Restoration Rewind

Delta Development Group Monthly Newsletter

March 2016

An Insurance Joke to get your day off right

Two retired business owners from New York meet in Florida. One asks the other how he ended up here. "I had a manufacturing business in Manhattan...when it caught fire and all was lost I decided at my age rebuilding the business was too much so I took the insurance money and here I am. How about you?"

"I had a manufacturing plant in Buffalo and when the flood came through and destroyed everything I too decided to take the insurance money and run...and here I am." The other owner asked.......Hmm...."How'd you start the flood?”

It’s TIME!

Convention time is here! Next week we will all be together, along with some excellent speakers, great demonstrations, awesome food, and more for our 4th Annual Franchise Convention. For most of you, this means hoping on a plane or jumping in a car and leaving your business for a couple of days to come to Denver. For us at Delta Development Group that means that our months of hard work will all come together in what we know is going to be a fantastic event. We appreciate you taking the time away from your businesses and we are look forward to sharing, learning, networking and laughing with you all.

Just a reminder, we start Thursday morning at 10:00am with our optional, but very beneficial Technology Thursday. If you haven’t already signed up for that day please let Ragan know you will be attending.

Friday kicks off the convention event! We will begin promptly at 8:00am with breakfast being served at 7:30am. And don’t forget the Awards Banquet, Saturday evening at 6:30pm.

The extended forecast predicts low 50’s with a small chance of rain. Not too bad for a Colorado March.

We don’t want to give away all of the juicy details, just make sure you are ready for the best convention event yet. Oh, and make sure you have extra room in your bag! See you next week!

CATASTROPHE 101 A major hurricane has swept up the East Coast with heavy rains and 125-mile-per-hour winds from Georgia to Connecticut. Flooding is everywhere. Rivers are roaring over their banks, electricity is out for more than 1,000 square miles, and hundreds of communities have been decimated.

Your company has thousands of policyholders in the affected areas and is prepared to send hundreds of adjusters to begin working on claims. Some are seasoned professionals who worked Katrina and Sandy, as well as Wilma, Rita and Charley. They know the dangers they will encounter, how to prepare and the harsh environment that awaits.

For adjusters who haven't experienced total devastation, it may be hard to imagine. Electricity can be out for days or weeks at a time; water, gasoline, food and other essentials may be difficult to locate. Hotels in the hardest hit areas are damaged and can't be used until they’ve been cleaned, restored or even rebuilt. Roads and bridges may be washed away, and street signs are

probably gone with the wind. A GPS will only be able to take you so far because fallen trees and downed wires will be everywhere. Even flying into an area can be difficult if airports in the immediate vicinity are closed.

However, it is also an opportunity for insurers and their adjusters to demonstrate to policyholders the value of trusting in their company.

“Catastrophe duty can be the most rewarding time for adjusters,” explains George Burgee, CPCU, AIC, quality assurance manager and executive general adjuster and catastrophe manager for Johns Eastern Company, Inc. “Adjusters have the opportunity to assist policyholders in their greatest time of need immediately following a storm. Many insureds the adjuster will encounter during a catastrophe may have never

experienced a loss prior to this event. The adjusters must be mindful that they are delivering on the promise that the agent sold the insureds when they purchased the insurance policy.”

He says that adjusters should be prepared to educate policyholders about the claims process and help to manage the insureds’ expectations, while demonstrating empathy during the inspection and maintaining the integrity of the claims process.

Burge explains that advanced preparation includes the adjusters understanding their capabilities and capacity to handle claims. “This means working with management to have a mutual understanding of the severity and volume of losses to be managed during a catastrophe. The adjuster should be able to utilize the estimating software efficiently and seek additional training if needed well in advance of the storm.”

Any issues that arise during the event that are outside of the adjuster's level of expertise should also be communicated to management says Burge. “Claims above the adjuster's threshold should be re-assigned as appropriate. Additional training prior to catastrophe duty will include a comprehensive review and analysis of applicable policy forms with an understanding of applicable issues that may be encountered during the catastrophe. The adjuster should work with management to identify appropriate vendors to assist with claims investigation including engineers, mitigation companies, dry cleaners and ALE providers,” he adds.

