Welcome to Pfeifer Advisory

Our firm has enjoyed the opportunity to help clients navigate the difficult landscape of the competitive financial services world. Since the launch of Pfeifer Advisory LLC in 2008, our life insurance company, asset manager, and distribution clients have called upon us to lend insight into where to go next in the areas of life insurance and investment products strategy and design.

Thank you for your confidence in us and we look forward to continuing to serve our clients for years to come. As always, if you would like to connect with us, just drop us an email or call at (847)-362-6277.

September, 2015

Dear Friends and Clients:

The remarkable growth in Keurig one-serving coffee brewers and the companion pods is a business school case study in market dynamics. The coffee pods brewed by these machines do not taste better (according to most people) than the old-fashioned "grind the beans, heat the water, and shower the beans" method used for many years. In fact, many people feel that pod-based coffee or tea tastes worse than traditional brew.

Further, using typical prices for a bag of fresh coffee beans and coffee pods, the price per cup of coffee is 2.5 times greater to enjoy pod beverages versus traditional brewed beverages. Why are people willing to pay 2.5 times the price? One word – convenience. Less clean up, and a little faster result. Not that brewing traditional beverages is that difficult or time-consuming, but for the benefit of marginal convenience, consumers are willing to pay $150 - $300 for the machine and an ongoing price that is 2.5 times higher.

The life insurance industry is starting to embrace convenience, but the truth is, we have not yet come close to attaining it. To most consumers, purchasing life insurance is still a grueling, uncomfortable, and maybe even an embarrassing process. True, simplified and guaranteed issue forms of life insurance are being sold in greater numbers, but have not adequately penetrated the limited attention span, "I want to click and be done" population in the U.S. today. The "process" now trumps "price" and "product", and will likely continue to do so for some time.

The message in all this? For the middle market, focus on the process. As long as the process becomes as easy as dropping in a coffee pod, customers will place high value on it and happily pay up.

Tim Pfeifer



Monthly Article Archives  
July 2014: "Ready, Fire, Aim"  
May 2014: "Treasures in the Attic"  
April 2013: "Too Many Cooks"  
January 2013: "Set it and Forget it - No More"  
June 2012: "Crying Uncle"  
January 2012: "Dancing with the One Who Brought You"  
September 2011: "Back to the Future"  
May 2011: "The Baby and the Bath Water"  
February 2011: "The New What!?"  
November 2010: "Boring Can be Risky"  
August 2010: "Exchanging VAs"  
July 2010: “What is BOFQ?”  
April 2010: “Setting the Bar”  
January 2010: “The Need for Speed”  
November 2009: “Variable Life – Beaten Down for How Long?”  
September 2009: “Blueprints”  
August 2009: “Thoughts on Rule 151A”  
May 2009: “Silver Lining in Dark Economic Clouds”  
February 2009: “Merits of Retaining Business”  
January 2009: “Marketing Principles at a Brewers Game”  
December 2008: “Understanding Where the Profits Come From”  
November 2008: “The Benefits of Product Diversity”  





Pfeifer Advisory LLC :: 5220 West Meagan Court, Libertyville, Illinois 60048 • 847-362-6277 • Email