Water Damage PSP's Programs

[tmdry]

Can anyone pm or let me know of which preferred service providers programs are out there and or how do I go about looking into getting registered w/ you?

Do we just call every single insurance company and ask if they have a preferred service provider opening?

We get floods but not as much as we'd like to.

Before starting my business, I worked for a company which got many leads from PSP' programs, I want to say it was Nationwide but I don't know for sure, all I know is that we would get a ton of them (emergency services but different trade), and it was so easy to close the calls. We don't have trouble closing them now, but we want to increase the #'s per month for the WDR side of the biz and grow.

Lastly, if you are a company working w/ a PSP, are you able to open up shop in any state/region if you decide to move your business to that location? Say the current PSP''s programs for my area are full but there are other areas that I can pick from which would give us much more business, would we be able to open up a "satellite" location there and do business in that area? Basically, we'd be willing to open a 2nd location somewhere else if the work called for. The co I worked for, had several locations by doing this, and they had over 10-20 estimators out and about.

Thanks,
Bill

 

[steve g]

I don't know your area but I suspect its just like mine. there is a new company being started every week. in the last 4 or 5 years I bet the number of water damage companies in my area have doubled. all the time I am driving around and see a new company I have never heard of. when I opened my business in 2002 there were only a handful of water damage players with carpet cleaners taking a small share. now whats happened is with the collapse of the building and construction trades many have decided oh lets get into water/fire damage with no knowledge or education on the profession. as a result every agent every adjuster has restoration companies breathing down their necks begging for work. sometimes I even suspect bribes or other "gifts" are being given to land work. its a freaking cutt throat business and pretty frustrating in alot of ways due to changes in the industry. The other aspect is you have the national companies like serv pro and servicemaster locking down business on a national level. in this scenerio the local people don't even have a say as to where the work goes. I was out on an apartment fire last year and servicemaster actually had 5 or 6 employees blocking the doorway to get into the complex despite having no authorization to be on the job. they simply just litterly tried to strong arm their way to landing the job. if they are willing to go to these lengths are bribes and pay offs, left off the table, heck no. In my state I haven't been able to actually find any law to prevent bribing insurance people with gifts or whatever. you just better make sure it can never be said you inflated claims to pay for it, because thats fraud.

ok so basically I am saying if you try to get on these programs likely you will be laughed at. It don't matter how good of work you do, they don't care. they have so many people begging for work its crazy. a trip into my local insurance agents office will yield 6-8 different restoration companies, pens, coffee mugs, note pads, or other trinkets and thats just at first glance. we also have companies offering to pay plumbers $500 bucks for water damage referrals, which is totally insane. I tell the plumbers there is no way I can pay that, maybe on a big one but I don't want to feel like I need to do things on the job to get that amount covered. again did I say its cutt throat??

 

[Desk Jockey]

Wow Steve you just depressed me, anyone want to buy a WDR business?

Everything you say is TRUE but you can give in or take on the challenge. There are lots of avenues other than calling on insurance agents.

 

[SMRBAP]

I have pretty much extrapolated from conversations from the right people within the major insurers, if you are not a national chain, they aren't interested in you. Some will run you through the hoops - and it's not exactly a one page form, to put you on the wait list, some will actually put you on the list, 36.5 people down.

What Steve stated is a problem in every market I have looked at. Failing companies from other industries getting into fire and water (and mold) restoration. Kickback city - ridiculous per job referral fees - and every source for referrals swamped with restoration companies beating their doors down weekly.

My city has about 520 carpet cleaning firms, and 85% of them less any training - chase h2o losses.

Then you have every failing construction and remodeling firm chasing fires, mold, and water as well. Hell, even landscaping firms are chasing fire for the board ups.

I now get 3x the "come look at this because we think our water, mold, fire, job was screwed up" calls as we do "we need your service" calls. We go, and usually it is. Mold jobs being pressure washed, no containment, water jobs being dried with box fans no dehus, fire jobs being sealed with basic wall primer....... It is a free for all, and a lot of people are getting screwed.

As much as I am against regulations - that's the one way to get the vast majority of those out of the game that should not be in the game. License restoration techs and companies as you would an hvac, plumber, etc.

