Cindy Donaldson, Marketing Director - Founders Insurance Group
The “P” word – “Price”
– I’m tired of it. Now don’t get me wrong – I’m one thrifty person. I love a good bargain, tend to buy things only on sale and with a coupon but I won’t sacrifice quality. I will buy from someone local before I shop on the internet – if I can. I will buy from a local mom and pop before a big box – if I can. I love to shop at farmers markets, local craft fairs and farms – but sometimes you have to go big. I get it – but again, I won’t sacrifice quality. 
When it comes to insurance – people are VERY focused on price these days. Why? Because the magical world of advertising and media has brainwashed us all into thinking that price is the end all when buying insurance. Joe Lipski, one of our personal lines producers here at Founders took a look at a friend of mine’s policies –Joe found he was paying a decent price BUT he was very under-insured on all fronts. Founders proposed him new coverages – 50% higher on his home, increased his auto and motorcycle coverages as well – and yes we saved him $400 to boot. A perfect sales story.
The message here isn’t the $400 savings – although he appreciated that. We could have saved him a lot more giving him the exact coverages he had – but we wouldn’t have done our jobs. Our job is to counsel individuals on the best coverage for their unique risks. We wanted to make sure he was protected in case of a loss – and now he is, with $400 extra in his pocket.
So next time you hear an ad touting “saving x amount of dollars on your insurance” – remember, it’s not about the “P” word “Price” it’s about the “P” word “Protecting” what you value most – your health, your home, your business and your family. At Founders: We Understand Priceless. It’s what we do.
Do me a favor – take out your insurance policies and bring them to your local independent insurance agent . If you are local – bring them to Founders. You might just be surprised and learn a few things.
Cheers!
Cindy Donaldson, Thrifty but Smart
Team Founders at the NW CT Chamber of Commerce Table Top Expo
Founders Insurance Group was part of the NW CT Chamber of Commerce Table Top Expo this week in Torrington – it was a grand success for us. Why? Because we “worked it”! www.nwctchamberofcommerce.org
In my previous life, I often heard people complain that chamber memberships didn’t offer them anything, that going to trade shows were a waste of time and that networking after hours were glorified pick up spots for the singles in the group or the unhappily married. I would always smile and ask: “So tell me – what did you give in order to receive – what did you contribute to the chamber? They would typically stare at me, shrug and say “I paid my dues and I didn’t get a damn thing back.”
You see – networking is just that – a network of people exchanging ideas, information, leads and more. In order for a company to get anything out of a networking group they must first put forth effort!
Our Table Top Expo was a success because our two young sales guys – Joe Lipski and Doug Grieco – dressed up in their best duds, created a booth that drew people in and most importantly worked the crowd! They stood, they
Doug Grieco (L) and Joe Lipski (R)
didn’t sit, in front of their display and talked to people as they walked by. Joe and Doug made sure everyone at that Expo was carrying a Founders Insurance Group tote bag with all of our information in it. They also were not afraid to ask for names and contact information, they weren’t afraid to tell people what a great company Founders is, nor were they afraid to ask for the appointment and/or the sale. Great young sales guys we have here!
They came into the office this morning with a slew of leads. I’m confident some will turn into future Founders clients.
Now…if they just sat behind their table that donned a few non-descript flyers and didn’t say anything, they would have come home empty handed and told me the night was a waste of time. Tsk tsk to all those sitters.
The moral of the story: Work it! Don’t wait for people to find you – go find the people! We love chamber memberships and get a lot from them – but we also invest time by attending events, joining committees and getting to know fellow members.
Have a great weekend!
Cheers
Cindy Donaldson – Director of Marketing, Founders Insurance Group, Inc.
Chris Garlasco, Owner & Managing Partner - Founders Insurance Group
The following blog entry is one of several that I wrote a while back, but for one reason or another, I decided not to post. I have decided to “dust” this one off as a result of America’s health insurance debate. I am sure you can guess what side that I am on, but rather than speak to the issue directly as everyone with a bully pulpit has done, I want to talk, in very simplistic terms, as to how insurance actually works for you, the consumer. I believe that understanding the very basic premise of insurance is
what is missing from the debate. It really doesn’t matter whether the private sector or the public sector runs the health insurance world; the principle of insurance remains unchanged.