Practical issues John Herr, head of estimating for Jenkins Restorations recommends that contractors and adjusters go to City Hall to get a permit to access an area if it has been locked down. “You need to know what the rules of the city are and what the hours of access are for an area,” he explains.

Anyone going into a catastrophe area should consider bringing MREs, food bars and plenty of bottled water, since food can be scarce. Fast food probably won't be available

(although Waffle House has a CAT team that works hard to reopen any restaurants in a damaged area as soon as possible.) But grocery stores and other outlets won't be able to restock quickly when a large area is affected.

“If you are renting a car, be sure it is reserved and even then don't count on it being there….renting cars during a storm is difficult,” says Rusty Amarante, CR, vice president of operations for BELFOR Property Restoration. “Buy a gas can and keep extra fuel, and always keep your tank filled since gas stations in the heart of the storm area will be out of fuel.”

Hotels in the affected area will probably not be open for business, so be prepared to stay several hours away from the main disaster area. And since traveling anywhere in a storm-impacted area takes longer than normal, that is another reason to keep vehicles fueled.

Burgee says adjusters should take a number of critical items to a catastrophe zone including:

• a telescoping ladder • roof shoes and steel-toed boots • camera • smart phone • digital measuring device • 25-foot tape measure • shingle gauge • hard hat • safety vest • computer • estimating software

• copies of applicable policy forms • batteries for phones & computers • a vehicle AC adapter • cell phone apps — pitch gauge, scanner & mobile claims management software

Amarante also recommends bringing a first aid kit, enough medication to last several weeks (prescription and over-the-counter) since drug stores will be closed, as well as batteries, flashlights, extra clothing and laundry soap. Jason Coleman, vice president of Jenkins Restorations suggests that adjusters familiarize themselves with an area before heading out to a claim. “You can't count on technology and should make sure to have the ADC map books or some other hard copy map of the area. Before you go to a claim, be familiar with alternative routes to the location and have them mapped out ahead of time so you can see what is around that area. Have multiple routes to get to where you are going. Work it out geographically and logically since it will be difficult to get around because of blocked roads and missing street signs.”

Scheduling will be a challenge and policyholders may not be easily available. “Think about how to communicate with them given the circumstances,” says Coleman since cell phones may not work in the area if cell towers are down or service has been interrupted. “And make sure to have coverage information for the policyholder so you can tell them what is or isn't covered.”

Coleman also advises that adjusters and contractors be prepared for additional costs. “Everything costs more when there is a major catastrophe,” he says. “There are mobilization fees for adjusters and vendors who are away from their businesses and families, additional fuel costs because fuel is hard to find and it takes longer to get any place, and prices for smaller suppliers and lumber yards increase because of the catastrophe. Restocking supplies that are already in demand can become even more of a challenge.”

He also says that it is important to focus on one claim or situation at a time. “Be there and take care of them. If you try to do too much at one time, it will just create more work for you later.”

Safety first “A catastrophe area has the largest volume of work and confusion,” says Herr. “There will be an influx of people into the area – good contractors and fly-by-nights. Contact reliable contractors in the area who will be available for your adjusters and who you know you can trust.”

He also says to be prepared for a lot of tension. “It is very easy for you to become a target. You need to be mentally prepared for the accountability and for a hostile environment. People will go from being happy to see you and thinking you can help them to wondering why it took you so long to get there.”

As mental and physical fatigue set in for residents and responders, things can get more hostile as the days go by. “People get yelled at. The environment is emotionally and physically exhausting for everyone involved. Their normal support system isn't there because everyone is impacted and dealing with different stages of grief,” adds Herr.

Amarante stresses the importance of being aware of safety issues. “There will be downed power lines, contaminated water, flood waters, atmospheric contamination, as well as security and protection issues to consider.” He advises traveling in pairs if possible or at the very least letting others know where you will be traveling.

“Keep your vehicles well maintained and make sure they are current on their safety inspections,” emphasizes Coleman. “It won't be easy to get replacement parts or auto service in a catastrophe area.”

