Five Ways to Rev Up Your Mitigation Revenue.
Would you like to make $1,000 an hour?
Did you know that you’ve already got the tools to do so? You’re probably already doing these things. But you’re not getting paid for it if you’re not properly documenting your losses.
A properly trained and equipped Water Technician should be creating at least $1,000 per hour of revenue for his or her company.
Do you know what your hourly revenue is currently?
For better or worse, we all have to use Xactimate for water damage estimates (aren’t they actually bills?). If we have to use it, then why not find every line item available to help our bottom line?
It’s plain and simple—master your Xactimate and make more money.
Here are five simple things that your crews are likely already doing. These are things, that if written down properly, can generate real profits for you. For our example, we’re going to imagine a carpeted room with wet carpet measuring 10 x 10 (100 ft2 of Floor Area).
Carpet Mask
– Xactimate Code: WTR-MASKFL
You charge: $0.41ft2 Time to Install: 3min
Revenue/Hr: $820
Floor masking is adhesive-backed plastic. It comes in rolls and is applied using a handled applicator. I recommend using it on all entry and traffic areas that the crew will walk through during the course of their work. Just make sure it gets removed once the drying is done.
Cover and Protect
–Xactimate Code: WTR-PROT
You charge: $0.29ft2 Time to Install: 1.5min
Revenue/Hr: $1,160
Painter’s plastic is cheap to buy and fast to install. You can get it in standard 9×12 sheets so you don’t even have to waste time cutting. And at 29 cents a foot, each sheet is 31 bucks in your pocket! Protecting is one of the most profitable things you can do on a mitigation job. I recommend the Frank’s Red Hot method: put it on everything!
Water Extraction – Xactimate Code: WTR-EXT
You charge: $0.53ft2 Time to Install: 3min
Revenue/Hr: $1,060
Water extraction is one of our most requested services, as well as one of the most profitable, if you do it efficiently. Truck-mounted equipment is much faster than portables. The key to proper documentation is getting the entire area extracted into your notes.
Water Extraction Weighted – Xactimate Code: WTR-EXTW
You charge: $0.92 ft2 Time to Install: 4min
Revenue/HR: $1,380
If you don’t own a Water Claw
, go buy one right now. A lot of people say that they take too long and aren’t worth the hassle. A lot of people are allergic to money. If used properly, weighted extraction takes a little longer than a regular wand. And the price per foot is nearly DOUBLE! At almost a DOLLAR per foot extracted, your ROI could be less than a day.
Anti-Microbrial
– Xactimate Code:WTR-GRM
You charge: $0.22 ft2 Time to Install:1.5min
Revenue/HR: $880
Using germicide spray isn’t as profitable as extraction, but it is something that a lot of mitigation contractors forget. Using Anti-Microbrial sends the signal to your client that you care about them and their environment. It’s also a nice CYA method that you can charge for.
We all know that Xactimate is a required part of what we do. As long as that’s the case, why not use every advantage we can?
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Also published on Medium.
very informative!
Thanks Justin! I’m glad you liked it.
How do you find work?
Do you give incentives to plumbers?
I want to start in this business and I need some advice in this area.
Hi Mark,
In answer to your first question: there’s a thousand ways to skin that cat. I use the internet and blogging, along with my podcast (www.TheClaim.Clinic), to build authority and domain strength (Google juice).
Plumbers? No, not personally. I operate on a different side of the market than actual “restoration” contractors. Most of my work comes from restoration contractors who want help with their Xactimate estimating. There are many insurance contractors and water damage companies who DO market to plumbers by way of “finders fees” and commissions. I could write my opinion on the efficacy of this approach, but I don’t have the time right now.
As far as starting in the restoration business, a great place to start would be LinkedIn (https://www.linkedin.com/grp/home?gid=4028912). Do a search for groups, join, and then get involved.
The profit margins are shrinking every day in the insurance repair industry. TPA’s and insurance carriers are finding new ways to cut costs (your profits) at every opportunity. There are many folks who jump in every year, only to get their buts handed to them due to lack of knowledge and preparation.
Best of luck Mark.
Awesome
Thanks for the feedback. Anything else you’d like to learn about?
please send me five codes
Great information. Let me also add instead of using WTR GRM use WTR GRMB for botanical Benefect anti microbial. You get additional money to use THE ONLY botanical making Benefect vertually free. Now that’s real money.
Great question Dan. I could write a chapter about “approved” charges. In the end it comes down to two things 1)vendor relationship and 2)invoicing methodologies.
