This blog is here to answer two questions for you. When is the right time to supplement and why does Claim Juicer push for pre-production supplementing?
The first reason is cash flow, now don’t get this confused with profit. Lack of cash flow is the single biggest destroyer of insurance restoration companies. Cash flow is so important that serial entrepreneur Grant Cardone says “cash is not king, cash flow is king.” That rule applies to your company, in fact it’s more important to you, a contractor that’s plagued with net 90 and net 120 and let’s face it we all have those projects where we don’t see recoverable depreciation for eight months. For a few minutes let’s simplify your company and the cash flow barriers that you may face. I have a great friend in the industry who says I make 70 percent of my money in two random months. He’s a contractor in Minnesota so he’s not roofing in the winter but we should all be aware of his quote and how important it is to not run the piggy bank dry in the off season. More importantly don’t run your piggy bank dry in the busy season. The piggy bank cannot run dry in the store months to have maximum success. You see if you supplement early and you supplement often you’ll receive supplement monies earlier and more often and as Mr. 10xer says cash flow is king.
This leads to our second key point. Profit and profit earlier. Profit margins are what gets us excited about this industry and receiving a pre-production supplement is like getting an extra 35 to 40 percent profit before the work has even started. What can you do with an extra four to six thousand dollars and how many problems could that solve for your company, pre-production.
The third point is setting an expectation with the customer desk adjuster and how you view the project. With customers the number one reason why a project goes sideways is simple, expectations not being met or the inability to manage your expectations. Imagine a customer that understands the claims process and how a supplement works. Imagine they view you as the hero who’s fighting to get their proper line items approved to build their project. We can email you our free customer expectation template that you can plug right into your procedures. Simply send out the email to your client when you’re ready to submit supplements and it outlines the entire supplementing process in a way that your customer understands. This sets an expectation. Know that you should be the hero, the person fighting.
Supplement early and inform the customer of this specific service supplementing. It’s going to bring you huge value. When you supplement early you open the door for easier approvals and most of the time a quicker supplement process. It’s simple, when supplementing the back end the waters are muddied and you open the door to so many objections. Objections like, prove to me use six nails in the roofing system per code or show me the starter strip up the rakes prior to tear off. Proof is so much easier to acquire if it’s known prior to production, and let’s face it PWI is as good as cash. I hope that answers your question when is the right time to supplement.