Wednesday 26 October 2016

Why More Remodelers Are Adding Restoration Services to their Business

Posted by at 9:48 AM in

Grow Remodel Business in the Insurance Damage Repair Industry

Building a stable and growing remodel company is really hard even in the best of times. Reports have shown that due to the 2008 recession more than half of all construction companies went under and have not returned. Conversion rates are tough. Many contractors go through the entire process of bid preparation only to lose it to the lowest bidder. Most capture no more than 2 out of every 10 bids presented. Many contractors are looking for more dependable and stable sources of sales that produce higher conversion rates and they are finding that in the insurance damage repair industry.

There are many different ways to benefit from becoming an insurance damage repair contractor including more consistent work, more means to grow your business, higher profit margin yielding a 50% opportunity, and involvement in an industry that never yields to recessionary or economic pressures. Third Party Administrator Networks dominate the industry today. Insurance companies pass the management of their claims to these TPAs as a cost savings strategy. The TPAs develop a team of preferred contractors who comprise their network and claims assignments are made directly to them on a rotation basis.

Becoming part of these preferred contractor networks is not as hard as one might think. This is especially true of remodel contractors who are in short supply in most networks. There is an application process to vet the contractor, and if they pass program requirements activation can occur in as little time as 6 weeks from the moment first contact is made. Program requirements are not unusual and not hard to meet. There are 10 Third Party Administrator Networks looking for dependable contractors who provide a quality finish and are dedicated to customer service and satisfaction. If you are such a contractor it is highly probable that you can become active in 6 or more of the 10 National TPAs within a relatively short period of time. I say this because this is the common experience of my client contractors who have applied and were selected by several TPAs. You need to know who the TPAs are, where they are, who to contact, how to differentiate yourself from others, and how to successfully navigate the application process.

Many contractors trip up during the application process and are declined, but understanding what the TPA is looking for enables the contractor to be more informed about the standards required leading to selection and activation for one or more of the TPA client carrier programs. If you want to participate in the insurance damage repair industry you can. It could be transformational to your business and to your life.

Reference: 6 Month Coaching Plan – The Revenue Generation; 9 Month Coaching Plan – The Startup Igniter