The History & Future of Selling Restoration Services

Selling services for any service trade is never easy. Performing sales for the mitigation and restoration industry is extra challenging because part of the process is about convincing people to trust you and remember you in the future when they might experience emergency property damage. 

Owning a mitigation/restoration company is also not easy. As the industry changes, new challenges emerge.

• Insurance carriers have created 'managed vendor programs' to reduce their claims costs. Qualifying to join these programs is not simple, and participation in the programs is seldom lucrative because of the controls and shrinking margins.
• An influx of new mitigation/restoration contractors is crowding the marketplace as they compete for inclusion in insurance programs, direct work, and commercial clients.
• Many of the restoration franchise systems have increased the advertising and promotion fees they collect from their franchisees.  

For these and other reasons, business convention, even necessity, encourages restoration company owners to expect a revenue return of five times the investment for each sales representatives' salary. Using this formula, a salesperson who is paid a fifty-thousand-dollar salary should generate one-quarter of a million dollars (250K) in gross sales each year. Perhaps this clarifies why so many salespeople and marketers feel pressure to produce results.

Unfortunately, many of the traditional selling tactics are no longer sufficient. Time, and especially COVID-19, have revealed the chinks in the once shiny armor of restoration sales and digital marketing techniques.

 ?      Businesses are aware that social media seldom delivers the results it promises. By itself, social media is not the answer.

?      Hardworking business development salespeople now struggle to reach the decision-makers.

?      Disaster chasing can be useful and lucrative, but it's rarely easy. Long hours, high stress, and highly competitive is an accurate assessment of property disaster chasing. 

No wonder a friend of mine, a fellow restoration company owner, once said, "Having a water and fire damage business is not for the weak."

 So, why do we participate in this business? Because when a restoration team is in a good groove, it's exciting. It's satisfying to help people, and it can be emotionally and financially rewarding. 

 Please understand, I don't mean to project an entirely negative picture concerning the challenges of sales and promotions. There are always salespeople that achieve incredible results regardless of the obstacles. They find a way to succeed, and so can you.

Every dedicated mitigation/restoration salesperson will benefit from understanding the origins of our industry to learn how it evolved and exactly why particular sales and marketing strategies have been in lockstep with the evolution. History lessons do not enamor many people. However, I promise you will gain an expanded understanding of current marketing, the dramatic changes that are occurring today, and where selling is heading. Being on the cutting edge of sales is the right place to be if you want to thrive. 

Pre-1970s - Before on-location Drying

Before on-location drying, carpenters performed controlled demolition of the water-damaged parts of a structure. Floor surfaces were mostly made of hardwood or tile, often covered with area rugs. When the area rugs got wet, they were hung on ropes or draped over fences to drip-dry. The most expensive middle eastern area rugs woven with wools and silk were placed face down on grass lawns to dry. The wet hardwood floors were removed, discarded, and replaced. Tile floors fared better during a water intrusion; however, wood baseboards and wood subfloors were always a concern.

By the mid-1950s, wall-to-wall carpeting became the dominant floor covering. When it got wet, wall-to-wall carpets made of wool face yarn and jute fiber backings gave off a foul odor. Wet carpets often shrank. The restoration response was to cut the carpeting apart at the seams room-by-room. The wet pieces of carpeting were taken to local warehouses to be dried. A week or more later, skilled carpet installers put the pieces back together again as best they could.

From the sales perspective, the construction industry dominated the restoration industry and presented themselves as the age-old experts with a system that worked. This was before on-location drying was invented.

 1970 to 1990 -The Early Years of Mitigation

The birth of on-location drying (mitigation) began in the early 1970s. The innovators were carpet cleaners, carpet installers, and HVAC technicians. They believed there had to be an alternative to rip-out, as they called it. These industry pioneers, such as Lloyd Weaver, Claude Blackburn, and others, transformed small HVAC air handling units and dehumidifiers into portable drying equipment. At first, the technology was crude. By trial and error and by employing advanced scientific research, a new industry was born. 

