How much money can you make in the restoration industry?
The average size of a mitigation job in the US is $3500, and the average size rebuild for that same $3500 mitigation job is $12,000.
One customer a week for 52 weeks produces over $800,000 of revenue and a 50% profit. Can you get more than 1 job a week? ABSOLUTELY!
On average, a small restoration company generates $750,000 in yearly revenue, with an end-of-year net profit margin of about 15%. This equates to a net income of roughly $112,500. When the owner’s salary and related expenses, approximately $75,000, are factored back in, the total approaches $200,000.
There are many sources for getting damage and repair work, but the best source is the Third Party Networks insurance companies outsource their claims management too.
Can you get on TPA programs? ABSOLUTELY!
I tell contractors all the time that getting on TPA programs is simple, just not easy. The simple part is meeting the requirements. Just about any remodeling company can meet those requirements. The part that is “not easy” is navigating the application process. It can bed a daunting process and is unfamiliar to most remodelers, and so having an experienced guide to get you to the finish line intact, approved, and activated is vital. Do this, and you get in.
What are the profit margins of a restoration company?
The industry norm is:
- Mitigation – 75%
- Rebuild – 50%
- Roofing – 40%
These profit margins include Overhead & Profit (10/10) on all your rebuild and roofing work.
Imagine doing a $12,000 … or a $100,000 rebuild work and earning a 50% profit. Outrageous, you say! Yes, it is entirely scandalous but doable over and over and over again.
This can only happen in the insurance world and for two reasons:
- Overhead and Profit starts you at a 20% profit before the job even begins
- Xactimate pays very very well in most markets
Look at these rates for drywall installation:
- Indianapolis = $80 per hour
- Boston = $105 per hour
- Seattle = $110 per hour
- San Diego = $120 per hour
Can you make money with these rates? I think so!!
If you are a remodeler looking for ways to grow your business, nothing will make a more significant impact on your future growth than entering the insurance damage repair industry.
If you are interested in knowing more request a FREE 30-minute consultation – https://www.growmyrestorationbusiness.com/contact-us