Critique my calling script- need to close!!

4 replies [Last post]
TheRook's picture
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Joined: 2011-05-16

I would love some feed back from anyone in this forum. i am struggling with a close.  i am cold calling business owners only on a muni bond. Hi Mr. _____________, this is Joe Smo from XYZ firm. Did I catch you at a good time?  The reason for my call is that I currently have a supply of high quality bonds that are paying a tax free yield of over 8%. How does 8% tax free compare to the taxable rates you have seen at your bank?  Response: "way above the rates i am getting"well let me tell you a bit about this particular bond. it is a blank blank bond blah blah blah (go through a few bullett points on bond.  now mr. prospect, the majority of my clients are business owners like yourself that are looking for a conservative investment that pays a favorable rate of return, preferably tax free (lets keep uncle sam's hand out of our cookie jar). Now i only have a small supply of 100 bonds but i would trust that if a 8% tax free return is favorable to your bank rates, then starting out with 50 would be a good way to start the relationship: fair enough?  great i will put aside the bonds and email you over the account paperwork to sign off on.  i need help on the close. any thoughts?

on my own's picture
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Joined: 2009-11-03

Nothing against pitching bonds...however with interest rates at an all time low and you are  probably pitching long term bonds...you say they are a conservative investment...what are you going to say to the client when rates are higher and they get a statement showing that the value of there conservative bond investment is down?Just food for thought.If you are in this for the long hall be careful.

Stockguy2011's picture
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Joined: 2011-03-28

on my own wrote:Nothing against pitching bonds...however with interest rates at an all time low and you are  probably pitching long term bonds...you say they are a conservative investment...what are you going to say to the client when rates are higher and they get a statement showing that the value of there conservative bond investment is down?Just food for thought.If you are in this for the long hall be careful. I am also newer in the industry wondering the same thing - trying to make a good impression with a number of new clients (usually its a test for the first 50k-100k, a seat at the table if you will).  There is no arguing the fact that rates are at 40-50 year lows, or close to it, and we've had a 20 year long bull market in bonds, so theoretically unless you think the US will follow Japan into a decade long deflationary environment, bonds could very well be entering a 5-10 year bear market.I worry that the first 10 year "muni bond" I sell them yielding 4.5% will not look good in a couple of years when the 10 year treasury is at 6-7%.

BayouBengal's picture
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Joined: 2011-05-23

I hope the bond you're pitching has a legitimate 8% yield to maturity, and if so, properly explain the risks associated with this high yielding investment.If it's simply an 8% coupon bond selling at a premium .........    then well, that's the same type of misleading sleezy salesmanship that lends to giving our industry a bad name. 

Stockguy2011's picture
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Joined: 2011-03-28

Good Point Bengal, I think he was inferring that 8% was the TEY for the Muni, in which case you should probably mention "if you are in the highest tax bracket."  An 8% Muni (YTM) is junk these days, unless its out to 2050.Quick question for you guys.  I call on Muni's very frequently, but only when I get bonds available.  Muni availability in my state is low so when they are available they sell quickly.  Does anyone else have this issue?I would like to call without having an actual Muni available and build up a nice size "waiting List" when the bonds become available.  Any script ideas?Rook - go to gethardgetraw's last few pages, he has a pretty good script in there. BG also has mentioned a few.

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