[Lavinia]

does anyone do flood damage work alongside there carpet cleaning, if so is there a reasonable amount of money to be made after doing all the courses and buying all the equipment? whats the best way to get the work once you have all the equipment? many thanks for any advice and info.

[John Kelly]

At the moment I wouldn't bother. The industry is on its knees primarily because the insurance companies are cash settling a large proportion of their claims.

[Paul Moss]

Aviva are now training their own guys up to do the work also. The money days of flood work are now gone.

[Len Gribble]

A pretty Penney was to made in the hay day but in a claim/throw away society now


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[Nick Attwood]

The money and claims are not what they were 4/5+ years ago. As John says a lot of cash settlements. Although I personally believe it will come full circle.

The insurers used to cash settle years ago, this cost them money as the PH's became wise and saw it as an easy way to get a couple of quid. Then the insures became wise so looked at new ways of settling a claim.

This was when the restoration industry took off and the money was good. After the floods in 2005 I know a lot of insurers looked at how they did things with regards to settlements. Some if not most have gone back down the route of cash settlement, in another few years they'll try something else again which will probably be restoration again.

AVIVA as Paul says are training there own guys, but AVIVA have always been out there!! They had there own preferred supplier for building works "ASPREA" in I think 2009/10 AVIVA made a big move and bought the building company! There guys were getting BDMA training and so on.

The work will I think come back, not necessarily at the same rates "££" but it may take some years. Not an industry I would invest in or spend time in if I hadn't already done so.

PS. These are MY opinions, other people may think differently.

[John Kelly]

The problem is Insurance companies are investment companies not house and car repairers. They use your premium to invest in the markets and this is the core of their business.
They come under the same FSA regulations as the banks and have been told by the government to re-capitalise so they don't have to be bailed out.
Cash settling allows them to settle the claim at a much reduced price over what the damage would actually cost to repair. This is obviously saving them a large chunk of money.
Its just the same as the banks and building societies refusing to lend money.
Big problem and at the moment there doesn't seem to be any end to it.

[Nick Attwood]

Totally agree with what you say John, BUT I'm sure it will come to an end sooner or later.

Like I said and if you remember back insurers used to cash settle, up until the late 80's, but like now this was costing them, so they changed to restorers which was then costing them also (some of the franchised networks were a big part in over scoping etc), so they have gone back to cash settlement which again will cost them!!

I think the work will come back it just may be some years, just need to diversify in the mean time and not invest to much until such time can justify.

[Lavinia]

thanks again for all the advice. I remember back 10 years ago when i worked for a chemdry franchise their was always money in it but i guess things have changed over the years. I am just looking at other avenues i can go down with my carpet cleaning. Work has been a lot slower over the past year and need to add new skills to fill the gaps. if there are any subjections it would be good to hear them.

[Simon@arenaclean]

I would go back to my customer lists (if you have not all ready done so) and hit them with a mail shot/offer and take a look at your marketing strategy. Starting to branch out can mean investment where as at the moment securing cash flow/profit would be more important to me. There is a saying of gift horses and mouths and on such occasions you can grab the reins but diversification can be a distraction.