Safety also extends to any buildings being inspected. “Do not be quick to go into a building,” cautions Coleman. “Perform an exterior perimeter evaluation before going into a building – look for major cracks that could indicate damage, broken windows or doors, or other signs of building weakness.” Health experts recommend that individuals

working in a catastrophe area have current tetanus shots, as well as Hepatitis A&B, typhoid and meningitus shots to provide some measure of protection against the micro-organisms and other contaminants found in flood waters. Take antibacterial sanitizers and frequently wash your face and hands to prevent the spread of viruses or contaminating any food. The Centers for Disease Control and Prevention say that hand washing is one of the most effective ways to prevent the spread of infection and illness.

Preparation is also important for those adjusters and other responders leave at home. “Arrangements should be made well in advance of storm duty for family needs during the adjuster's absence. The adjuster should prepare to be away from home for several weeks at a time. Preparations may include dealing with mail, bills and services at home including lawn maintenance or snow removal,” says Burgee.

While working a major CAT provides a lot of opportunities for adjusters and vendors to demonstrate their expertise, the situation presents some very real hazards that must be addressed to keep everyone safe. In a catastrophe, working smart starts before anyone ever leaves home.

CASH IN THE DOOR!

Another great month for Delta Disaster Services of Southern Colorado with almost $300,000 CASH IN THE DOOR!

Great job team!

NEW!

ANSI/IICRC S500 STANDARD AND REFERENCE GUIDE FOR PROFESSIONAL

WATER DAMAGE RESTORATION

FOURTH EDITION: 2015

GET YOURS AT THE IICRC WEB SITE TODAY!

Need To Grow Sales – It’s All About Customer Service

Dedicating yourself to leadership qualities that focus on communication skills and customer service is the most powerful way to bring you more luck than you can imagine. The commitment to leveraging your communication skills to improve your customer service will help you to focus on contributing value to those people whose satisfaction determines your own success and allows the ability of learning how to make money.

The rule is: “Your rewards in life will always be equal to the value of your service to others.”

Your Communication Skills Impact Your Customers

The universe is always in balance. You get out what you put in. If you want to know how to make money and increase the quantity of your rewards,

you must focus on increasing the quality and quantity of your customer service to enhance your leadership qualities. One of the best questions that you can ask yourself, every single morning, is, “How can I improve my communication skills to increase the value of my customer service today?”

And who are your customers? Your customers are the people who depend upon you for the work that you do. Your customers are those people, the satisfaction of whom determines your rewards, your rate of promotion, your recognition and your progress in your financial and work life.

Identify Your Key Customer Service Opportunities

You have more customers than you know. To start with, your boss is your primary customer. Your most important job is to please your boss by doing what he or she considers to be the most important task for you at any given time. If you are a manager, your staff are also your customers. Your job is to know how to make money for the company and please them through your communication skills in such a way that they do an outstanding job in pleasing the people they are meant to serve.

If you are in sales or entrepreneurship, the people in the marketplace who use your products or services are perhaps your most important customers. All great success, all great fortunes, come from serving people with what they want and are willing to pay for better than someone else can serve them.

You Deserve To Know How To Make Money

It is a truism in life that, “You do not get what you want but what you deserve.” Your central focus on your job is to do whatever is necessary to make sure that you actually deserve the rewards and benefits that you desire. Any attempt to get something that you do not honestly and justly deserve is doomed to failure and frustration. All corrupt or criminal activity, all laziness and corner cutting, is aimed at somehow getting rewards without honestly earning them in the first place.

The word “deserve” comes from the two Latin words, “De” and “Servus.” These two words combined mean “From Service.”

Many people have the uneasy feeling that they do not know how to master their leadership qualities, how to make money or do not deserve to be successful and prosperous. But the truth is that you deserve all the good things that life has to offer as long as you honestly earn them “from service” to others.

The Rules…

COMPLIANCE! Another one of those words we all hate to love. One important thing to remember is that there is a difference in Best Practices and Compliance.

Best Practices: These are recommendations, not requirements. A great example is grooming (facial hair, piercings and visible tattoos). It is a best practice to have these

as standards for your employees.

Compliance: These are contractual requirements. These are actually what are in your Franchise Agreement and Franchise Disclosure Documents. You are contractually obligated to follow these requirements.