I have a “newbie” in one of our offices that has plunged into the insurance from another sales profession. While I was courting this person to join our firm, I was asked to explain our seemingly complex world in a few sentences. Anyone that knows me is aware of the fact that a “few sentences” for a guy like me is nearly impossible. What follows is my simple explanation:
The insurance company is like a giant cup. The company collects money from all of its policy holders and places it in the cup. The money is then taken back out of the cup in the form of claim payments and company expenses. Any money that is left over is profit. It sounds simple and it actually is, somewhat.
There are a number of other factors that affect the “cup” but in laymen’s terms, the “cup” is the name of the game. If the amount that has to leave the cup is in danger of exceeding what is heading into the cup, the rates go up. Lots of factors affect the need to raise rates. The most common one is simple: losses. If the cost of the losses grows beyond a certain point, more premiums need to be collected. Another reason could be regulatory issues. If the company needs to keep more money in reserve, again rates are affected. Rising expenses in the form of employees, taxes, and other overhead can also affect rates. There is a fairly lengthy list, but you get the idea.
Our “newbie” then asked the question that is on everyone’s mind, “how about raising rates simply to increase profit?” I answered the question with another question, “How about competition?” Competition is the great equalizer. Companies are motivated to control expenses and excessive losses in order to gain profit. Raising rates for the sake of increasing profit generally leads to customers heading for the exits, thus defeating the purpose of the rate increase. When a company is faced with taking a large rate increase rather than an inflationary one, there is generally a problem and insurance companies know that this presents a danger to keeping their existing customer base. The exception to this is when there is a problem throughout the industry and the competition is also faced with large rate increases. So remember, cup in, cup out.
The final question is does the government understand the principle of insurance? We are hearing lots of numbers thrown around, but none of them make any sense from an insurance standpoint. It’s a lot of fuzzy math that appears to be devoid of recognized insurance principles. If those numbers can’t be placed into a sustaining actuarial model, the end result will be similar to the financial failure that currently is today’s Medicare. As for competition, there are more than enough companies to provide competition, but the government must allow them to cross state lines as they do with Auto, Home and Life insurance. Insurance is a product that was created to help us afford another product that we normally cannot afford. In this case, it’s the cost of health care. True reform will address the cost of the care or we are simply placing a band aid on a dysfunctional system. The two thousand page document that the House has just released looks nothing like insurance.
Chris Garlasco
Cindy Donaldson, Marketing Director - Founders Insurance Group
I’m an avid reader of Chris Brogan’s blog (www.chrisbrogan.com), and I also subscribe to his e-newsletter. Why? Because Chris doesn’t just pontificate and give useless information – he always gives me food for thought and makes me think about my life, my job, my career – what I’m doing right and what I’m losing the battle with.
In his latest e-newsletter he talked about goal setting. As many of you know – I love Napoleon Hill’s guru line “A goal is a dream with a deadline” but Chris took it a bit further and perhaps gave me one of those light bulb moments in life.
Chris says “In a word, your only competition (in my opinion – that’s Chris speaking) is you”. Isn’t that
true? When it comes right down to it you and only you have control of the “stuff” that gets in the way. You and only you allow the negativity to slow you down. You and only you procrastinate, avoid and sidestep what you need to do to get where you need to be. Chris is right – the only competition you have is you. It’s the reason I haven’t trained for the ½ marathon I’ve been “meaning” to do, it’s the reason I haven’t lost the remaining weight I want to lose, it’s the reason that so many things are still on my “to-do” list undone. I am my own competition. Success is such a state of mind.
“…it’s great to look outside yourself for inspiration, support, for motivation. But when you look outside yourself for a measure of what you hope to become, that’s when it gets messy,” says Chris.
Remember – only YOU can change you, and only YOU really knows what you want to become and what you need to do to get to your goals. Do you really want to be someone else or do you want to be a better you?
