Restoration Rewind Delta Development Group Monthly Newsletter
June 2017
A Celebration of Success! At the Annual Franchise Convention in March, Owner Emmis Chellman and his team at Delta Disaster Services of Southern Colorado were awarded the Franchise of the Year award. This marked the third time that they have won the award over the 5 years they have been in business. To celebrate this fantastic accomplishment and the team that made it all happen, Delta Development Group hosted a party at the Southern Colorado office. Invited were all of the employees and their families and also the valuable subcontractors that assist them on their projects. Emmis and team were presented, by President Michael Mastous, a plaque highlighting all the accomplishments of the office through their time in business. It was really great to see the team members be recognized by all of their peers for their hard work and dedication. The group has contributed so much to the Southern Colorado market area, we were very excited to be able to celebrate right along with them. Congratulations Emmis, Rosey, Jessica, T.J. and the entire Delta Disaster Services of Southern Colorado!
Delta Family Strong Delta Development Group is pleased to announce the first re-sign of a franchise agreement. Delta Disaster Services of Southern Colorado signed their successor agreement in mid-May, not only taking over the entire southern portion of the state of Colorado but also agreeing to be with the Delta network for the next 10 years. We are very happy to have this group be the foundation of the second phase of our franchise network.
This office has accomplished so much during their first 5 years in business. Some hurdles, but definitely a lot of learning. Throughout that time, they have built a phenomenal team and a fantastic operation. We have watched them service the southern Colorado market for the last 5 years with Delta pride, solidifying their name within that area. We are excited to watch what the next ten years bring.
Top Performer Award The awards just keep coming. Delta Disaster Services of Western Colorado has been recognized as a Crawford Contractor Connection Top Performer for 2016. The winners of this award are recognized for their ability to effectively manage the many touch points within the CCC program. Congratulations to Tyler Milyard and his entire team on the Western slope!
Crawford Contractor Connection Top Performer for 2016 Announced: The Top Performer Award winners for the Mountain States for 2016 have been announced and recognized. This award is provided each year to our performance leaders based on overall excellence measured by estimate upload TIP, customer service scores, professionalism in communication, cooperation and overall POM scores. All winners of this award will be provided special recognition during the general session at the 2017 Contractor Connection Conference & Expo in St. Louis. Also Top Performer conference attendees will receive a special “Top Performer” ribbon and a “Golden Hammer” lapel pin. In addition, the Top Performer Award winners will be invited to send two representatives to a special Top Performer Symposium event, September 21 and 22 in Chicago, hosted by Crawford Contractor Connection. 1800 FLOODED—Colorado Springs, CO Abracadabra Restoration, Inc.—Tucson, AZ American Technologies, Inc.—Phoenix, AZ Belfor USA Group—Albuquerque, NM Belfor USA Group—Phoenix, AZ Better Way Services, Inc.—Tucson, AZ Campbell Roofing—Monument, CO Complete Restoration of Salt Lake, LLC—Midvale, UT Delta Disaster Services of Western Colorado—Grand Junction, CO DriRite—CMG 3, Inc.—Phoenix, AZ Gardner Contracting, LLC— Aurora, CO Jim Black Construction, Inc.—Thornton, CO
More Awards – Blue Hammer We aren’t done yet; Delta Disaster Services of Western Colorado was also awarded the 2016 Blue Hammer award by Nationwide Insurance Property Repair Network. Based on a criteria of first and foremost, Customer Service then TIP times, POMS Scores and number of assignments, the Blue Hammer award is given to those at the top of the group. Blue Hammer award winners also serve on the 2017-2018 Contractor Advisory Group which helps bring the voices of those in the field to the table and assist in continuously improving the Nationwide Property Repairs program.
Congratulations Tyler Milyard and the entire team at Delta Disaster Services of Western Colorado! We are proud to see you representing the Delta brand in such a prestigious manner.
CASH IN THE DOOR Based on April royalties, once again DELTA DISASTER SERVICES OF SOUTHERN COLORADO is leading the system with Cash in the Door. Great job everyone! Also a very nice Honorable Mention goes to Shane McKnight and the Delta Disaster Services of Salt Lake South crew. They had their best month ever last month! Keep it up in Salt Lake!
