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I'm looking at relocating my office and came accross an opportunity to have the new location in the same plaza as GEICO.

Does anyone have any opinion / pros & cons?

Thanks.

That'd be like having a Lowe's and Home Depot side by side. Not smart.

If you have the right markets it may be very lucrative.

What lines of business do you sell? If you have non-standard auto markets then why not, you can catch some business but if your relying on paying your rent from the people who happen to see your office while looking for GEICO then you're going to have trouble... Good luck...

I think it is a brilliant idea! Wonder why you never see a McDonalds by itself but always a Burger King, Taco Bell or some other restaurant on the next corner? It's because it gives people options and since they're already there...why not?

Go for it P Neilson!

We have all the needed markets... Travelers, Metlife, NGM Main St, Farmers, The Hartford, Utica, Safeco, Dairyland, Infinity, Foremost, Tower and Omni.

I'm just debating if being in the same plaza will help me gain or have some of my clients go over for a quote.

Thanks.

You can't control what your current clients will do and whether or not they'll be inclinded to get new quotes, but if you've got comeptitive markets against GEICO rates, then I think it's a grand idea. You might even think of putting up a window sign that screams 'We Can Often Beat GEICO's RATES!' hoping to siphon off a prospect or two.

Conversely, if GEICO rates leave you stranded, then it's probably not such a great idea.

I see clusters of Farmer's and State Farm and Allstate agencies all the time, along with an independent or two. I've never figured out what motivates prospects to switch or solicit other quotes except a significant increase in current rates, crappy service, crappy claims or life changes like new tickets/accidents or a 16 year old coming on line.

Just put a big sign up that says MAIN ENTRANCE. I would open there with your markets in a heartbeat.

I would do some research on how your rates compare to GEICO in your particular area. Have all employees, family & friends in the area get GEICO quotes and run them against your companies. At least you will know where you stand in general (for the time being) and not have a potential exodus to GEICO. I know if I was your customer I would probably take the walk to GEICO and "see what they can do". Also, if you do more than P/L it can become a good source of business for commercial, life, health etc.

If the new digs works for your agencies logistical changes then you should not hesitate to move next door to GEICO. Dont let competition scare you out of a good deaL. GEICO sells price, if an independent wants to be successull they have to sell service. I have found after 40 years in this business that competition helps and very seldom hinders an operation. If competition intimadates one then they shoulkd not be in the business.

Don't get too excited yet.....GEICO's lease may have a "no compete" clause written into it. (We demanded this when we rented our office). Unless you offer products that GEICO doesn't (Commercial P & C) I would tread carefully.....Good Luck!!

SFOInsuranceLady wrote:Don't get too excited yet.....GEICO's lease may have a "no compete" clause written into it. (We demanded this when we rented our office). Unless you offer products that GEICO doesn't (Commercial P & C) I would tread carefully.....Good Luck!!

This looks like something that they (the GEICO agent) would have potential damages from the Landlord since you're not a party to their lease. I don't think that the GEICO agent could compel the Landlord to void your lease or sue you for the Landlord's non-compliance with their lease. I would just make sure that my lease had adequate provisions for signage, parking or any other thing that they might attempt to limit you on or restrict.