The last piece of Chris advice – and this is a good one –”Understand when to comply and when not to comply is a huge secret to becoming more successful.” In other words – fight the fights that are worth fighting and let go of the things you have no control over. Learn to live in the moment, enjoy the little things in life and don’t let the minutia bog you down.
Take this advice and use it at work and at home – amazing things will begin to happen.
What are you waiting for?
Cheers!
Chris Garlasco, Owner & Managing Partner - Founders Insurance Group
When my business partner Dennis Dressel decided that we needed a bell in our offices to highlight our sales activity, I must admit I thought that it was kind of, well, hokey. His idea, although not a new one is a simple one, every time a new sale is made, the person that made the sale would get to ring the bell. He took great pride in finding the right bell and when it came in I was surprised that it was quite heavy and of good quality. It was decided that addition to the commission, we would tape a $5 bill to the bell to be peeled off by the “ringer” for good measure.
Now, this is not just some small tea bell, or a push button bell, but a bell that when rung properly can be heard throughout our office like a thunder strike. Our young sales people, to my surprise, became quite competitive as to who was going to ring the bell first. Our service department staff wasn’t quite feeling the adrenaline rush and some of them thought that the whole thing was just silly.
Within a day, Joe Lipski, one of our personal line sales people rang the bell and everyone stopped and clapped! Dennis’ idea wasn’t turning out to be hokey after all. Now that we have a lot of bell ringing going on, it’s interesting to note each person’s approach to the bell. In our “Main Street” personal lines service unit, Jemeli Grocki, a generally
quiet and somewhat shy Account Manager was the first in her department to ring the bell, which was followed by her offering me a “high five “pointing out that she was the first in her department to ring the bell! Some of our team members ring it loud and ring it proud. Some hope that it doesn’t make too much noise and wait until they think that no one is around. Some of our “more seasoned” staff member could be heard singing Anita Ward’s 70’s Disco hit “You can ring my bell!” http://www.youtube.com/watch?v=kJSW7KiBfbM
In many of my blogs, I have talked about our value proposition and the need for us to make sure that we are living that proposition with our clients. The Founders Group, like many independent agencies has always been a service organization. We will look for ways to continue to improve upon that, but we are in the business of selling insurance. Culturally, we have to make that change so that it flows through the entire organization. It’s a lot of baby steps, but we are getting there. We now recognize that its lots of little things that make for a great organization. It’s a game of inches and kudos to my partner Dennis for not being afraid to make a statement. The bell isn’t a sales plan; it’s simply a reminder of who we are and who we are striving to be!
Have a great day!
Chris Garlasco
Cindy Donaldson, Marketing Director - Founders Insurance Group
Our producers hear it all the time: “Why do you need all this information to give me quote on my auto insurance?” First off – at Founders, we don’t give quotes – we give proposals, but that’s another blog.
Here is the skinny on why we may not need to know your 5th cousin, 15 times removed (whatever that means!) but we do need other personal information to give you the most accurate proposal.
The majority of insurance carriers use complicated modeling systems to determine the rate they offer our clients. They plug all the information we give them into a massive formula – all of their formulas are different by the way, hence the vast difference in prices we often see – and they spit out a premium amount.
Let’s start with Personal Auto Insurance. Here are key things most carriers are looking at – the evaluation of these factors will often time affect the rate of premium you are offered: 
Credit Score – the biggie! The higher your credit score – the better the premium. Why? They feel someone with a higher credit score is more responsible, is not as much a risk taker and in turn is a better risk for them to take on. This is also why we ask for your social security number.
No lapse in insurance – another biggie. Carriers feel that if you have continual insurance coverage you are more responsible and in turn are a better risk. Some will want to know how long you have had your current coverage and your current limits
Teen Drivers For obvious reasons – carriers charge quite a bit more for young drivers. They are a higher risk. The important thing here is don’t lie about their existence! If you have a teen driver living at your house – when your agent runs their reports, more than likely that teen driver’s name will pop up.
Own a home–Most carriers will offer you a discount if you insure both your home AND auto with the same carrier. Don’t miss out on this one – ask your agent if you are getting the proper credits.
