Necessity is the mother of invention. It can also lead to the creation of new business to complement your existing one.
That”™s the way Dan Rand describes how Better Homes and Gardens Rand Realty founder Marsha Rand decided to diversify and enter the insurance market in mid-2008. “We had a small space in our office that we couldn”™t lease out,” said Rand at one of the company”™s offices in Rockland County. “We already offered services to complement our real estate component, which are substantial. Offering our customers an opportunity to obtain a price quote and shop for insurance through us gives them the opportunity to do some one-stop shopping. Mom filled the space and in the process, created a new stream of business for our company.”
Hudson Group, based in New City, is partnering with Gordon Coyle, president of the Coyle Group, to accomplish its mission to become part of the insurance industry. “Gordon has a thorough knowledge of the business,” said Rand during an interview at Coyle”™s office. “He has really been a mentor to me in learning how to incorporate this offering into our Better Homes & Gardens Rand Realty menu of services.”
Rand said his mother and family believe in “community first, a common denominator with Coyle Group. That”™s why we are calling ourselves The Hudson Group. We are committed to the Hudson Valley. There are companies out there that have captured the market with flashy commercials and promises of the best rates, but it doesn”™t mean personal service. Our partnership with Gordon Coyle is allowing me to work in the region”™s market and be mentored by an experienced, respected professional. We”™re very fortunate to have him partnering with us in this venture.”
Rand continues to grow in the Hudson Valley, with 24 locations in Orange, Ulster, Sullivan, Rockland, Westchester, Putnam and Dutchess counties; it is in first place in market share for Orange and second in Rockland and Westchester counties with more than 800 sales associates. Its new insurance division will complement its mortgage and title insurance offerings for home buyers.
“Despite the economic climate, there is room for a new growth,” said Dan Rand. “We”™ve gotten positive feedback and had great success as a startup with a 20 percent conversion rate among our clientele. We expect to bring that up to 30-40 percent by the summer of 2010. We aren”™t pressuring clients but offering them a no-obligation insurance checkup.”
Although the real estate market is seeing positive signs of life in Westchester and Rockland, Rand says many people are skimping when it comes to insurance. One example: “Most people see home mortgage insurance as a luxury, but it really isn”™t. A term insurance policy can guarantee your family that your home will be paid for in the event something happens to the breadwinner. It”™s relatively inexpensive when you consider the big picture.”
Yes, there is a lot of competition in the market, Rand admits, “but some companies have stopped accepting new clients, especially in Westchester and Rockland. That”™s why we believe we are well-positioned to bring this service to our customers. Again, they are under no obligation, and we aren”™t going to push them. It”™s part of the service we want to offer to make ”˜one-stop shopping”™ available.”
“We”™ve been talking about this on and off for several years,” said Gordon Coyle. “When the real estate market took a downturn, we turned to this joint venture in earnest, I have an established insurance business, and I”™ve been doing business with the Rand family for nearly 20 years. Rand and I both own Hudson Group, and I”™m actively involved as its managing partner,” said Coyle, whose family established its business during the Great Depression. “This provides us both a new avenue to create new revenue growth. We”™ve seen very positive results and are growing each week, so it”™s definitely been a successful partnership for both the Rands and The Coyle Group.”
