Restoration Rewind Delta Development Group Monthly Newsletter
February 2014
Freeze hits the East coast Getting jobs in the door before those doors have actually opened is becoming a regular occurrence for our Delta Disaster Services offices. Our newest office, Delta Disaster Services of Southeastern PA, wasn’t any different. The contacts that the Bones’ have established within their local market have already brought them to the front of minds when disasters hit. Coupled with the large freeze and cold temperatures that quickly hit the east coast around the first of the year, their phones were anything but quiet. The operation received 2 calls and signed up those 2 jobs before their doors officially opened for business January 1. A few more jobs have come in since then and the group is definitely excited about all of the work coming in. Like the others before them, they didn’t expect to have to put everything they have learned, and are still trying to learn to use so quickly, but they are ready to face whatever comes in head on. The Bones’ are not strangers to having lots of jobs and long hours and they are very ready for the challenge. We wish them best as they get through these initial jobs and we will continue to watch them as the phones keep ringing.
California’s $1.1B Paint Ruling Could Prompt More Suits Paint makers could face a surge of lawsuits after a California state court judge ordered three companies to pay $1.1 billion to help government agencies get rid of lead from an estimated 5 million homes in the state. The ruling, while preliminary, was a rare loss for an industry that had turned back some 50 lawsuits filed nationwide over the last 25 years by public agencies seeking billions of dollars to remove lead-based paint from homes built before the federal government banned the product from the U.S. market in 1987. “The California ruling is certainly a significant development,” said David Logan, a class action expert and dean of Roger Williams University Law in Rhode Island. “If it gets upheld, it will open a new path to victory for public agencies.” Lisa Rickard, president of the U.S. Chamber of Commerce’s Institute for Legal Reform, predicted “a surge of frivolous lawsuits” because of Monday’s ruling, which the industry plans to appeal. Exposure to lead is linked to learning disabilities and other health problems, especially among poor children living in older dwellings. The Centers for Disease Control and Prevention earlier this year said 535,000 children had dangerously high levels of lead. In lawsuits against the industry filed on behalf of state and local governments, lawyers have argued that lead-based paint is a “public nuisance” like a major air polluter or a dumper of toxic materials into a river. The lawsuits claimed that unsafe levels of lead found in thousands of children’s bloodstreams each year was caused by the paint industry. But the lawsuits foundered for a variety of reasons. Many older homes have several layers of lead-based paint, making it impossible to determine which layer of paint was responsible for a resident’s lead poisoning _ if in
fact paint was the culprit. Lead also is found in water, jewelry, toys and other places. Other cases were dismissed after judges rejected the “public nuisance” claims, ruling that individuals must file individual lawsuits proving a paint company caused them direct harm. Finally, the industry argued that the old paint is no longer a significant public health risk and that it never deliberately sold a harmful product. On Monday, Santa Clara County Superior Court Judge James Kleinberg rejected those arguments, citing corporate documents dating back to 1900 to rule that ConAgra Grocery Products Co., NL Industries Inc. and the Sherwin-Williams Co. marketed lead-based paint they knew was harmful for much of the 1900s. The judge cited a Sherwin-Williams newsletter from 1900 conceding that lead-based paint was a “deadly cumulative poison” and then a 1922 company advertisement claiming its paint was safe. “In the 1920s, scientists from the Paint Manufacturers Association reported that lead paint used on the interiors of homes would deteriorate, and that lead dust resulting from this deterioration would poison children and cause serious injury,” the judge wrote in his 110-page decision. “It was accepted by the medical and scientific community before the 1950s, as reflected in literature from as early as 1894, that lead paint was a significant cause of childhood lead poisoning.” The three companies found liable have vowed to appeal the Santa Clara County Superior Court Judge James Kleinberg’s verdict as far they can and that process is expected to take years. Kleinberg’s ruling was made after a five-week trial conducted without a jury and 13 years after the original lawsuit was filed.
Only one other verdict was returned against the industry. A Rhode Island trial court judge did award the state $2.4 billion in 2006, but that verdict was overturned on appeal two years later. DuPont is the only paint manufacturer to have paid any damages, agreeing to a $12.5 million settlement in 2005 to get out of the Rhode Island case before a verdict was rendered. The 10 cities and counties awarded damages Monday are the counties of Santa Clara, Alameda, Los Angeles, Monterey, San Mateo, Solano and Ventura, and the cities of Oakland, San Diego and San Francisco.