The first practitioners of on-location drying were steam/hot-water extraction carpet cleaners (including this author). Because we owned extraction cleaning equipment capable of removing standing water from carpeting and floor surfaces, we were targeted by the drying equipment manufacturers to purchase and use their products. These manufacturers explained to us how drying equipment worked and how it could generate additional revenue. Enlightened carpet cleaners were eager to provide on-location drying for residential clients, especially the income property owners and property managers we already served. We had a built-in market.

Our first sales messaging was simple. "On-location drying will save time and money" We knew we could dry a wet apartment faster than a contractor can perform demolition and replacement, and we could do it for substantially less money. That was our main message, simple and straightforward.

However, the construction trades continued to push back by warning commercial property owners and insurance companies that on-location drying wasn't practical or safe. Contractors reasoned that on-location drying posed a potential health risk because dry rot would result when structural materials were not thoroughly dry. Many property owners, property managers, and especially the insurance industry remained skeptical of mitigation. 

The early pioneers of mitigation continued to ask property owners and managers for opportunities to dry wet structures. We would even dry wet carpets for free as a demonstration. Eventually, the benefits of on-location drying triumphed. By the 1980s, the property ownership and management industry were getting on-board with the process. However, the insurance industry continued to resist.

The only way to gain insurance industry acceptance was to prove beyond question that location drying is effective. The general contractor vendors added and emphasized the fear of mold as another reason to shun mitigation. The insurance companies remained concerned about hidden long-term damage to the property and potential health risks to their policyholders.  

The mitigation industry sales message continued forward. Demonstrate how on-location drying saves both time and expense, certainly powerful motivators for any business owner client. Gradually, the property industry was getting on board. The insurance industry remained in our crosshairs.

While the words and actions of the owner/operators of small mitigation companies made the work happen, a few big players, and few 'dedicated' salespeople starting to promote on-location drying.

 1990 to 2000 - The Age of Acceptance

In New York City and other large urban centers, the urban myths and false reports circulated concerning mold intensified. Increased litigation from policyholders based upon alleged improper mold remediation practices by 'insurance recommended' contractors attracted national media attention. Sensational mold cases involving celebrities were featured on the television network news. Fear of mold had now become a nationwide phenomenon during the mid to late 1990s. Insurance companies remained hesitant to use mitigation.

The equipment manufacturers and other innovators constructed demonstration test-houses called flood houses as training and education centers. With their Vortex System, the Dewald Drying Academy and Dri-Eaz in the Pacific Northwest (and others) became learning centers. Insurance company executives and adjusters were encouraged to visit and witness the on-location drying process in real-time. By the end of the 1990s, many major insurance companies were showing positive interest because the proof was difficult to ignore.

The IICRC, Institute of Inspection, Carpet Cleaning, Restoration, Certification, ASCR, the Association of Specialists in Cleaning and Restoration (now ROI), and other groups emerged to set scientific standards and educate consumers, including the insurance industry. For example, the IICRC reached out to the medical world, the EPA, chemists, biologists, and others to test and verify Psychometric science, the science of drying. Together, their board of experts produced whitepapers, guidelines, and updated standards as ongoing research generated new understandings.

 During the mid to late 1990s, the major cleaning franchise systems began practicing mitigation. Please understand that Service Master, Servpro Industries, and others had been carpet and specialty cleaning companies for decades. Mitigation was new to them. After hundreds of their franchise operators began performing on-location water mitigation, the insurance companies had to take note.

Mitigation companies were growing in respectability and size. Now professional sales and marketing talent were being hired to confront the three major obstacles that had hindered the path to success for more than twenty years: 

 1- Mitigation must shed the label of being 'new technology.' Salespeople had to be able to explain how mitigation worked and the advantages it offered.

2- Salespeople had to clarify the misunderstandings and false information from construction companies trying to hold their grip on the restoration industry.

3- Salespeople used third-party experts and conclusive demonstrations to prove the science of drying (Psychrometrics) to the remaining insurance company holdouts. 