Leadership VS Management
This is a good book for managers who want to be better LEADERS We all know that leaders need vision and positive energy, but after an exhaustive review of the most influential theories on leadership–as well as workshops with thousands of aspiring leaders–the authors learned that great leaders also share four unexpected qualities. The first quality of exceptional leaders is that they selectively reveal their weaknesses (weaknesses, not fatal flaws). Doing so let’s employees see that they are approachable. It builds an atmosphere of trust and helps galvanize commitment. The second quality of
inspirational leaders is their heavy reliance on intuition to gauge the appropriate timing and course of their actions. Such leaders are good “situation sensors”–they can sense what’s going on without having things spelled out for them. Managing employees with “tough empathy” is the third quality of exceptional leadership. Tough empathy means giving people what they need, not what they want. Leaders must empathize passionately and realistically with employees, care intensely about the work they do, and be straightforward with them. The fourth quality of top-notch leaders is that they capitalize on their differences. They use what’s unique about themselves to create a social distance and to signal separateness, which in turn motivates employees to perform better. All four qualities are necessary for inspirational leadership, but they cannot be used mechanically; they must be mixed and matched to meet the demands of particular situations. Most important, however, is that the qualities encourage authenticity among leaders. To be a true leader, the author’s advice, “Be yourself–more–with skill.” We recommend this book to any of you out there striving to be better leaders and not just managers. We are happy to discuss your readings and your thoughts about the material.
Property Damage Estimates Totaled $51.5 billion in 2016
The average fire damage property claim cost $45,482 in 2016 It cost a lot more to repair damage property in 2016, according to Xactware’s 2016 U.S. Property Report. The company’s XactAnalysis network processed almost 5 million property estimates last year, totaling $51.5 billion, a significant increase from the $39.6 billion handled in 2015. The increases mirrored the catastrophe activity seen in April and May with hail, flooding, and tornado claims, as well as the damage in August, October, November and December from Hurricane Matthew, windstorms and thunderstorms. Property estimates reached a high of $5.5 billion in December. The average cost of the property estimates reported to Xactware increased 12% from $9,233 in 2015 to $10,347 in 2016, due in large part to increases in construction costs and the frequency of catastrophes. The figures come from several sources including independent adjusters, specialty providers and contractors. The cost of the average
property estimate from independent adjusters dropped by $466, while estimates from contractors increased by an average of $575. Property estimates for fire claims averaged $45,482, and were the most expensive type of claim filed, followed by hail claims at $11,019. The least expensive claims involved vehicles ($6,067) and vandalism ($5,878).
Reconstruction Costs Rise While reconstruction costs also rose in 2016, it was at approximately half of the rate seen in 2015 or 1.81%. Fuel costs frequently affect building prices because they impact petroleumbased products such as carpeting and composite roofing materials. The price of crude oil rose from $31.68 in January 2016 to $45.71 by November 2016. In 2015, the price per barrel of crude oil actually fell approximately $10 per barrel. Xactware’s Property Report identified 43 catastrophes that impacted the U.S. in 2016. The largest increase in rebuilding costs occurred in Washington, D.C., at 4.42%; followed by Vermont at 3.25%; and Rhode Island at 3.0%. Alabama (.046%), West Virginia (0.57%) and Arkansas (0.59%) saw the smallest increases.
Marketing Corner Meeting with our referral sources consistently builds the relationships necessary for a business to grow. When meeting with referrals sources, our marketers need to be impactful and mindful of their message and intended outcomes. Below is a list that clearly defines the key aspects of properly handling these meetings. Personally #6 is one that I subscribe to when working with any type of customer. This is a quick read and something you can print out and hang on your wall. Enjoy! Jason. By GEOFFREY JAMES MONEYWATCH
For sales professionals, no time is more precious than time spent speaking with a customer – especially if face-to-face. That’s when you build a customer relationship, learn about customer needs, and move the sales cycle forward. The last thing you want is to waste the golden opportunity, so here are ten rules to help ensure that your customer meetings are productive: #1: Thou shalt not have a goalless meeting. Before meeting with a customer, have some idea of what you want to accomplish during the call. Prior to the call, review your relationship with the customer and identify gaps in your understanding of the customer’s business. Then set an appropriate goal that will move the relationship forward. #2: Thou shalt not be blind-sided. The worst sales meetings are those where the customer has been sandbagging and uses the meeting as an excuse to dump on you. Before meeting with a customer, find out what has happened at the customer site since your last sales call. Make sure there's no festering wound that your presence is going to irritate further. #3: Thou shalt never, ever be late. Nothing says "I can't be trusted and I don't care" faster or better than being late for a meeting. Always schedule more than enough time to make your meeting, regardless of traffic and other delays. If you arrive early, pull out your iPhone or iPad and get some online work done. Or just relax and compose yourself. #4: Thou shalt not be unreasonably ugly. As much as some people wish it weren't true, appearances count and, in a face-to-face, you're going to be judged at least in part (and maybe in whole) based how you look. This doesn't mean that you have to be America's Next Top Model, but it does mean that you must present yourself to your best advantage.
