[Dale King]

A life insurance agent sits across the dining room table from a couple. The couple is middle class with two children ages 6 and 10. After conferring with the couple for nearly an hour, the agent has designed a plan to protect the family in the event of death of either the mother or father or both. The agent slides the proposal across the table to the parents. The parents glance at the proposal and see that the plan will cost them $50.00 a month. The couple hesitates and then glance at each other.

The sharp agent observes the hesitation. He anticipates an objection and calmly reaches into his pants pocket and pulls out 4 quarters, 5 dimes, 3 nickels and 2 pennies. He then puts the change on the table and says "The children's future will be protected in the event that a tragedy takes the life of one of you or both, for a little over a dollar a day or a cup of coffee." The couple smile at each other and asks "Where do we sign?"

The technique the salesman used to get the couple to sign is a classic sales technique called "Reduce to the Ridiculous" and is a very effective way to overcome the "monthly payment objection." The salesman reduced the payment to the ridiculous and the couple bought. The couple in this example was faced with a dilemma. To them, an extra $50.00 a month was a lot of money. That's $600.00 a year. But when the payment was reduced to a ridiculous $1.67 a day, the couple thought "Wait a minute, just $1.67 a day? We can do that! Where do we sign?"

So if this technique works so well, why not just jump right into it from the start, instead of quoting the monthly payment? Because this technique is your secret weapon - to be used only if you need it. The fact of the matter is, not everyone is going to balk at $50.00 a month.

In addition, using this technique only when you need it, will allow the customer to realize how reasonable the price really is.

In closing, think of different ways how you can use the "Reduce to the Ridiculous" technique in your own business. Not only will you help customers put price in its proper perspective, you will sell more as well.

(Insurance agent story used with permission of Raul Ramirez
Florida Health Insurance Plus)

Dale King