 Sales Lessons Learned:

?   Target your markets

?   Be professional and persistent with your message

• Demonstrate 
• Use third party confirmation
• Educate
• Sell cost and time-saving benefits to the consumer 

2000 to 2010 - The Golden Age

In the early 2000s, mitigation services continued to gain acceptance as a viable and cost-effective remedy for property disasters. The industry knowledge and capabilities expanded to include indoor environmental specialties such as sewage spills, mold, bacteria contamination, viral infections, biohazards, bed-bug infestation, malodors, and indoor air quality.  

The cleaning chemical and equipment manufacturers rolled out a series of new products for these specialized applications. Simultaneously, the EPA, IICRC, and other authorities issued technical papers and bulletins concerning the recommended operational procedures. 

 Many state governments established CE Classes, continuing education classes, and certificate programs about property damage mitigation, mold, fire and smoke cleanup, and other environmental issues for the real estate, property management, and insurance industries. Restoration companies, including the franchise systems, became authorized presenters of the state-approved classes on these subjects. Educational selling was highly effective. 

 Restoration salespeople talked about their company's latest and best equipment. Route selling became a standard way to promote restoration services by visiting insurance agents, realtors, and property managers. Sales reps invited agents to attend CE classes, chit-chat, and distribute promotional magnets, candies, and other goodies for office employees. In the major metropolitan areas, a marketer from one mitigation company could be leaving an insurance agency and might find themselves in the awkward position of politely holding the door open for a competitor sales representative to enter the agency. 

The insurance companies had established national vendor programs and claims centers. Now the major carriers were insisting their agents send all claims to these centers. Insurance companies felt the need to maintain control of the claim process. Things were changing in the industry. However, the most common promotional tactics included the following:

?      Property disaster chasing

?      Route sales

?      Referral programs

?      Educational marketing and CE classes

?      Networking

?      Business development selling

?      Sponsorship and community events

?      Television and radio advertising

 2010 to 2019 - Transition

 The numbers of restoration companies and franchise systems continued to increase in recent years with no sign of stopping. Now, almost every restoration company of any size has at least one salesperson. The sales message seems to be consistent across the industry, "I'm a nice person, my mitigation company does a good job, hire us." The overall industry advertising echoes the same message, "Our company provides trained and certified technicians, we have the most and latest equipment, and we provide the best service."          

With so much competition is has become difficult to prosper in serving insurance companies. Local agents for the major companies are no longer the Centers of Influence (COIs) they once were. Salespeople also bombarded independent insurance brokers and insurance adjusters.

To complicate matters, property disaster chasing, which had already been popular for many years along the populated east coast, gained acceptance among restoration companies in the mid-west and west coast. Aggressive chasers were signing up fire jobs while the embers were still warm and before the insurance companies could assign the loss to their network of 'approved' vendors.

As restoration selling becomes more challenging, many marketers placed their hopes on their websites, social media platforms, and digital marketing. Sadly, making cute memes and silly videos doesn't yield much in the way of tangible results.

Many restoration marketers have turned their attention toward business association networking, community events, and charity sponsorships in recent years. These activities can lead to business. However, it requires a unique sales development approach to build profitable relationships that will last. The idea of securing business from large commercial and government entities is also appealing. However, there are specific and sophisticated ways to appeal to these markets. Unfortunately, only a few salespeople in any given area have the skills or have been provided with the resources to be consistently successful in these endeavors. Take heart; this book will reveal the secrets of selling to commercial and government targets. For now, let's remained focused on the timeline of the mitigation industry and sales.

As the decade advanced, the impact of the Internet on the selling process grew. Consumers became at ease with shopping and buying online. According to Simple Learn Solutions, 2008, Google introduced real-time SEO analytics that explains how consumers reacted to content. Another turning point occurred in 2015 with the rise of predictive analytics, which was the beginning of target content marketing. 

 Digital marketers armed with data concerning consumer buying habits have been able to sell products and services to highly defined audiences. As consumer screen time increases, more accurate buying data is collected. Several digital marketing associations have determined that adult consumers spend approximately 3.5 and 4.1 hours each day on their cell phones and another six hours or more on their computer and tv screens in 2021. Analytics have determined the best times of the week to post content and send messages to specific audiences.