#5: Thou shalt not ask stupid questions. Some people say "there are no stupid questions." Those people are stupid, however, because it's idiotic to ask a customer a question that you can find out with a little research on the web. If there's some other way to find a piece of customer information, use it. Don't waste time with a customer going over what's public knowledge. #6: Thou shalt not give the third degree. Customers don't want to be on the receiving end of an inquisition. Pick two lines of inquiry for each sales call and set a goal to get good answers for at least one of those lines of inquiry. For example, on the first meeting, focus on understanding the management chain, but leave the buying process for the next meeting. #7: Thou shalt not talk more than you listen. Goal-focused sales reps often want to push the conversation into the dealmaking phase. But selling is largely a process of listening rather than talking. During the conversation, listen to the customer, then pause to think about what the customer said, then contribute what's appropriate. #8: Thou shalt not ask leading questions. Sales reps are taught to ask questions that lead the customer towards whatever the reps are selling. (Example: "How can our company help your business?") Such ploys, however, are transparent and laughable. Instead, have a conversation that allows the customer "room" to give you the information that you need. #9. Thou shalt not force the conversation. As early as possible in the conversation, invite the customer to speak about whatever is on the customer's mind. Example: "Yes, I'm here to talk about our super-widget. But what's going on with you? How did that big project turn out?" Chances are that you'll find out more from that conversation than any number of pointed queries of your own. #10: Thou shalt not neglect the follow-up. If you followed all the previous commandments, chances are that there will be some action items that come out of the meeting. Make sure that you deliver on every commitment that you make, preferable sooner than you said you would. Hint: Schedule your actions the second after the meeting is over!
Update on Qvinci! At the March convention, and a few times since, we have mentioned the introduction of Qvinci to sync some of your QuickBooks data to us here at DDG. Since many of your were interested in what this would provide to us, and how we would use this data; we want to give you an update. Thus far the data received as a result of your syncs with Qvinci has been great! All franchises, with the exception of one, are participating in the data sharing and so we are getting some really great data. Some information learned thus far: SYSTEM WIDE:
As you can see from the graph above, as a network, we have over $400,000 in receivables that are aged out over 90 days. WOW! This is pretty high. Here is what I suspect: 1. Invoices are possibly being booked when the job is sold, not when the job is complete. Remember per G.A.A.P, you cannot invoice a job until it is complete, or “substantially� complete (at least 80%). In QuickBooks, the progress of the job should be tracked via your estimates and sales orders. (Call Dixie today if you need help with this) 2. We need better communication with mortgage companies. By communicating effectively with the mortgage companies, you can speed up the payment times. Figure out what documentation they need and provide it
ASAP. Stay on top of them to ensure checks are being sent to you with the proper endorsements. Don’t ever trust a mortgage company will do what they say in respects to your payment requests, check, check and double check. 3. We need to be requesting draws on all larger jobs (even if there is a mortgage company). In Denver, draws are requested on anything over $10,000 and on ANY job that is a self-pay. By receiving payments at 1/3 stages of completion, your receivables and cash flow will look a lot better. 4. Start the mortgage company process much sooner in the course of a job, don’t wait for the job to be complete. On the Work Agreement, there is a place for the customer to list their mortgage company. It is a best practice to get this information from the homeowner at the time the sign the work agreement. Then begin immediately to work with the mortgage company, there is probably a lot of paperwork and signatures that will be required, getting a jump on all of this will help your DSO. 5. More aggressive collections may be needed. Sometimes people just need to be hounded. Homeowners think the money belongs to them. Mortgage companies don’t want to pay anyone. And the insurance company is relying on us to get it all sorted out correctly. Not always the best position to be in. We can share with you some of our collection best practices if you need them.
As a network our payables are very current! Shows good financial strength! Good job, everyone!
This graph shows our 2015, 2016 and 2017 compared P&L’s. I am looking at Income primarily because that is the most accurate at this point in the year. We are 2/3 of the way through May and very nearly half of our 2017 revenue has been reached. Income is looking good! Keep it coming!
We will continue to provide updates throughout the year! Please let us know if you have any questions or if you would like more information.
And we will leave you with this…