Effective Date– some insurance carriers will offer you a DISCOUNT if you don’t wait until the last minute to get a price from them. Typically its 10-15 days before your new policy’s effective date. Why? They feel people are more responsible if they are “taking care of business” sooner than later. Procrastinators beware!
Pay in full – Carriers love to get paid! If you can pay in full for the year, or ½ year – many carriers will give you a break. Some will also give you a discount for EFT (Electronic Funds Transfer). EFT is a great way to go – you will never be late on your payment and therefore will never get cancelled for non-payment. It is safe and secure so sign up today!
Yes the insurance world is changing – but that’s ok! This is another reason why working with a Trusted Choice Independent Agent is so critical. I can bet you that a 1-800 number isn’t going to cover all the bases as good as your local neighborhood agent will. Sometimes you just need a live body – and this is one of them!
Give us a call – 860-482-3506. You don’t have to tell us who your 5th cousin, 15 times removed is – but you might have to spill the beans on a few more useful facts about yourself!!
Chris Garlasco, Owner & Managing Partner - Founders Insurance Group
When I think about the current insurance environment, I often times think of the old black and white movies where the conductor leans from the top step of a train while shouting “All Aboard!” You can hear the whistle blow while the remaining passengers, disheveled, quickly jump aboard for the journey.
Some of America’s leading insurers are leading the consumer down the track of the “price” model. Ad time is spent on getting you, the consumer to get a “quote.” Coverage and claim service, what in fact your insurance dollars are actually buying, are seldom mentioned and almost never emphasized.
Rather than using this climate to take advantage of our competition’s weakness, we independent agents often hear that conductor and elect to “ride that price train.” That train is traveling to a place that is neither healthy for our clients nor for our agencies.
So what are we doing here at Founders about this situation? We have decided to phase out the word “quote” from our vocabulary. Why is this so important you ask, because it’s about our mindset? We are looking for a great rate, but in that process our first focus must be on the client’s best interest. Offering “free quotes” cheapens what we do for our customers. It is up to us to teach our clients that this is not a commodity sale! Two different airlines can fly you to Denver on time, but two insurance companies handling your auto accident may end up being a very different experience.
We are replacing the word quote with “Proposal.” How are we doing? Well, we are getting there, slowly but surely. It might seem like a small thing, but we want our clients and potential clients to understand that we are not just a travel web site!
Have a great day!
Chris Garlasco
Chris Garlasco, Owner & Managing Partner - Founders Insurance Group
I remember the moment that it became clear to me that I was now a business owner, rather than an employee. It was on a sunny afternoon in 1999 and my partners and I had just returned from making a six figure deal with one of our insurance carriers. The money was badly needed to open what would later become our Orange CT location. I spent the remainder of that day on my hands and knees scraping off the old paint behind the toilet in the men’s room in another office. That was an epiphany if there ever was one!
I was thinking about this story over this past weekend after having a long and enjoyable conversation with a gentleman by the name of Shawn Daigle. Shawn owns the locally famous Avon Old Farms Inn Restaurant http://avonoldfarmsinn.com/sitex/. He graduated from one of America’s finest business schools; I graduated from one of America’s least known ones! He bopped around Wall St for a spell, while at the same time I was learning the insurance business here in Connecticut. We found that we had much in common and that in both of our cases, little of what we had learned in school, or in corporate life, prepared us for the challenges of business ownership.
My business partner, Dennis Dressel, has reminded me since the beginning of our partnership that the money we spend in the business each day is our money! It is the major thing that separates us from those in the corporate world. A bad decision in the small business world just doesn’t mean the end of our job, but possibly the end of our business, our home, cars, and assets! The second thing that separates us is the diversity of challenges that we face. Big companies have human resource departments, organized job training programs, CFO’s, and legal and security departments. In Shawn’s and my case, we are all of the above and more! At some point we still have to have time to sell policies or in Shawn’s case, oversee a great meal.