If you value a relationship and have to aquiess a certain line item in order maintain it, that’s what you do. At a certain point we all have to realize the reality that Xactimate “invoices” are anything but reality. It’s an imperfect interpretation tool that we use to quantify our services. Some items we make more margins than others. If I have to “give” an hour of labor, I do so knowing that I’m “getting” high margins on something else. That leads to my second point.
If you are using Xactimate for your invoicing, that equipment “labor” is a negotiable item. If, however, you bill a straight T&M, you are entitled to whatever actual labor it took to get the job done. You can’t mix the two. You can’t have it both ways.
Choose for yourself what is the best method of billing for your company, and stick to it.
Great information here… what do you think about monitoring time ? Most insurance companies are using 1 hour for so many pieces equipment, 1.5 for this many etc… How do you charge for monitoring ?
This is excellent inside information.
does anyone know the code for injectidry on xactimate
Hi Frank,
Injectidry is commonly represented as WTR-WALL for about $190 a day. Don’t forget setup though – WTR-EQ
wow! SUCH GREAT INFO!! WHERE CAN I GET MORE? IM PARTICULARLY LOOKING OT AMP UP MY WATER MITIGATION INVOICES..WHERE WOULD I FIND THAT INFO?
Chris, would you be willing to pay for a small mitigation secrets guidebook? That’s something I could work up.
Or you could hire Claims Delegates to review your estimates. $25-$50 could add hundreds to your invoices. Sometimes thousands.
I most definitely would be willing to pay for a guide book. . Maybe a few sample xactimate invoices you yourself have written. I can write a pretty solid sheet. . Just want to be sure I’m not missing something.
I would be willing to pay for this kind of book.
To answer Dan’s question, I usually put in 1 1/2 hrs per day to monitor. I also ad a small bit of time in each room for equipment setup on the first day. This is especially helpful when you respond after hours.
I’d use 0.25 per room then 1-2hrs per day after that for “monitoring and final pickup.” F9 notes are your friend.
Another good line item to make some additional $$$$ is HMREQD or TCREQD or WTREQD. Line item charges to clean your equipment following a CAT 2 or 3 water loss, or fire or smoke loss or mold remediation project. I use these line items for cleaning air movers, dehus, scrubbers, truck mount, wands, etc… Also, HMRFHEPA – billing to replace your HEPA filters on each and every project that you contract and use scrubbers.
Can you tell me the code for non damaged glue down carpet on concrete for replacement with hardwood?
FCCGD(-)
FCWAV (+)
Of course, there are many hardwoods to choose from.
Thank you! Obviously new to Xactware and finding the code description is challenging at times>
For now, take the time to read the descriptions of every item. It will help give you hints as to what you’re missing.
Just curiius for the readers of this article I run a service master franchise in the south, I do not own it unfortunately, but get paid based on percentage, keep in mind I do everything but deposit incoming checks and write payroll checks, I hire/fire, schedule, maintain equipment, Bill out and collect, on call 7 days 24 hrs, we r a small outfit just hired another full time employee a month ago we have 2 now including me lol, we did $320k last yr and $200k this first quarter since I took over billing and started marketing on my own in hopes of making some real money, and there lies my question. I am paid 25% of all revenue but labor is taken out of that and rest is paid to me as a quarterly bonus, the owner has capped labor at 25% is that industry standard, also 8% is what was said about billing and collecting but he has yet to commit and we have not had a sit down meeting to determine this 1st quarter payout as of yet. So guys what percentage of revenue should labor be to run a good water mitigation franchise and pay employees fairly??, and if u generate $320K ALONE and u do all the business stuff required except billing ( if I had done the billing we would have made $750k no doubt in my mind) what is a fair yearly salary for such an employee?? Last year the owner told that revenue increased by 5 roughly $50k and the profit margins rose 9.8% almost 10% I thought great a infill get a performance bonus lol I didn’t get shit not even a Christmas gift, but I digress, [email protected] is my email if anyone runs a franchise please shoot me an email, would love to pick ur brain and see if the numbers hold up, I leave only been in this industry 2 1/2;yrs didn’t know it existed my background is construction and remodeling, so the pricing and margins, both profit and employee labor, material and billing out are all new animals, any serious legit correspondence would be welcomed, thank to anyone who took the time to read and hopefully u can help me, just single fathere of a 3 yr old girl trying to make as much money as he can but don’t want to get the ripped.off in the process of working my self to death, once again THANKS.
Adam, sounds like you’re working your ass off my friend. It sounds like you’d make a great owner/operator.
If you’re billing and collecting, I recommend tracking all invoicing for your own records and track as best you can the expenses.
After a month, you should have a real accurate idea of what you are generating as far as revenue for your company.