While marketers are becoming more sophisticated, consumers have also become savvy. Consumers have grown weary of the constant bombardment of sales and advertising messaging. The consumers' defense mechanism is to become more selective. The human brain sorts through the plethora of incoming material quickly by internally asking three simple questions.

?      Do I 'like' this message?

?      Is this important to me? 

?      Do I need to spend time on this?

Research has revealed that this subjective evaluation happens in three seconds or less. It is now clear why so many websites, social media campaigns, and digital marketing are not useful. Bad, confusing media doesn't resonate with consumers' thought processes or their emotional buying triggers. That's because our human brains work hard to repel "junk advertising." 

Salespeople must be aware that during a live meeting, phone conversation, or video conference, the human brain evaluates content worthiness. In-person, an uninterested prospect will tune you out and start thinking of ways to end the appointment. Any in-person sales call that misses the mark becomes awkward and has an unsuccessful conclusion. 

In 2017, the advertising world, digital marketers, and top-tier sales training organizations searched for ways to best connect with consumers. Analytics reported a growing number of consumers who favor a digital-based selling process over live interaction, at least in the early stages of the selling/buying process. Here is why:

?      A properly targeted advertising/digital message can be relevant to the prospect

?      Messages can be concise (People's time and patience have contracted.)

?      The content can be straightforward (unnecessary content causes confusion)

?      Well written and designed messages will hold the attention

?      Multiple messages can be designed and paced to create 'warm leads' for live follow up

 At first, only the major corporations and communication companies pioneered this new understanding of a consumer shift to favor digital selling techniques, or more accurately, blended marketing/selling, combining both digital and live scenarios. 

Up to 2019 and before Covid-19, the restoration industry was relying on these sales techniques:

 ?      Property disaster chasing

?      Route sales

?      Referral programs

?      Educational marketing and CE classes

?      Networking

?      Shift of focus from insurance to commercial

?      Business development selling

?      Sponsorship and community event

?      Social media

?      Yelp and other paid platforms, including pay-per-click

?      Television and radio advertising

 It's worth noting that advanced restoration contractors and salespeople were implementing proactive digital marketing campaigns into their sales regimen.

?      Email campaigns 

?      Text messaging

?      Video blogs 

?      Video conferencing

?      Podcasts

2020 - Suddenly a New Dynamic

 The impact of COVID-19 has turned the entire world of selling restoration services upside down.

In portions of the country, route selling became almost impossible. Insurance agents, property managers, and realtors hesitate to attend in-person CE classes and training classes. Many decisions makers are working from home. 

During 2020 and 2021, Zoom video conferencing and similar platforms saved the day for numerous salespeople and marketers. Prospects and customers are responding to other digital communication such as emailing and text messaging. COVID-19 has accelerated the acceptance of progressive digital selling techniques. The public and salespeople alike have learned there are benefits to engaging with digital and live (blended) sales techniques. These techniques will continue to refine and be with us for many years until the next significant innovation. Of course, face-to-face conversations, networking events, and other inter-personal activities will remain a part of the sales experience; however, consumers now have more choices than ever about how they will shun us or hire us. 

Your Future

By looking back at this brief history of the restoration industry it becomes apparent how sales and marketing changed and adapted the messaging to address the most pressing needs of the time. We find ourselves in another transition. It's up to you to perfect your traditional sales skills and learn the latest pro-active blended selling processes because, if you don't adapt and remain relevant in sales, you lose. 

Written or spoken words matter more than ever because there have also been subtle shifts in the consumers' emotional buying triggers that need to be addressed in our sales materials and presentations.

Clayton A. Barry

Clayton A. Barry is a restoration author - THE XSELL FACTOR and Clients for Life. Clayton and Grace Barry provide restoration business sales hiring, training, and coaching; and strategic business consulting. Contact: [email protected] www.barryassociatescoaching.com