How to increase restoration profits during off-season downtime

Seasonal slowdowns in the restoration industry often mean fewer claims and less active work. But this downtime is a great chance to fine-tune your business strategies, boost efficiency, and improve profitability.

Analyzing operations and finding areas to improve will make sure your business thrives year-round.

Identify missed revenue opportunities and improve profit margins

Rising costs and tightening margins make it crucial to regularly check and adjust your business strategies. According to a recent CleanFax Benchmarking report, 74% of restorers said keeping margins and profitability was their biggest challenge, aside from labor shortages. Even small improvements in margin management can significantly boost overall profitability.

• Audit your processes: Regularly audit your team's documentation, image storage, and information-gathering processes. Simplifying and standardizing these steps can save time, reduce errors, and enhance margins. Implementing technology to remove manual labor can be a game-changer.
  
  
• Improve field documentation: Implement technology for consistent and repeatable documentation processes. This not only cuts down on reporting time and liability but also provides accurate documentation, preventing insurance companies from scrubbing estimates — and protecting your revenue.

Mini-checklist: are you ticking all these boxes?

• Invoice pushback: How often are you getting pushback on your invoices?
• Payment timeline: Does it take you 2–4 weeks or more to get paid?
• Missing documentation: How often are you chasing down missing documentation from jobs?
• Photo frequency: How often are you taking photos on the job site? Only on day 1 or every day to show progress?
• Documentation methods: Are you still using pen and paper to create your dry logs?
• Sketching plans: Are you still sketching floor plans by hand?
• Pre-existing damages: Are you documenting pre-existing damages on every job?
• Moisture readings: Are you taking photos of your moisture readings?
• Video documentation: Are you taking videos to show the scope of work?
• Inspection report time: How long does it take you to complete an initial inspection report? 12-24 hours, or more?

Tips to optimize your profit margins

• Review pricing strategies: make sure they reflect your service quality and regional trends.
• Identify and promote high-margin services: Focus on services that offer the highest profit margins. The 2024 CF Benchmarking Report shows that water mitigation is the most profitable service.
• Streamline your supply chain: Cut unnecessary expenses by negotiating better rates with suppliers and using cost-effective practices.

Fine-tune your restoration estimates to catch missed items

Missed items in repair estimates can lead to significant revenue loss over time. By fine-tuning your estimation process, you can provide more accurate billing and maximize profits during downtime.

Certified Restorer, Kris Rzesnoski shared some key missed items:

• Site protection: Itemize site protection costs for each operation phase rather than in a single batch to make sure all expenses are covered.
• Light bulbs: Include the cost of modern LED light bulbs in your estimates as they are significantly more expensive than traditional ones.
• Alarms & doorbells: Make sure you account for the detachment and masking of alarms, doorbells, and speakers during painting or other tasks.
• Doors: Charge for planing and retrofitting doors to fit properly after flooring changes, adding extra revenue.

Tips to increase estimation accuracy:

• Review past estimates: Look for recurring missed items and update your estimation checklist accordingly.
• Train estimators: Educate your team on these commonly overlooked areas to improve accuracy.
• Use estimation software: Adopt tools that help provide comprehensive estimates by prompting for these often-missed items. Proper documentation can also prevent revenue loss by making sure that all billable items are included and justified in your estimates.

Check out the full list of commonly missed line items in repair estimates.

Make your restoration operations more efficient to manage costs

Making operations more efficient can easily lower costs and increase your profit margins. Here are some key strategies:

• Implement project management tools: Use software to track project progress, budget, and timelines efficiently.
• Standardize processes: Develop standardized procedures for common tasks to reduce errors and increase efficiency.
• Use downtime for training: Educate your staff on best practices and new technologies during slower periods to enhance their productivity.

Use technology to boost restoration efficiency and profits

Technology can play a crucial role in optimizing your business operations.

Tips for using tech:

• Use digital tools for documentation and communication: Implement solutions like Encircle to streamline documentation processes and enhance communication.
• Invest in software that integrates with existing systems: Choose technologies that complement and enhance your existing workflows.
• Track key performance metrics: Use technology to track and analyze performance indicators to identify areas for improvement.

Build strong relationships with insurance adjusters

Strong relationships with insurance adjusters can lead to more consistent business and referrals. Effective communication and thorough documentation play crucial roles in building these relationships.

Supplement your photo documentation with videos to create better reports

Embed clear photos and videos directly into reports. Organize them by location to clearly show the extent of damage and required work, making your case undeniable to adjusters and clients.

Automate photo documentation

Leverage technology to sort and tag photos automatically. This reduces manual sorting and makes sure that damage and repairs are clearly highlighted for adjusters.

Craft clear and complete reports

Use concise, direct text to describe the loss, restoration steps, costs, and timelines. This clarity prevents confusion and reduces adjuster pushback.

See what a well-crafted report looks like in our detailed sample report

Be thorough and anticipate needs

Make sure your initial communications include all necessary documents, photos, and legal paperwork. Regularly update adjusters and clients before they ask. Anticipate their questions and provide proactive updates to keep projects moving smoothly without delays.

Create a marketing plan to generate leads during downtime

Maintaining visibility and generating leads is essential for providing a steady flow of business.

Key marketing strategies to boost business:

• Highlight what makes your restoration service unique: Showcase what makes your restoration business special. Get feedback, especially from unsatisfied customers, to improve and promote your strengths.
• Get noticed locally with Google Business Profile: Complete and update your Google Business Profile. Describe your services clearly, add photos, and encourage customer reviews. Regular updates keep your profile engaging and relevant.
• Use social media to connect with your audience: Choose the most active platforms and share useful content. Respond to comments and questions to build connections.

Check out the full article for more detailed marketing strategies on growing your restoration business.

How Encircle can help you work better and make more money in restoration

Encircle’s tools are designed to help you manage downtime effectively and prepare for busy periods.

• Use Encircle for real-time data capture and reporting: Access accurate, up-to-date information to make informed decisions quickly.
• Leverage Encircle to reduce documentation time: Save hours with automated report generation and easy-to-use mobile interfaces.

Proactively using downtime can set your restoration business up for success. By focusing on improving operational efficiencies and building stronger relationships with clients and adjusters, you can turn slow periods into opportunities for growth and increased profitability.

To find out how Encircle can help you reach these goals, get in touch with our sales team today for a personalized demo.