Wednesday, July 12, 2006

Selling Protection

So I received a letter the a few months back from my accountant offering 'Tax Audit Protection' - As you can see from the attached letter the investment would only cost $22 and protect me for upto $1100 worth of costs if I was audited. Not a bad insurance policy to take up at such a low price, I am sure a large number of this accountants clients took this offer up. For those of you who have read about Maslow's Hierarchy of Needs - Safety (Security/Protection) is very very important to people and one of our core needs.

Lets look at it from the Accountants point of view - Firstly from an cost balance of view. They will need to sell 50 'policies' for every audit they need to complete. I am not sure of the odds of people getting audited but I would almost bet it's less then 1 in 50.... Obviously the Accountant can look back trough their records to see what % occurred in the past, to make sure the bases are covered.

Secondly, what are they really selling? Well unlike most services accountants offer - they are not selling time? Generally you pay the account for their time to complete a BAS statement, File a return etc etc. As the $22 is not covering a direct effort on the accountants behalf, it's merely a opportunity/possibility. If the account sold 1000 of these to their large client base, that's $22,000 of additional income they would otherwise wouldn't have had.

How can you do the same in your business?
- An 'All Purpose Tradesman' could sell call-out protection; For $250 you are covered for 10 hours of work if/when needed in the next 12 months.
- An 'Auto-Mechanic' can offer a labour protection: If your car breaks-down in between scheduled services, $88 will cover the labour to fix the job.




1 Comments:

  • I like the ideas you are sparking with this post Pete. The only problem with a service like this is it is proactive rather than reactive. It's always harder to sell prevention compared to the cure.

    Keep up the good work!

    Yaro

    By Anonymous Yaro, at 11:07 PM  

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