Is there a company we can label as “perfect”? It doesn’t matter if it is a big corporation or small mom and pop shop. No one is ever perfect. But hey, that’s life. This past summer we have had many property claims due to disaster that damaged either people’s basements or roofs. That means when an insured needs help with the aftermath of the disaster, a preferred vendor gets called by the insurance company to go and either do emergency cleanup and or reconstruction to the home to its pre-loss condition (if need be).
There are several contractors in Canada and everyone operates slightly differently and has different personalities. This is not to say one method is better than the other. Even the most reputable company can have glowing reviews from millions of clients but in their dark closet they probably have few skeletons (aka bad reviews). The worst part is, you can have people who love your company and are extremely satisfied with your products and services but one bad review can hurt a company easily in matter of seconds.
In the insurance industry, contractors are at the bottom of the totem pole. Contractors (especially those who deal only through insurance claims) get fed only if it is handed to them. It also doesn’t help that the industry is a highly competitive one. There are so many restoration firms in Canada and more competitors in the industry means more you have to fight for the market share. But that also means the more market share you gain in order to grow your business, less market share the other firms in the industry will have. That means other firms do not like you if you grow, because it means they see less revenue.
If a company can gain a competitive advantage, they should take it. When companies, all things equal, are competing for business, in my opinion, comes down to this: customer service. Customer service can make or break a company, as quality of service indicates to clients what type of company you are.
Have you ever had to deal with a restoration firm and what was your experience like? In your experience what are the most common problems with contractors? It would be interesting to see we could do to improve our business and learn from other’s mistakes.
“The principle is competing against yourself. It’s about self improvement, about being better than you were the day before.” – Steve Young
2 responses so far ↓
ContractorBids // October 17, 2009 at 7:43 am |
hmmmm I like this post but I would love to see some on how to save on construction costs in this tough market
ServiceMaster Restore York Region // October 19, 2009 at 3:48 pm |
Generally you cannot cut costs because as a contractor, your costs are dependent on your supplier/manufacturer. If you want to cut cost per unit, perhaps make an agreement to receive a higher quantity discount. If you cut costs in labour or materials, you could irrevocably hurt your company because of reputation or lack of quality workmanship. Speak to your long-time suppliers about providing even discount on early payments. Everyone loves to be paid within the 30 days, but mainly pay between 60-90 days term, so maybe if you agree to pay within 30 days, ask for a discount, and more discount if you pay within 15 days (if you are able to).
In addition, look at your financial statements and see where you are spending too much that is unnecessary. Maybe you sub out too many jobs, when you can do it in-house. Or maybe you are spending too much money on rent.
You could also cut costs through calling your service providers like cellphones to find a better plan that suit your needs, turn off lights when you aren’t in the room. You would be surprised how much we spend on overtime or how you could also negotiate deals with your cellphone providers. I reduced my plan by 20% for my own personal cellphone by just asking.
Last note: I do not recommend that you cut quality or labour wage as you want the best people on your team who will work hard and provide excellent service to your clients.