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Sep 7

Vanishing Profit – What the Magician Doesn’t Show You


Are your margins diminishing? Do you wonder where profit has gone? In the last decade the Disaster Restoration industry margins were always small, but now they’re microscopic! Mr. Magician, what have you done with our profits?
Let’s take a peek behind the curtain. There have always only been three things that effect profit: Price, Volume, and Expense. In today’s market, profits are vanishing because prices are restricted by Xactimate. Volume is now coming through Insurance Programs demanding discounts. And expense is higher than ever due to administrative.
If you believe there is nothing you can do about your vanished profit, the Magician has performed marvelously. He has pulled the wool over your eyes and left you speechless.
The truth is, the Magician is a master manipulator of the three components of profit. You too can learn to master these components and make your profit reappear. Voilà.

Not every job goes through a Vendor Program. When was the last time your raised your price? If you have to really think about when that was, it has been too long. “Adjusters won’t have it,” you say. I’m here to say, make them tell you that themselves. Line items are everything. Go ahead, pull money out of that hat.

What percentage of your work comes through an Insurance Program? If you would say the majority, it’s time to move that percentage. Non-program work is less susceptible to being nickeled and dimed away. The more non-program work you have coming in, the more money you make appear.

What is the #1 controllable expense of the business? Labor. You and your team have the ability to monitor and control this. How much profit would you gain if you lowered your Labor by 1%? What about 5%? Master this component of profit and you will make money rain from the sky.

Start your journey to become a Master Magician of Profit now. Join us for a no obligation and no risk 30-minute consultation. Register today to book your appointment.


Gerry helped us get our Labor Rate under control. Within less than a year we went from 36% to 22%.
Salt Lake City, UT
Gerry reduced our Cost of Goods Sold from 49% to 38% in six months. I highly recommend his service.
Memphis, TN
Before Gerry, our average Days Sales Outstanding was 120. With his help, we have gotten it down to under 30 days.
Portland, OR
Redirecting our Volume intake has helped us tremendously. We might not have been able to survive on Program work alone.
Spartanburg, SC