The treasurer hunt is our effort to find the lost or hidden treasure of missing items from an adjuster's repair estimate. When the staff adjuster writes a repair estimate, they typically get only 85% - 90% of all the necessary repair items.
Many full-service contractors struggle with cash flow. They float the costs of their rebuild work and don’t get a nickel toward those costs until 45 – 60 days after completion. The insurance company is fine with contractors floating those costs, and so are customers. The only one not happy with the arrangement is the contractor and for good reason!
I have gone on the record to say that I LOVE … Xactimate … TPAs … and Construction. Each of these are hot buttons for contractor trash talk. Some contractors say of Xactimate, "I can't make any money," or "Xactimate is a terrible program."
Are you an entrepreneurial business owner looking for your next big move, rebuild services might be it! Of the 25,000 restoration contractors in the US, 4 out of 5 do Mitigation only. The number of full-service companies is relatively small, given the need and opportunity that exists.
It's really very simple. When you show up on the doorstep of a customer who is ankle-deep in water, they think, they expect, they want you to do all that is needed to make them whole. You don't have to sell them or convince them to let you do it – they expect you to do it all. Everyone wants the convenience of making one call to one contractor who does it all!
Owners, don't ask your team if they want to grow your business. Why? Because they really don't! Owners and employees see the world differently. Owners want more, and employees feel they are doing enough already.
Net profit is what's left over after all your work is done, and bills are paid. In restoration, we should expect net profit to be around 20%. If you make $1 million in revenue, you should have $200,000 remaining after everything is paid. Where is your net profit?
Who doesn't have problems with controlling material purchases? We all suffer from employees and subs buying stuff that we know nothing about. They buy too many, they buy unauthorized stuff, and they pay too much for stuff.
FCC AV is the Xactmate code for Floor Covering Carpet Average Grade. It's important because it's the grade of carpet installed in 80% of US households. In Chicago, Xactimate pays $21.98 per SY and in San Diego $22.52 for FCC AV. What if you could buy this carpet for $10.99 a SY? That would produce huge savings for you!
A contractor recently said this to me. I accept that not all contractors know how to make a good profit on rebuild, but the right question is whether there is good money to be made. We all have experienced that moment when the light comes on, and we suddenly understand something we didn't previously grasp, and we ask ourselves in amazement, "why didn't I see that before?" We just don't know what we don't know until we know it. That moment of insight changes everything!