The Restoration Pricing Saga
By Jeff Cross
When I was discussing possible editorial topics with Kristy Cohen, the CEO of the Restoration Industry Association (RIA), what jumped out to me was the challenge of restoration pricing, especially the idea of providing pricing feedback to software estimating providers. You know who they are.
Which led me to a discussion with Anthony Nelson, a member of the board of RIA, and who also serves on the AGA Pricing Feedback Committee. Before chatting with him, I had no idea there was a committee for this. You learn something new every day.
I wonder how many are reading this that were in the restoration industry before estimating software made its impact and yearn for the old days of competitive pricing.
Because, as I discussed this topic with Anthony, it was readily evident that restorers aren’t just tasked with doing a good job with water damage work, mold remediation, structural drying, fire and smoke restoration, and other services. Restorers are forced to play the game of pricing and negotiations with those outside of their true customer base. More unwanted balls to juggle than ever before.
But the solution that Anthony provides in our interview is solid. Smart restorers know how to provide pricing feedback to estimating software providers and how to negotiate to maximize revenues and profitability.
In the interview, Anthony said regarding pricing software: “There is a huge benefit to having it, and a huge challenge it presents. When the pricing works for your business, it is a good thing”¦but when it doesn’t function well for you, it becomes a challenge because you are forced to substantiate any changes that you make to that price list.”
So, some will say they value estimating software and others might not. It’s all about what you do with it and how much work you want to put into the technology that drives it all.
To learn how to perfect your restoration pricing and work alongside estimating software effectively, watch the full Take 5 With Cleanfax segment below.
The restoration pricing saga will continue, but there are strategies available to you that might move the needle into the positive zone the next time you look at your financials.
Jeff Cross is the editorial director of ISSA Media, which includes Cleanfax magazine. He is the previous owner of a successful cleaning and restoration firm. He also works as a trainer and consultant for business owners, managers, and front-line technicians. He can be reached at [email protected].
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February 21, 2023