I have stood out in the pouring cold rain, leaving my wife at the movie theater, while waiting for the police to show up for a building alarm. I have jumped out of bed at 3am for a client involved in a claim at a business. I have donned fire gear to enter into a fatal house fire after the death of a client. Shawn talks of nearly being hit on his motorcycle only to find out later that it was one of his best customers! Our business day never completely comes to an end.
What separates guys like Shawn and me from others, is that in order to be a business owner, it means being “all in.” Everything is on the line, no excuses. Our reputation, built up over many years, can be destroyed in one bad decision. It’s something to think about before choosing an independent agent over an “800″ number company or a “chain” restaurant over Avon Old Farms. We are deeply invested in your satisfaction!
Have a great day!
Chris Garlasco
Doug Grieco, CLCS Commercial Lines Accounts Executive, Founders Insurance Group, Inc.
Although just a year ago I was at career fairs myself looking for job opportunities, I will be going to one tonight on the other side of the spectrum. I will be representing Founders and explaining the ins and outs of being an insurance agent. Being in their position last year, I feel I can relate to what students are searching for and what their concerns are. Bringing more young people into the insurance industry is vital to the longevity and perpetuation of independent agencies. It is not only a great way to make a living but it can also be a lot of fun. The ups and downs can be trying at times but persistence and hard work inevitably pay off in this profession. I look forward to pitching the idea of being your own business within a business and hopefully relaying the idea of entrepreneurship to the up and coming.
So how can I be calling this year’s students up and coming when I just started myself? Well I’ll tell you what, you’ve got me there! I too am classified in the “up and coming generation,” but they ARE younger and I’m sticking to it! Is it weird being on the other side? Absolutely! Less than a year ago I was in class cramming for tests and listening to lectures about derivatives and the time value of money, dreaming about our month long winter break coming up. Although I’m still dreaming of college winter break I have come to terms with the fact that Santa will not be delivering me a month off this year. December and January are one of the busiest times of the year for insurance agents and I most certainly will not be doing any vacationing.
The new generations entering the working world are unique and sometimes difficult for employers to relate to today. Being young and just starting out will hopefully provide a common ground for the students at the career fair to relate to and even if they have questions outside of my profession I have a feeling I’ll be able to help out. Cheers to the up and coming!
Doug Grieco, CLCS
Cindy Donaldson, Marketing Director - Founders Insurance Group
As all of you probably know by now, I am a big fan of social media. As a matter of fact, I just got back from “Brand Camp 2009″ in Chicago where we strategized about using social media in the insurance world. The younger generation – my children’s generation – that Gen Y group that will rule our futures when we are older is obsessed with social media. Email? passe. Voicemail? ditto. If I want to get in touch with my children I text them or leave them a message on Facebook or Twitter.
Generation Y will be the wealthiest generation. They are use to instant gratification, they have an entrepreneurial spirit and will have more jobs by the time they are 30 than most of their parents had in their life time. So what does this all mean?
My generation – the last of the glorious baby boomers – connected in person. I am a pretty darn good networker. I can look at a room and immediately know who I want to meet and why. I can then nurture that connection into a good relationship and sell to them. Generation Y’ers think this kind of networking is – yes, passe. A waste of precious time. They make their connections via social media – it is where they scope out possible dates, friends, and business prospects. It is the internet where they nurture those relationships into selling opportunities, job opportunities and yes often times dating opportunities.
I say – let’s not forget the power of the personal connection and let’s utilize the power of social media. Together they are a VERY powerful combination. If you are in sales – research your potential prospect online. LinkedIn, Facebook, Twitter, et al. Get to know what makes them tick – where they are vulnerable – where their pain is. (In the “olden days” we would have to try and get an appointment with this person to find out all this information – now it can all be done at 2am in front of a laptop with a glass of wine if you so desire.)
Now…make the appointment. People have a much harder time saying “No” in person then they do via an email, telephone or any form of social media.
Combine the power of Generation Y and The Baby Boomers – you might be amazed. I don’t think us “old folks” are ready to be put out to pasture yet – but those young folks are pretty damn smart!
Cheers and happy Tweeting!
Cindy
