Why Should I Call a PEO Broker Instead of the PEO’s Directly?

You would think going directly to a provider is the least expensive way to shop – but it isn’t, and here’s why.

• Direct sales forces are very expensive – see below for more on how much they cost you. Buying through large channel partners is almost always guaranteed to be less expensive, and give you a better deal. Amazon, Wayfair, Hotel Tonight, Priceline, etc.
• A direct rep only sells that company, and once you call them and get in the PEOs salesman’s Retail pricing Sales system, you are often stuck at higher prices. Don’t get sucked into the rabbit hole before it’s too late!
• Direct sales reps have quotas – the more they charge you the more they make and the closer they are to their quotas. When they’re talking to you, they don’t care about you or your business, they just want to hurry up and close a deal so they can move on to the next unsuspected business owner.
• Direct sales reps don’t have the buying power of a large distributor – see below how much this can cost you in all the fees.
• Direct sales reps can only sell one company – so with that being said do you really think they’ll keep you up to date on that company’s issues, or just recommend one that is better?
  • For example – when times get tough they conveniently “forget” to tell you about how they just lost a lot of clients and/or staff, how the modules really aren’t fully integrated, how they’re about to be sold, the ‘new’ software isn’t working well, a bad block of renewals is coming, e They’ll string you along for a client until the absolute last day, and then leave you hanging.
  • Do you think they are going fairly spreadsheet all the competition (all fees, services, medical plans) and break it down in a way that lets you accurately see the best option out of all of the ones you have? No – you’ll have to do all of these comparisons on your own and learn how to do it right. The problem is, doing it right isn’t actually the easiest thing to do unless you know the behind the scenes real facts on this business game-changing decision)
• Do you think they will negotiate with all the other competitions as hard as a large distributor? Do you think they even have the power to? (hint: they don’t).
• You use brokers now – for medical, and workers comp – for a good reason. Would you hire someone who’s just painted a small shed in his backyard to paint your house, or would you rather hire a fully serviced professional painting crew? That’s the difference.
• Don’t call direct and get stuck paying retail. As soon as they answer the phone their one objective is to get you added to a spreadsheet as another client, paying way more than they should for a lot less of the services than they should be getting.
• Don’t call direct – People get stuck on average spending 63 hours talking to each direct rep, looking at their demos, and comparing everything. 63 Whole hours? You would definitely be better off spending all that time optimizing and expanding your business, wouldn’t you? That’s almost 3 days’ worth of time just trying to find the right PEOs and Services when you could meet with a broker and get it done in a fraction of the time!

 

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