This short story can be read here: [Tom Sawyer- Whitewashing the Fence]
Ben Tally: “Say – I’m going in a swimming, I am. Don’t you wish you could? But of course, you’d druther work – wouldn’t you? Course you would!”
Tom contemplated the boy a bit, and said:
Tom: “What do you call work?”
Tom: “Why, ain’t that work?”
It doesn’t take long to see how easy it is to manipulate someone to do your work FOR THEM. To pass along operational responsibility to another and make them feel obligated and almost excited to do it.
To get right to the point of this mindset detour…..this is what is happening to the disaster recovery specialists that perform work where insurance carriers and their multiple tentacles of control are involved.
They have slowly (and effectively)...
From the desk of Toby:
When I was in business for myself and I was approached about doing work that I had never done, I went to social media groups to find other people doing the work that I needed to quickly learn how to do. What I realized after a few times was that I could figure out how to do the work on my own if I just ignored the noise and put my thinking cap on. I had enough knowledge to get most any job done, I often lacked the confidence to try the first time. What I realized is that I often felt completely in the dark about pricing. So I would go look for pricing parameters. Obviously... This was before the good ol’ Rebel days, and before Restoration Nation; communities that fostered growth and knowledge sharing. So naturally I got more roasted than I got good information.
These were good though. I used "roasting" to pause, take a step back, and look at the truth in the comedy, albeit at my expense. I took a stop back and realized that I needed to develop my...
Disaster recovery. That's what we do.
Mitigation = prevention
Restoration is a broad term.
We are a very niche specialty more akin to emergency management than construction.
I've said for years...the professionals (technicians) should be a very high caliber. Not sub $20 per hour people.
I think $30 is too low for what they NEED TO BE.
Why do you think we see such a struggle at the hiring at the tech level. No one wants to do all that work plus the documentation for $19 per hour.
Our bill rates should technically be up close to $100 per hour.
But we have allowed an insurance industry dictate our value.
They don't care how a job is performed. If they did, half their vendors would never be allowed in a structure.
They want to pay the least.
Everyone knows but they don't know what to do about it.
An emergency services technician, that doesn't need a supervisor (think medical equipment, AT&T, automobile And other should be making $60,000'plus. That's a good living wage.
For that, a...
In a secluded area of Fort Lauderdale, FL - a coastal town with generational wealth building by the minute - there is a luxurious complex where Bentleys are daily drivers, and sit under carports.
All of America’s rich and famous have been there, and many have a mansion on the water for their yachts to be parked behind. The cost of merely owning the yachts is so stinking high it would make maggots gag. The cost of real estate in that luxurious spot probably attracts vultures in human form if you are picking up what I’m laying down.
I managed to stay there and work a large loss in one of the luxurious complexes where the “stinking high” costs are chump change to those living in the area.
I can’t imagine living that way, but dammit, I wouldn’t mind trying! I must admit, while I cant say its my cup of tea - I prefer mountains and countryside - I can definitely say that I was blown away by the luxurious...
Here is the scenario.
Comment at the end and let us know what you think!
Can you imagine the STONES?
Of Course their reasoning is inaccurate, but that's beside the point.
We posted a letter on Facebook and tagged the company that the adjuster was referring to.
We thought we’d share it here… but we’d love to hear your perspective.
Be sure to drop us a comment below.
“Greetings Liberty Mutual Insurance, I'd like to extend my knowledge base and services to you and your organization.
I will actually do this once at NO FEE, as I think the overall Net Gain will help and impact endless parties.
From a factual standpoint, I'd like to clear up...
I don’t expect you to believe everything I say, but you have to know I wouldn’t lie to you.
I have some unique and great experiences.
I have been very fortunate to have some amazing mentors and peers bring me into their universe and grant me the opportunity to see things I may have never otherwise seen.
I have always gone against the grain, like cutting a big juicy Texas brisket.
Do things others have and certainly do things people say can’t be done.
One of those is the current trail I have been on the last few years. I have been on a path to showcase what we (in this restoration/ emergency services industry) have come to accept as truth. And that is that somehow, our process and direction is owned by and steered by insurance carriers.
I am not a fool and recognize how large they (insurance carriers) are and the power they yield…..but being righteous is a super power.
Education and confidence is the...
Everyone is talking about what to do about fuel.
What are you doing in your company to compensate for the added cost?
Costs are up.
Adjusters are still resisting invoices.
So what will you do… what are you doing?
How can you run a profitable business with inflation, and rising fuel prices?
Was 10/10 good enough to cover fuel costs last year? Is it good enough to cover costs now?
“Add a line item for fuel surcharge.”
That's what everyone is saying you should do. Even the mothership of Xactimate (Verisk) has empowered the contractors to bill for increased fuel cost. (Don't take our word for it.)
So Xactimate says its ok to bill... but we are getting feedback that adjusters are stalling. It seems to have caught a lot of adjusters off guard. They don’t have a copy & paste argument for that one… yet.
But they will. They got knocked back on their laurels, but they work for massive...
Profit is your FUEL
Let's talk about my favorite topic.
I have a sign in my office that says:
Gross revenue is vanity
Net Profit is Sanity
Cash is KING.
Profit is your everything and I stand on mountain tops screaming that if you are not truly profitable you put a terrible strain on the engines, your wings and sometimes force the plane to land (to use the metaphor of your business being like an airplane).
The number 1 reason a business fails is CASH FLOW. Cash Flow, as we have discussed all along in this section is affected by a combination of many things.
Your marketing gets your product/ service noticed and entices people to buy from you.
Your sales effort to ensure that you are selling enough of a service to meet the financial needs of your company.
Then your control of the...
We had quite a discussion in the Restoration Advisers Official Group on Facebook. If you aren’t in the group we highly encourage you to jump in there for some zero BS discussion. No outside advertising. No belittling. Just real, raw, and professional discussion. Join here.
The insurance company is always evolving in their arguments and creativity to drive their costs down so they can reinvest the premiums. In the book Delay Deny Defend, the author describes insurance companies as investment companies. They invest the premiums and drive down costs by negotiating claims. *
Those who believe the notion that...
We often hear of insurance companies and third party adjusters claiming that restorers overcharged them for work. The claim is usually that the “restoration industry standard” is “10/10”, or that overhead and profit (O&P) cannot be included in the invoice.
Let’s be clear here, there is no such industry standard. There never has been and there never will be (unless you are on a program, then you have to play by the rules that you agreed to). If you have read the book that we talk about in Disaster Podcaster EP 22 Restoration Markup and Margin, you know that few restorers can run a business and breakeven at 10/10, let alone make a profit. The idea that a restoration company can survive at a low markup defies the mathematics of basic business and common sense.
Our experience in the industry tells us that “industry standard” of 10/10 is a old benchmark that has been propagated by insurance companies and TPAs that are trying to keep their...
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