I’m here today to answer two questions for you. When is the right time to supplement, and why does Claim Juicer push for preproduction supplementing? Can’t I wait until the end to submit supplements?
Now, I’m not going to answer the question but give you three key points to make an informed decision for you and your restoration company.
- Cash Flow
Now don’t get this confused with profit. Lack of cash flow is the single biggest destroyer of insurance restoration companies period. Cash flow is so vital that Entrepreneur Grant Cardone Says, ” cash is not king, cash flow is king,” and those rules apply to your company. In fact, they are more important to you, a contractor plagued with net 90, net 120, and let’s face it, we all have those jobs where we don’t see recoverable depreciation for six months. For a few minutes, let’s simplify your company and the cash flow barriers you may face:
I have a great friend in the industry who says, “I make 70% of my money in 2 random months. Now he’s a contractor in Minnesota, so he’s not roofing in the winters, but we should all be aware of his quote and how important it is not to run the piggy bank dry in the offseason, and more importantly, not run your piggy bank dry in the busy season. Let me say that again. The piggy bank can not run dry in the storm months to have maximum success. See, if you supplement early and often, you will receive supplement monies earlier and more often, and as Grant said, “cash flow is king”.
This leads to our second key point.
Profit and profit earlier. Profit margins get us excited, and receiving a preproduction supplement is like getting an extra 35-40% in profit before the work has even started. on an average 30 sq. roof, what could you do with an additional $5-6k? How many problems could that solve for your company preproduction? - Setting an expectation with the customer, desk adjuster, and how you view the project.
With customers, the number 1 reason a project goes sideways is simple, expectations not being met, the inability to manage those expectations. Imagine a customer that understands the claims process and how supplements work. Imagine that they view you as the hero standing up for you to get the proper items approved to build their project.
Know that you should be the hero, supplement early and inform the customer of that specific service you are offering. Trust me, it brings mega value.
The desk adjuster, think about it, if you supplement early, you open the door for easier approvals and, most of the time, a quicker supplements process. It’s simple, the waters are muddied, and you open the door to so many objections supplementing at the end of the project, objections like, well prove to me you used 6 nails in the roofing system per code or show me the starter strip up the rakes prior to tearing off… The proof is much easier to acquire if it’s known prior to production, and PWI is as good as cash!
Check out our video on Choosing the Right Time to Supplement