 

[Desk Jockey]

Anthony your market does sound nasty, sorry to hear that it must be tough to compete.

The thing is how is it any different from carpet cleaning market? Isn't is super competetive and full of hacks also?

 

[steve g]

Wow Steve you just depressed me, anyone want to buy a WDR business?

Everything you say is TRUE but you can give in or take on the challenge. There are lots of avenues other than calling on insurance agents.

yeah thats pretty funny I reread what I wrote and honestly asked myself what in the hell am I doing in this business. ok so with that said how can a guy be successful and not saying that I have been all that successful so what the hell do I know. I think if you have a good personality that is easy with people and easy to talk and make friends with people its going to be a big help. this is something I have to work on. I don't naturally have it in me to be the friendliest guy at first impression, infact I think alot of people might just get he is an a hole vibe from me, until they get to know me. be a social butterfly, it all comes back to how well do you interact with others.

another problem with the industry especially lately I go in and do the dryout and of course I also want the rebuild. the only problem is they have some broke dick friend or relative that needs something to do so they end up getting the repairs instead of me. OR the people want to cash out and try to fix things themselves. I have quit giving estimates on rebuilds instead I just say this. we will put in writing that our charges will not go beyond that of what the insurance company agrees to pay. I tell them we use xactimate just like the insurance company. I also say we don't know exactly whats its going to cost because we are trying to match up and restore what you have rather than new construction and out right rebuild. I am sick of my estimates being used as cash out tools. AND further I don't want to dishonestly and on purpose leave things out of the estimate just so I stand a better chance of getting the job, with the intention to add these things back once the job is secure. basically if you want it done, choose your contractor, don't waste our time and jack us around.

I think starting a restoration business in a smaller market would be alot easier. its just so cutt throat here, we have companies with the ability to advertise on the radio regularly. between that and the national franchises its tuff, then at the end of the day and you have actually gotten CALLED your still not done navigating the mine field because the insurance companies often try to steer the jobs in a certain direction. what happens when through your connections a customer calls that has farmers insurance. you get all loaded up its zero dark thirty and they call to report the claim while you are headed out there, oh shit, just like that you have lost a job because farmers is going to tell the insured they need to call servicemaster. just last week this happened to me customer calls we get ready to leave, they call state farm to report the claim, state farm says call suck-pro, or ummm sorry serv-pro. dammit there goes 3 grand BOOM. or I got called on a fire, we were the only company that was called, went to meet with the customer and adjuster, adjuster was late and said he would need to come the next day after I had met with the customer and drove out there. I called the customer to arrange to come back the next day and customer tells me oh the adjuster has a guy he likes to work with and he wants him to look at the job first. ok another job lost this one would have made about 15 grand. when an adjuster actually calls a contractor to bring them on the job with them before going out there, red flags jump out all over the place, what is their motivation, if they care so deeply who is getting the work, WHY one can only guess why. this is the reality of this business now days. all the marketing gurus and such try to offer some magic bullet for being a huge success. I am not trying to discourage anyone, actually I am venting my own frustrations. there are ways to be successful but its going to take work and skill and mostly public relations. which is hard for us task oriented personalities, good people skills and good at technical things don't come in the same package.

 

[Desk Jockey]

Hell Steve you are not giving yourself enough credit, you should have those guys running scared.

You have the skill set and the experience, you're a good marketer, you know this business. Spend a little time and figure out how to dig yourslef back in deep. Turn a little of that frustration into positive energy and go guerilla marketing hit the big guys with overhead and knock the little with not enough equipment or knowledge to do what's needed. You can do it!

Yes we've seen a lot son inlaw or neighbors take some build backs, we don't handle that end. So it only bothers us to the point that if we are sure that we don't want to be responsible for their work.

 

[Steve Toburen]

...another problem with the industry especially lately I go in and do the dryout and of course I also want the rebuild. the only problem is they have some broke dick friend or relative that needs something to do so they end up getting the repairs instead of me. OR the people want to cash out and try to fix things themselves...

I'm with Richard on this one. We found most of the profits were in the emergency services and drying and most of the headaches were in the rebuild. So I was OK with handing off that part of it. Half a loaf and all that...