Some compliance items we need for you to pay particular attention to:

1. Royalty due date. Royalty Reports are DUE by the close of business on the 5th of each month. The Franchise Agreement says that we can do the EFT of the funds on the 6th of each month. However, because you are all new business owners, we feel it in your best interest to provide a one-week grace period and initiate the ACH on the 13th. Please do not abuse this grace period or it will be eliminated.

2. If the royalty report is not submitted, the Franchise Agreement offers us the option to do an ACH for the same amount as the prior month’s royalties. We do not feel this is in anyone’s best interest; but this will be exercised in extreme cases.

3. End of Year Financials. These are a contractual requirement for several reasons. This information gives us a very good barometer on just how you are doing and how you are managing your business. It is also information that is required in order for us to republish our FDD every year. Meeting the deadlines to republish the FDD become very critical because of the various state requirements.

We understand that you are busy! We know you have all the day-to-day to manage. However please keep in mind that these three items in particular, are critical for the success and the future of the system. Please help us by being mindful of these critical items needed. If you have questions about the required documents or information make sure to ask Dixie.

Some verbiage from the Franchise Agreement: “Each Royalty Fee payment shall be, without exception, preceded by a statement (“Gross Revenue Report”) of the previous month’s Gross Revenues on a form approved and provided to the Franchisee by the Franchisor. The Gross Revenue Report must be delivered electronically to Franchisor on or before the close of business on the fifth (5th) day of each month. Each failure to submit a fully completed Gross Revenue Report by the fifth (5th) day of each month shall constitute a material breach of this Agreement. (c) Franchisee shall remit fees and other amounts due to Franchisor hereunder via electronic funds transfer (“EFT”) or other similar means utilizing a Franchisor approved computer system or otherwise. The EFT Authorization is attached to the Franchise Agreement as Attachment G. Franchisee agrees to comply with procedures specified by the Franchisor and/or perform such acts and deliver and execute such documents, including authorization for direct debits from the Franchisee’s Delta Services Business bank operating account, as may be necessary to assist in or accomplish payment by such method. Under this procedure Franchisee shall authorize Franchisor to initiate debit entries and/or credit correction entries to a designated checking or savings account for payments of fees and other amounts payable to Franchisor and any interest charged due thereon. Franchisee shall make funds available to the Franchisor for withdrawal by electronic transfer no later than the sixth (6th) day of each month or the due date for payment therefore. If Franchisee has not timely reported the Gross Revenues to Franchisor for any reporting period, then Franchisor shall be authorized, at Franchisor’s option, to debit Franchisee’s account in an amount equal to (a) the fees transferred from the Franchisee’s account for the last reporting period for which a Gross Revenue Report was provided to the Franchisor as required hereunder; (b) the Minimum Royalty, National Marketing Fee and Warranty Fund Contribution; or (c) the amount due based on information retrieved from the Franchisor approved computer system.”

We hate to take the role of an enforcer, but we will if we have to. If you have questions about these discussion points please feel free to reach out to us. We will try to provide more information in the future as to some compliance touch points to keep the entire system running like a well-oiled machine.

Business Development Corner

Owners and Marketers, here is a great article on following up. Whether it’s an estimate, sales call or starting a new relationship; the follow up is as important as the first meeting. Below Kelley Robertson goes over a few reasons as to why people fail to follow up and the importance of that follow up. Enjoy!

THE POWER OF FOLLOW UP By Kelley Robertson

It never ceases to amaze me how few sales people make the time to follow-up after they have made initial contact with a prospect or customer. In the last few months, I can think of at least eight different situations in my own life (business & personal) when a salesperson did not bother taking this initiative. These included a landscaper who designed plans for our property, two different people who spoke to me about creating a promotional piece of literature for my business, a sales rep for a pool company, and a men’s fashion salesman who was asked to send information. In each of these situations I was very interested in the product or service offered by the vendor. This got me wondering…why don’t people follow-up? I think there are several reasons. They don’t want to appear pushy. It may be true that following up too frequently will come across as being pushy. However, very few salespeople ever come close to crossing this line. In fact, one the few times, I left a salesperson was pushy was more because of his tone, rather than fact he actually followed up. As a sales professional, I believe it is our responsibility to keep following up with our prospects until we know for certain if they want to do business with us. However, I also strongly believe that we can cross that line by making too many calls in a short period of time. So where’s the happen balance? It depends on your business. A weekly call is more than enough to keep in touch providing you make sure your call is short and to the point. Don’t waste your prospect’s time by droning on and on. Also, if possible, provide some additional value during your follow-up call. This may give your prospect a reason to choose you instead of a competitor. They forget. It’s easy to forget considering how busy we are. We may have every intention of calling our prospect but we get caught up in our business. Unexpected problems crop up, we find ourselves spending more time in meetings ad stuck in traffic, and because we didn’t

