A big question for restoration companies looking at getting into in-house soft contents restoration is "How do you charge for soft contents restoration?"  When you consider that soft contents and textile restoration is the highest volume category of contents on a personal property claim (source: 2016 Xactware Property Report), this is a good question to know the answer to.

In-house soft contents restoration is a very lucrative business and when you do a good job of it, you can be a great partner for insurers by saving them literally thousands of dollars per claim.  This article explains how you should be pricing your soft contents restoration services so that you can achieve both profit and a customer that is satisfied with the price you have charged them.

Learning From Their Mistake

Many restoration dry-cleaners have earned a bad reputation for over charging for their services.  One possible explanation for this practice is their limited breadth of services which causes them to try to squeeze every possible dollar out of a job.  Conversely, full service restoration companies are earning revenue on a wide variety of services which allows them to take a more holistic approach to billing practices.  A common cause of drycleaner's "over charging" is because they are over using line item pricing.  More on line item pricing below.


Defining Pricing Options

Line item - Xactimate line item billing is a full service charge per item, using the "CDC" category within Xactimate.

By the pound - Xactimate price for one pound of wash and fold laundry.

Selecting the Pricing Option: Line Item

Here is when you should be using line item pricing:

  • Garments and laundry that require finishing
  • Garments that were in the home, at the time of the loss, on a hanger and are being returned to the home on a hanger
  • Shoes, bags, stuffed goods, sports equipment, and other specialty items

Selecting the Pricing Option: By the Pound

Here is when you should be pricing by the pound:

  • Laundry and garments that are washed, tumble dried, folded, and boxed.

Line item billing will cost more than by the pound billing because it is paying for a higher level of service.  In addition, line item pricing will take more time to manage administratively than per pound billing.

When you take this balanced approach to pricing your soft contents restoration services, you will generate healthy revenue and profits while saving the insurer thousands of dollars per job.

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