We can probably all agree that lettuce, as a product, is a commodity. If there is a head of lettuce sitting on your kitchen counter, it could have been purchased at any store, with any provider's brand name, and there is nothing to differentiate it from another head of lettuce of equal size and freshness.

So when a question like “What's the price of lettuce today?” is asked, the implication is that the price of the head of lettuce is the differentiating point for a consumer.

That takes us back to our discussion about trade-ins from last month.

Is replacement of voluntary benefits always a good idea? Of course not.

I recommend presenting clients information on three aspects of product value to the customer: benefits, price and service.

First, are the benefits of various products the same or different—and, if different, is there a material advantage to one of the products? Anyone who has compared disability products, especially long-term disability products, knows that small differences in the definition of disability can make a big difference in product value to the insured. Nuances in provisions covering partial disability, rehabilitation services, offset of benefits with external sources of income, the earnings test, trial work days during the elimination period, and many other provisions are very important.

Price comparisons are important because people want to know the bottom line and—all else being equal—will gravitate toward the low-cost options.

Third, it's important to keep in mind that you cannot separate product from its supporting process—product service. This is often the toughest item to compare because it tends to be less black and white than benefits and price. This is where your experience with a carrier bears a great deal of weight.

Finally, the financial ratings and brand history of the insurance companies should be included.

The purpose of comparisons in replacement or take-over situations are often viewed as a way to convince the audience that a change is good, whether this good change reflects better benefits, lower prices, or improved service. Our products are more difficult to compare than heads of lettuce. Our job in providing comparisons should be to help customers understand why our products are valued assets and not simple commodities.

Instant Insights /

What&rsquo;s the price of lettuce?

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What’s the price of lettuce?