Another CE Class…Another Success Michael Mastous was recently at Delta Disaster of Northern Colorado to put on their first Continuing Education class. Their brand new Business Development Representative, Cammy Seaman, worked diligently to fill the class with as many attendees as possible. The Northern Colorado office has been waiting for this first instruction class so that they begin to schedule and instruct their own classes. For those that know, the Northern Colorado office are neighbors with the local All Phase Restoration office. In fact, the All Phase office was having a
class the very same day. We are confident that the classes that we present are far better that those delivered across the street and it has become Cammy’s goal to take make sure every insurance agent and/or adjuster in the market knows that. Cammy will get the opportunity very soon as the office is already planning a class for February and to hold a class at least once a month for the future.
Parts that can cause bursting toilets recalled WASHINGTON — Watch out for exploding toilets! Flushmate, the maker of a high-pressure flushing system sold at Home Depot and Lowe's, is expanding its recall of the parts, because they can burst near a seam with force enough to shatter the toilet tank. The Consumer Product Safety Commission says Thursday that the company is recalling 351,000 units in the U.S. and about 9,400 units in
Canada. All related to the Series 503 Flushmate-111 Pressure Assist flushing systems installed inside toilet tanks that were made from March 2008 through June 2009. There were no reports of injuries, but Flushmate has received three reports of the units included in the recall bursting, resulting in property damage. The move expands upon a June 2012 recall of the same systems made from October 1997 through February 2008. At that time, 2.3 million units in the U.S. and 9,400 in Canada were recalled. The consumer agency says consumers should immediately stop using the recalled system, turn off the water supply to the unit, flush the toilet to release the internal pressure and contact the firm to request a free repair kit.
Using Benefect® To Set Yourself Apart Written by Brandon Titus, Franchise/International Accounts Representative
Differentiation is an important factor to successful marketing in the restoration industry. There are many various ways to differentiate yourself and your business, but today’s discussion is on the use of technology as a way to set yourself apart from your competition. In this case, we are talking about chemical technology and one of the most effective products on the market, Benefect® Botanical Disinfectant. Benefect® is classified as a Hospital or Medical Disinfectant by the EPA because of the variety of bacteria that it kills. The EPA has selected 3 representative organisms that a product must have Efficacy against, within 10 minutes, using a specifically approved laboratory method, to be successfully registered in this category.
One of the biggest differences between Benefect® and any other antimicrobial product on the market is Benefect® is made from all natural ingredients. It is made from plant extracts from the Thyme plant, and contains no synthetic fragrances, dyes or bleach. Furthermore, there are no cautions or warnings on the label or MSDS Sheets. Among other things, it kills over 99.99% of germs, and is a fungicide, Tuberculocide, a Virucide (HIV-1), and a Bactericide (including MRSA). In a statement, “Benefect® is safe for you and your customer, and it really works”! So how can you get the most out of this incredible chemical technology? I’m glad you asked. The makers of Benefect® have created an Antimicrobial “Right to Know” information sheet. The “Right to Know” is a commitment to full information and transparency supported by the EPA. The Antimicrobial “Right to Know” sheet allows you to give your customer full disclosure of the antimicrobial product that is being used in their home or place of business. It gives you the opportunity to show your customers that you are only using an allnatural antimicrobial in their home or place of business. Anyone who uses a product other than Benefect® cannot make the same claims. You can download the Antimicrobial “Right to Know” information sheet at the following link. http://benefect.com/PDF%20Documents/Benefect %20Antimicrobial%20Notification.doc (It opens in a Word document so you can attach your logo and the customer’s information to make it more personal). A few other links that may be helpful. The Home Owner Brochure http://benefect.com/PDF%20Documents/Home %20Owner%20Brochure.pdf
The MSDS http://benefect.com/PDF%20Documents/MSDS_20475_Benefect %20Disinfectant_USA.pdf
If you have any other questions about BenefectÂŽ, please give us a call at Interlink Supply.
Delta Disaster Services of Denver Fire Loss UPDATE - Days 121 to 150 As you can see from the photographs, we are well into our framing repairs. We expect to be completely finished with all framing and have the roof dried in by the end of this month. The large loss adjuster we are currently working with is transferring out of Colorado to Kansas City. While a small hassle, this shouldn’t create any problems for us as we are expecting a new adjuster to be on site to do an inspection almost immediately. If there are any issues going forward, he will be the one we work with. After we finish up the framing and put on a new roof, we will have to address some outstanding structural issues. Due to the extensive amount of water that the fire department poured in the house, there is now a crack in the slab that will need to be repaired. On top of the cracked slab are 9 x 9 tiles containing asbestos which will also need to be abated. And we thought this was going to be easy?