Steve

PS I know Chavez Restoration does a lot of end user marketing as in "When disaster strikes tell (don't "ask") your insurance company you want Chavez on the job". They also market a lot to Facility Managers and large institutions. Adjusters and PSP's are not the only way to get W/D work.

 

[Desk Jockey]

Steve the fcc won't allow a siren in the radio commercial.

I didn't like what they did as a replacement but they also had plan B with a jiggle added towards the end. When they get it done I'll run it by you and Ken.

 

[dealtimeman]

We used to loose a lot of jobs to psps but now we rich to the job and always spend time educating the customer from the moment we receive the call.

Just last week, we did a church warehouse that a pipe burst and flooded the whole finished area of the warehouse. We were called out and started extracting only to be told that the insurance company is working on a national Plan with sservypro and wanted to get the lowest price.

i asked him, do you really think a large company that advertises on national television and has commercials during the Super Bowl is going to be a better price than we are?

Authorization was given and we did the job. The days of the easy money I think are behind us, we have to battle to get the customers to call and fight even harder to close on the job.

 

[Desk Jockey]

The best thing is most large facilities have such large deductibles that they insurance is usually only called in to validate it was restored. You deal with corporation and they are all about saving money, which is what we are good at doing for them.

I agree it's not easy, it's a dog fight......but who ever said it was going to be easy?

 

[SMRBAP]

Anthony your market does sound nasty, sorry to hear that it must be tough to compete.

The thing is how is it any different from carpet cleaning market? Isn't is super competitive and full of hacks also?

I guess the difference is cc'ing isn't the gold rush that restoration seems to be right now - and cc'ing is a service that people need, consume "regulary" and resty is one where you are only needed if you are needed.

There is really no solid way to market to consumers and brand unless you have a HUGE advertising coffer to build a brand.

Another difference is a bad cleaner has little chance of causing the structure significant damage, and pose a threat to the health of the occupants, whereas that's totally opposite with restoration.

 

[SMRBAP]

Steve

One way you can stop your estimates from being used as a roadmap to cash the job out is to generate a customer side estimate from xactimate - don't give line item prices. If they want to figure out if they or their neighbors dog can do it for less - make them work for it, after the first hour of them doing figures and walking through lowes to just get materials costs, they'll say screw it in most cases.

It will show each line item, and it's units or qty instead of line item prices. The only price it shows is the total.


drywall installed - 50 sq ft
3" Trim installed - 25 lf
Paint trim - 25 lf
paint 2 coats - 50 sq ft

(Then the final price.)

 

[Desk Jockey]

I guess the difference is cc'ing isn't the gold rush that restoration seems to be right now - and cc'ing is a service that people need, consume "regulary" and resty is one where you are only needed if you are needed.

There is really no solid way to market to consumers and brand unless you have a HUGE advertising coffer to build a brand.

Another difference is a bad cleaner has little chance of causing the structure significant damage, and pose a threat to the health of the occupants, whereas that's totally opposite with restoration.

Remember it was that way with mold too, "MOLD is GOLD" years, heck we did 1-mil just in mold back then.

I would think bad restorer's would take care of themselves? Maybe not in the big city but in small town usa you're only as good as your last job. fuk it up and you're dead.

 

[Desk Jockey]

We give free estimates...ball park estimates. We will look at anything for free and give you a ball park price. You need an itemized estimate, it can still be free if we do the work. We charge for our time for competitive estimates, $300.00-$500.00 paid upon receipt of the estimate. Which we will gladly deduct off the invoice if we do the work. It cuts down on those that are just going to cash out and if they do, at least you covered your time and overhead.

You'll get a few that get upset but once you explain how much time and effort goes into an estimate they can decide if they chose to pay or not.

 

[tmdry]

Thank you for hijacking my thread!! LOL

I also wanted to make a comment on the whole estimate thing, I have yet to give an "estimate" to any floods we've done. We do give them a "pricing consideration" sheet which gives them an idea of what the prices are or could be. I give them a few ideas, for instance, I tell them "this living room here, say we will need approx 10 air movers, and the drying can take between 3-5 days depending on your loss, that is than min $300/day or $900-$1500 on air movers along, plus all the other things we need to do to properly dry your home, etc. This weeds people out right away.