You might be thinking about adding the Esporta Wash System for soft content processing but have several questions and concerns. As part of our ongoing training and support before and after the sale, let’s address some of the more “common” questions we have from prospective Esporta operators.
Let’s take the “guess-work” out of the equation so you can move forward with confidence in your decision to add both soft contents, high-profit revenue and additional market share to your company!
Yes, depending on your geographic area, 20-33% of claims will have a direct vendor program with the carrier; and the soft contents, for that job, will already be assigned. But this is not a reason not to add soft contents, it’s one of the many reasons TO add soft contents. It’s a simple math equation; Before program work, you were able to refer 10 out of 10 jobs to a restoration drycleaner and received a 10% referral. If all 10 claims were average size, you made $6,000. But now they get 3 out of the 10 claims on their own and, of course, don’t pay you a referral on those jobs. However, they are still very happy to take your 7 job referrals and pay your 10%, so now your “profit” is down from $6,000 to $4,200.
But, if you took the 7 “average” claims you do control and process them using the Esporta, your profit would soar to $21,000. So, the opportunity isn’t in quantity, it’s in quality.
You don’t need a lot of space. But let’s look at this from the other side of the “space” equation;
We will use an analogy and we need your imagination. First, the cast of characters;
The Rich Uncle is an adjuster, the Nephew is your contents company.
Your “Friend” is the restoration drycleaner, the Pick-Up Truck is hard contents.
The Ski Boat is soft contents, the Garage is your facility.
Ready? Your “rich uncle” calls you and tells know he’s decided to give some things away to his family since he’s older and no longer using them. You’re the lucky “nephew” he’s decided to give his “pick-up truck” and “ski boat” too. Now that’s pretty amazing that your phone rings and you are offered both a “pick up truck” and a “ski boat.” But you start thinking that the “pick up truck” will fit in your “garage,” but not the “ski boat.” So, you let your “rich uncle” know that you’re very appreciative and would love the “pick up truck” but you’re going to give the “ski boat” to your “friend.” Now your “friend” is willing to let you come to the lake and use the “ski boat” one weekend a month in exchange for giving him the “ski boat,” and you’re perfectly fine with that arrangement. So, you meet your “friend” and your “rich uncle” at the marina, unhook the “ski boat” from the “pick up truck” and happily hand it over to your “friend.”
Why wouldn’t you simply rearrange your “garage” or add a freestanding carport to the front of the garage and keep the “ski boat” all to yourself? Coincidentally, the amount of space you’d need for the “ski boat,” (10 X 20), is the same space you’ll need to process your own soft contents. Sure, it’s difficult to imagine the flow of soft contents that isn’t there yet, but imagine if the “ski boat” were at your facility; how easy it would be to accommodate it very quickly. Visualize the “ski boat” every time you call your “friend” to a loss
site and how easy the “ski boat” could be all yours.
It is always a good idea to prioritize business purchases. You may be thinking about several major business investments; new trucks, drying equipment, ultrasonic equipment or the Esporta Wash System. But how do we decide in what order these purchases should be made? I would suggest the purchases should be divided into two categories; purchases that make you more efficient; ones that save you money, and purchases that generate more revenue; ones that make you money. Purchases that save you money take longer to “pay for themselves” than purchases that make you money, a major factor when considering ROI. A truck purchase would enable you to “save” money on truck rental, ultrasonic equipment would “save” you payroll, additional drying equipment would enable you to generate revenue by marketing commercial jobs. But the Esporta purchase is unique in the ability to generate more revenue from claims you are already servicing. This single dynamic makes the Esporta purchase one that pays for itself much faster, in addition to opening up more claims and more types of claims for the rest of your content’s division.
Relationships, especially long-term relationships, are very important, but business comes before relationships and business decisions should never be personal. But if they were, let’s take a closer look at the “relationship” you have with your restoration drycleaner. As you know, restoration drycleaners are working closely with the carriers for direct assignments and “cutting you out” of a referral, while still “expecting” the work you control to be referred to them. After all, you are in a relationship, right? But, isn’t that “expectation” the same thing as your boyfriend/girlfriend telling you they want to “date other people,” but YOU can’t. Why is that ok?
As far as the “hassle” of textiles, they are no more a hassle than any other content item you clean and Esporta pre-programs the wash cycles, and works with your staff with onboarding and ongoing training that makes soft content cleaning easier than processing hard contents. Ours is a partnership that makes soft contents processing much less of a “hassle” than the contents you are cleaning now.
As we have mentioned, the Esporta purchase is not just a transaction, it’s a relationship, and, unlike the relationship you have now with your restoration drycleaner, it is a supportive and exclusive relationship. We offer extensive onboarding, ongoing training, and wash cycles that are pre-set and monitored, making it very difficult to “ruin” an item and impossible to “ruin all this stuff.” If your “guys” sort and wash clothes at home, they can easily learn to sort and wash soft contents in the Esporta. If carelessly dropping a box of dishes doesn’t keep you from cleaning hard contents, there isn’t a risk greater than that, that would keep you from processing soft contents. After all, if I drop a plate of grandma’s china, it breaks, if I drop a shirt, I just pick it up and keep going!
Russ Jacobs, Quality Assurance Manager, Esporta Wash Systems Inc. Bio:
With over 30 years of experience in contents restoration, Russ works closely with Esporta Certified Operators to establish “best practices” for soft content processing, inventory and billing standards and customer service goals that meet and exceed customer expectations.
Russ Jacobs is a 3rd generation drycleaner who grew up in the family business in Memphis, TN. After making a career in the retail market for 17 years, Russ discovered insurance restoration work in 1992. In 1996 Russ went from doing fabric and textile restoration work part-time to opening the first facility in the mid-south specializing solely in fabric and textile restoration: Crescent Restoration. Russ also spent 10 years with a national soft content franchise restoration company before working in the inventory pack-out software industry, and now with Esporta for the last 3 years.
Russ’ unique perspective, both from the inside as an independent contractor and franchise owner, and now marketing and training content companies and carriers on the development and implementation of pack-out and claims management software, allows a view of our industry that will help Esporta Certified Operators see the trends and proactively plan for a future moving forward in soft contents restoration.
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