Are you taking on costs based on an insurance company’s estimated price? You may want to double-check the job costs and markup to make sure that you aren’t incurring losses. Clients will often come to you with a price determined by an insurance company. This price is often lower than the cost a project will actually take.

How you respond to what the insurance company adjuster says will largely determine if there is any damage to your relationship with your customer. You first need to explain why the adjuster's quotes are so low ... If you're doing insurance repair work and run into an adjuster who says you're overcharging, you need to explain how insurance works. At the same time, explain that your job is to get the home or building back to the way it was before the loss. Don't worry about looking bad to your client if they're told by an adjuster that your price is considerably more than another contractor's price.

Markup & Profit writer Michael Stone answers questions from coaching clients regarding insurance repair projects. He recommends that you ask for adjuster’s estimate, then do you own estimate, and compare it with that of the insurance company. This, Stone writes, is one of the best ways to get an accurate scope of the work and price.

Read more >