry. Customers want and NEED to deal with people that they can trust.

ASK YOURSELF, how many people and organisations in our industry do YOU really trust!?

If you haven’t succumbed to the folly of a reliance upon unsustainable commissions…that are, probably still well below the levels paid to the “pile ‘em high” insurance salesmen masquerading as brokers…you still have a chance. BUT YOU DO NEED TO REALISE THAT, WHILST THIS IS A TIME OF GREAT CHANGE, MAKING A REALITY OF THE [HOLLOW] WORDS THAT HAVE BEEN ADOPTED AS THEIR OWN AND ABUSED BY THE SALESMEN, ADAPTING TO CHANGE AND LEARNING LESSONS FROM OTHER INDUSTRIES ARE “MUST DO’S”.


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