schedule the follow-up, it doesn’t get done. This is a common dilemma but one that can be avoided by considering the follow-up like a scheduled appointment. They make false assumptions. I once submitted a proposal to a company and told them I would follow-up on a certain day and time. Unfortunately, I was extremely sick that particular day and it was several days before I recuperated. I then wrestled with whether or not I should call him. I was concerned he would question why I didn’t call as scheduled. In the end, a simple apology was enough to rectify the situation and move the sales process forward. When someone doesn’t immediately return our phone call or email message, we usually assume the worst – even if this assumption is not verified. I have learned from experience that a lack of response can often be attributed to the fact that the other person is just too busy to respond or does not have an answer for you. They think that the customer or prospect will contact them. I think this is one of the most common myths sales people fall prey to. They think that if they do a good job the customer will automatically call us back – we don’t need to follow-up. Unfortunately, we cannot rely on this if we want to achieve our sales goals. People get busy, they forget or procrastinate and the more time that slips by, the less important your product or service may be to that prospective customer. They have never been taught. Many people have never received formal sales training and have not learned why they should follow-up and how to make this happen. This is relatively easy to remedy. Start by asking or telling your prospect that you will follow-up on a specific day or time. Tell them how you will follow-up (telephone, email, face-to-face) and record this in your day planner or time management system. I use Outlook and now include a reminder so I don’t forget to follow-up. Follow-up should also be completed after the sale is completed. A quick telephone call after your product or service has been delivered confirms their decision to buy from you. I make an effort to send every client a handwritten thank-you card once the sale has been confirmed and again when the services they requested have been delivered. Here’s the bottom line. You can easily differentiate yourself from your competition by making the effort to follow-up with your prospects and customers. Don’t take it for granted that they will call you. Be proactive and contact them. © MMV Kelley Robertson, All rights reserved.

Do you know what sales blunders are costing you money? Increase your sales with a FREE audio program, Sales Blunders That

Cost You Money and two other sales-boosting resources by subscribing to Kelley’s newsletter at www.Fearless-Selling.ca.

The Art of the Meeting

We all know meetings are important, and we know that we must continually have them as business owners and managers. But do you really know how to hold a meeting effectively? Here are some fundamental techniques to follow:

• Send out a meeting request. State the purpose, prepared agenda and set a timeframe

• If you have the opportunity, send out any meaty material prior to the meeting • Make copies for everyone • Begin the meeting on time • Set up the ground rules • Get to the point • Follow the agenda and check off each item once discussed • Take notes throughout the meeting • If someone gets off topic, it is your job as the meeting leader to reel them in. If

the topic is valid. You may need to set up additional meeting to address this issue.

• Look for signs of when you've talked long enough • Know when to end the meeting • Create an action list and schedule a follow-up meeting if needed

At Delta Disaster Services of Denver, we've always taken our meetings seriously and consider them very important parts of our operations. Every meeting that we have has a written agenda. Someone is always in charge of that given meeting. One meeting that we've had since inception is what we call an All Company Meeting. When we were a young, growing company, adding people weekly and doubling our volume every 8 to 12 months, we had all company meetings on a weekly basis.

As the company grew, we positioned our All Company Meetings on a monthly basis. However, we did have a restructuring of the company, where we went from 28 to 14 employees and decided that we needed bi-weekly All Company Meetings to get everyone on the same page during this process, we are currently back to monthly meetings again.

The point of this is for you as a business leader to continually analyze why you are meeting and what your meeting objectives are. Do not get caught in a rut where you're having a meeting simply because you have always done it the same way. Challenge yourself and challenge your organization to have meetings that are productive and worthy.

And we will leave you with this…