I think 25% of revenue with labor taken out is great. I would like to see labor as a firm dollar amount on a monthly basis, instead of a percentage. Kind of like a salary and bonus. That way costs are still locked, but you don’t have a regressive percentage taking out of your bonus.
You should probably check out the 24HR TECH at http://www.waterdamageprofit.com
Have your owner buy the video training package for you. It will help your profits and documentation.
How do you know what tax category to put on water damage estimates in xactimate.
Com/rep/rem, mat only. etc….
Hi Susan,
That’s actually a great question, which I don’t know the right answer to.
I leave most tax questions up to the contractors who are used to operating in the area in question. It’s tough to track the tax regulations in each city/county/state we work in.
Andy, I recently purchased your video training course which I believe includes the 24 hour tech manual. If I’m not mistaken you, I could be completely wrong, but I believe that cost included one or possibly even two Xactimate estimates prepared for me. How do I go about getting those estimates? Also, I clicked the resources link on this page and then clicked on the Xactimate services, but I get an Error 404 page. Just a heads up.
Thanks for all the valuable information Andy, I am really enjoying the videos!
Hey Chuck!
Thanks for reaching out. Shoot me an email and I’ll hook you up.
[email protected]
Chuck, have I reached out to you on this yet?
Good Afternoon Andy.
I do apologize, I would have gotten back to you much sooner but or some reason, I hadn’t seen your earlier reply.
I have several water mitigation/restoration projects that we are currently working on and I am interested in speaking with you about having you do the Xactimate estimates for these projects. Feel free to give me a call today if you can find time in your schedule.
Thanks again Andy and I hope to hear from you soon.
Chuck Doucet
Doucet Services, LLC
Lafayette, LA 70506
(337)224-4607
My claim adjuster said my mold wasn’t under central air and only put in to scrub one room cooled by a miniSplit AC this is not the case and my house is blown away ( I noticed a leak 1morning turned out to be the toilet so I ripped half my downstairs ceiling out which was covered in black mold with white circles growing in it… I have 2 kids so I went out and bought a commercial dehumidifier/air scrubber/mover and a antimicrobial fogger to do the job myself but I plan on fighting for more money. What should I charge per day for a 1: air mover 2: dehumidifier 3: air scrubber
I’m sorry to hear about your situation Ryon.
Keep in mind that Xactimate rates are generally for professional mitigation contractors who do this for a living.
I would say a fair amount would be the purchase price of the equipment.
Unless the carrier recommended a mitigation company and you chose to do it yourself. Then I would say, I’m not going to help you play contractor by giving you pricing recommendations.
Sorry man. That’s just not something I do. For free at least.
Andrew, Thanks.., I wish I could show you a pic. The adjuster who came out said since I took the drywall down their wasn’t 10 square feet of mold for her to see she didn’t need to have a mold person come out even in spite of the pictures I showed her she did tell me ” if your kids get sick or start having breAathing problems call and we will certainly come back and treat the house” if you want to charge me or you have a book I can buy let me know I don’t expect anything for free I did call 2 mold remidiation companies but they wanted me to sign over my entire claim and make me responsible for any overages also subject my home to a Lien. I would be happy recovering simply the cost of equipment. I’m not trying to get over on someone just want my house to be safe.
Kevin, thanks for elaborating on your on the job experience… I do own a painting pressure washing and remodeling business and I frequently get people who want advice on anything from what paint to use, what chemical or compound will take out stains on their house or driveway… I’ve showed up to bid a exterior and told them how to clean their house to get another 3 years out of their current paint job instead of charging them for something they didn’t need….And yes I’ve asked for professional advice from people before but I’m sorry your frustrated
I am sorry to hear about your situation Ryon. But I am with Andrew on this one. I have 18 years of on the job training – this costs me my time and dollars for training / credentials. I get people all of the time who call me and want me to tell them how to do a job… and it’s a bit frustrating. Do you call your mechanic and ask him how to change an alternator?
Best of luck to you.
KH
😉
what would be a good code for cleaning stubborn efflorescence?
I think that depends on what the substrate is. Brick? Wood?
Go back to the proposed cleaning method. Dry Ice blasting? Hand sanding?
Xactimate doesn’t have a specific line item for “efflorescence”.
You’ll likely use a combination of actions to achieve the desired end result. i.e. sand + treat + seal
Thank you!
Ryon,
At this point you’ve got to escalate the issue. Find the claims supervisor. Get them on the phone and explain that your next step is to refer your claim to the state insurance examiner.
Send all your documentation to the claims supervisor, reference your claim number, and show them the total dollar amount you’ve come out of pocket to date.
That’s it man. You can’t control the adjuster, and you’ve got to get mad.
There is no magic words that I have that will make them listen to me any better than you.