Homeowners Are Able to Challenge Insurers It is crucial for homeowners to challenge their insurers to be certain they are providing them the full compensation that is due to them. This is especially important in this modern day and age. The Insurance Research Council (IRC) says the cost of homeowners’ insurance claims has been rising rapidly for years due to the increased frequency and severity of claims. The average claim payment per insured home across the nation rose 173% from 1997 to 2011, according to an IRC report. This rapid growth challenges the ability of insurers to respond effectively. Additionally, insurance companies are under constant pressure to focus on the bottom line and make shareholders happy. When it comes to getting the most out of one’s insurance, homeowners must understand the nuances of their coverage to avoid underpayment. When heavy snow collapses part of a roof, a homeowner might be tempted to accept whatever is offered to them just to deal with the emergency and avoid a protracted battle with the insurance company. Insurers understand this and often use this tendency to their advantage. Homeowners must examine their policies and truly understand what they are entitled to for the
premiums they pay. Here are some tips to prepare policyholders for getting the most for their claims without troublesome delays: Examine policies – Homeowners should not wait until disaster strikes before reviewing their policies. It is important to have a keen understanding of what a policy covers. Homeowners should review their policy periodically to ensure it meets their current needs. When an individual needs to file a claim, they should not be afraid to ask a professional for assistance. Language in these policies can be difficult to understand. Create an inventory – Homeowners should prepare a detailed list of their most valuable possessions. The list should include the item’s approximate age, the initial cost of purchase, and the estimated cost to replace the item. The homeowners should be sure to keep it in a safe place so it does not get damaged. • Establish a photo and video record – Digital cameras make it simple to document the “before” and “after” condition of a house. It is especially important to document the condition of the walls and ceiling inside a home. This way the insurer cannot claim damage was pre-existing or caused by routine wear. • Record the damage – Homeowners should be sure to make copies of any estimates or receipts and keep them organized. Homeowners should check the inventory and mark off anything that has been damaged. These are the initial steps a homeowner must take to prepare for a claim. •
Things to measure! Just as you would never consider cutting an expensive piece of wood without proper measurements, you also need to constantly “measure” all aspects of your business. It becomes very easy to get caught up in all of the day-to-day activities and forget that we also need to track what is happening on a daily basis. Some of the most relevant measurements in any business: o
Production!
What were your sales for the month?
Did you meet your goal? How far off (over/under) is it?
Both dollar volume and number of referrals?
Where did the referrals come from?
Total number of new jobs?
Which referrals did you not close and why?
Was there something that you could have been done differently to capture the sale?
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What was your average job? (Dollar volume). Always try to meet or exceed the national averages. National average for mitigation is $2,500 and Construction $5,000.
Profit Margins! This one is obvious, but as you get busy it also easy to forget. Gross profit margin on mitigation should be meeting or exceeding 70% and on construction 40%. If you are not meeting these margins, we need to identify why.
Estimating errors? Are you leaving money on the table?
Labor costs? Are your technicians spending too much time at the jobs?
Was your subcontractor inefficient or the wrong person for the job? Do they need to be replaced?
QuickBooks data entry errors? Was something charged to the wrong job?
Did you do a “favor” for a friend or an adjuster that reduced the margin? At least you will know why you didn’t meet your objectives.
Marketing:
Number of Referrals?
Where did the referrals come from?
Marketing Activities. X number of outside calls resulted in X number of referrals which resulted in X number of new jobs.
Is your referral base growing? If not, why not? If yes, great! Keep it up!
DSO. Days Sales Outstanding. This is important for measurement of your “Cash Health”. Turning the money and collecting the money is critical to maintaining a healthy cash flow.
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Customer Satisfaction Surveys. Customer satisfaction is an indication that your company understands the needs of your customers. Understanding your customers and being able to satisfy their needs is crucial to the strength of your business. Having strong customer service polices will add to the success of your company. Be sure to share these with your referral sources and adjusters!
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Employee satisfaction. This is another key indicator of business success. Developing a work environment that rewards employees for their hard work is imperative in attracting and retaining quality employees. If workers know they are appreciated, they are much more likely to go the extra mile when needed. Employees are an indispensable part of your business. They are the face that greets your customers.
We will leave you with this… “Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, vision cleared, ambition inspired and success achieved.” Helen Keller