I’ll give you a quick tip-off, it wasn’t some secret way of dealing with TPA’s or insurance companies.
I’ve worked with hundreds and hundreds of restoration companies across most English-speaking countries. As I always say, this gives me wonderful opportunities to see what you may not.
I was having a conversation with a friend of mine, Jonathan Grubb from United Restorers, before the AIR conference in Boulder last week. We’d brought up the fact that there were companies who had their best year ever during the pandemic, and companies who had their worst year ever, some who didn’t even make it. That got me looking at the primary difference at why this was.
There is a huge fundamental difference that I see between restorers who had their best year ever versus those who had the worst year. No, it wasn’t some inside trick to get new technicians, or handle the TPAs, or to not get bullied by insurance companies.
It’s what they focus on, where they spend their time and attention. And there’s really two major areas, the PAST and the FUTURE.
Companies that had their best year ever were mostly focused on the FUTURE, regardless of the Pandemic. They were busy finding every opportunity during the crisis.
Those who had their worst year spent most of the time dealing with the PAST, such as arguing with insurance companies and TPAs, trying to collect what was owed instead of getting more marketshare.
Now, I know there’s hiring difficulties this year, but even that played into it. While some were busy trying to save a dollar an hour on payroll, the successful companies were increasing pay to hang onto their most valuable technicians so that they could get the work that the other guys couldn’t afford to in that they did not have the workforce.
So you see what I mean about focus. Past and future.
I’d say that 75% of the focus and attention of the most successful companies from last year was on the future while smaller, less successful companies spent 75% or more focusing on the past.
I had a conversation with a restoration company owner last week who is doing over 70% margins while his techs are making more money than they’ve ever made, and they had their best year ever. And they had all the same problems with TPA’s and insurance companies that you may have.