Hey I like to know if you know anything about fire jobs
I know a great deal about fire damage and repairs. Shoot me an email: [email protected]
Hello, my name is Angie and I have a question. How do you bill for serum (mold remediation) in Xactimate? There is no line item other than anti-microbial (WTR-GRM) and that really doesn’t cover the actual cost of the product. Am I missing a code? Thanks in advance!
Angie,
There isn’t a mold-specific spray or coating. There are a number of “anti-microbial” items, but none that are going to work for professional mold remediators.
Keep in mind that most mold is not covered by insurance, so naturally Xactimate doesn’t make line items for it.
Hello Andrew, what a pleasure to read your blog. I wonder if you can help me. We’re trying to find Xact codes to bill a reverse air pressure and anti-microbial treatment of an HVAC system & ducts during standard mold remediation that can make that procedure lucrative enough to meet our profit line without having to use a bid line item. Any suggestions?
Martin,
I’m glad you found the blog.
I’m sure I could work up a macro of items for you using existing XM8 database items. What is something like that worth to you?
Andy,
Just One Questions For you. My dad And I own a water/fire Restoration. we are pretty small just the 4 of us. Me and my parents talk about this all the time, because when I do the estimate mine are always higher then when they do them. I add ever little thing I can and they do not. Is it better to squeeze ever last dollar out of an estimate and make it as high as you can. There are endless amount of thing you can add on to an Xactimate estimate with the right photo and note, but do the insurances like it when we turn in a 15 page invoice with a bunch of little things added on to them to make it even higher? Is it worth the hours in the office or should we do them short and sweet and focus on getting more work?
There is always a balance.
Xactimate is a tool like any other. If I takes a couple keystrokes to add a couple hundred dollars, what’s wrong with it? Adjusters need estimates that will pass their internal audits, that’s all.
Each company and program is different, but once you learn the rules all items in the Xactimate database are fair game in my opinion.
If you’re not writing estimates at a rate of $10,000/hr, you may want to hone your skills or find someone to wrtie them for you (hint, hint). 🙂
Hi Andrew,
After reading all post, I am planning to buy Xactimate, but is it worth to pay the price VS the income it will generate to me? It is a requisite for me to work for insurance repairs.
Second question, how do you get or find your customers to prepare them the estimates, and make the profit you say?
Thanks
I wouldn’t pay the $2,000 annual subscription to XM8 until I had some training in it.
Hello Andrew,
I am a ServiceMaster franchise owner in Northeast Illinois. I consider myself to be a good estimator, but there’s always room for improvement. I downloaded your Opening Statement for Xact. It’s pretty thorough. Do you have a Closing Statement? Is one necessary?
I’d like to check out rest of your guides.
Thanks
Good Afternoon Andy,
Foremost I want to thank you for the awesome videos/blog that you have created. They have been very helpful as I am new in this field.
A little about me: I am a licensed mental health counselor and recently got into the restoration business with my partner. I understand how to work with insurance adjusters/agents and generally understand the restoration industry. However, being in the health care field most of my life- I am finding it difficult to learn Xactimate and what codes to use to create a estimate. I am eager to learn how to create estimates in the most effective way. Would you be able to give me any guidance or resources?
I highly appreciate it!
Julia
Very informative. I am an adjuster myself. I am not interested in cutting corners, If I can make the claim larger, legitimately, it is to my benefit. I am interested in ways to make money using X28 outside of the adjuster arena. any advice?
You could write estimates for contractors. You could write for Claims Delegates.
will I receive a pdf in my email immediately or I will have to wait for a package in the mail when i purchase the pdf manual
Email
Andrew —
Is there a way to reach you by telephone for a conferral?
are you still active with this? I would like to ask a few questions, and maybe pay you for some help
Id like to hire you to help me translate my typical estimate into an insurance company estimate. I’ve got to turn this around quick. I’ve been trained in mold, lead, asbestos remediation and repairing water and mold damage, am a licensed California GC and typically lump things together into one price based on years of experience. Now, dealing with insurance companies requires breaking it down to the level of “roll up carpet”, “unroll carpet” etc. mind numbing. For example, I just thought saying Xsf of drywall at $x/sf would suffice because thats how my subs bill me, knowing of course it means purchase, deliver, site protect, hang, firetape, skim coat, texture, clean up. Same with insulation. Same with scrubbing mold or treating wood members. Running an air scrubber in a negative pressure environ. But insurance wants every last motion and material documented, photographed and validated. My head is going to split. Just learning Xactimate. Any thoughts?
This is really insightful – I recently learned a lot about water mitigation due to my own burst pipe situation and considered going into the business.