Roofing & related building product distribution company CEO's

How many millions of dollars is your company leaving on the table each year as a result of missed customer product sales?

 

(tens to hundreds of millions of dollars worth, actually!)

 

The Problem

The graph to the right below shows the results of a severe lack of advanced retail and insurance sales and restoration claims process training, P&C insurance industry lobbied for UPPA law, and other hurdles placed in the way of your contractor customers from across the USA that are causing your company to miss out on tens to hundreds of millions of dollars-worth of annual roofing and related building product orders from them.  

   

 

- NOTE TO DIRECTORS, INVESTORS, AND SHAREHOLDERS -

 

--It is also severely limiting or decreasing investor / shareholder values--

 

 

UPPA Law - a major contributor to The Problem

 

While at the same WTS conference where the "WTS John Houghtaling Vs Steve Badger UPPA debate" was held, as one of the country's leading experts on the topic, I presented on UPPA from my perspective as a former general contractor, former insurance/investment advisory company owner, and thirty-five plus year winning Pro Se litigator.  In my presentation, I revealed much of the who, what, where, and why behind UPPA law which gave ample evidence in support of my contention that UPPA is, without question, one of the biggest financial, as well as potentially unconstitutional scams ever perpetrated against the American insurance buying public.  I also taught contractor attendees how to legally navigate around UPPA so that insurance adjusters will want to pay special attention to making sure that their customers property damage claims are fairly and fully paid within a reasonable time period and, in the great majority of cases, without the need for Public Adjuster, appraiser, or attorney involvement.   

 

 

The Solution

The key to true contractor and distributor exponential growth and financial success

 

By Larry Burtis - President/CEO 3RSystems, LLC

 

 

Experience Matters!

Taught from the experienced construction, insurance, and legal perspectives that only 3RSystems, LLC can and does teach, 3RSystems, LLC contractor training is the most detailed, comprehensive, and effective contractor training program available anywhere in the country today.  With 3RSystems, LLC contractor training, Larry Burtis – 3RSystems, LLC President and author/creator of the contractor training program, brings to the table nearly four decades of proven hands on retail and insurance restoration construction industry experience – from installations to sales to GC company ownership to commercial and residential contractor insurance claims process trainer to licensed public insurance adjuster, plus nearly 20 years of concurrent in depth insurance/investment industry advisory experience as president of 3RS Wealth Creation Systems.  While there, his financial advice was sought out by leaders of some of the country’s most well-known companies including Bruce Dayton of the Dayton-Hudson Corp/Target Corp, MacKay Envelope (Harvey Mackay), Southside Lumber Company, Jacob’s Trading Company, and Anthony Adducci’s Technology Enterprises Venture Capitalists.

Along with the experience mentioned, Larry has also achieved, with the help and support of several Supreme Court Justices and other legal experts over the years, a winning Pro Se record against high profile law firms and their attorneys in complex, mostly consumer fraud related legal disputes involving various government and multi-million dollar corporate entities and individuals.  With that varied experience, Larry is able to offer contractors and their sales reps (and building product distribution company executives, district and branch managers, and their sales reps) a multi-faceted proven and powerful top down training perspective that is unmatched anywhere in the industry.  The end result being a training program that advances both retail remodel and storm damage restoration contractors who learn the program to both financial and success levels never before achieved.   

 

What separates the 3RSystems, LLC training program from all of the others?

Starting around 2005, a relatively new insurance claims repair adjusting program known as Xactimate became the primary program used by P&C insurance employed insurance adjusters to estimate repair costs of their insured customers claims.  Xactimate which is, BTW, owned and controlled by the same organization that calculates insurance premiums (typically high) and claims payouts on their insured customers claims (typically far below real, true, and accurate (RTA) free market pricing), was one of the P&C insurance industries first steps of many designed to attempt to control claims pricing. Having bought into the claim made by P&C insurance that it made sense and would work to their advantage, to their detriment, thousands of storm damage contractors from across the country began using Xactimate to estimate their customers storm damage repair pricing.

In spite of the introduction of Xactimate, up until the fall of 2010, the insurance restoration process had remained a relatively simple one.  In September of 2010 however, a new law was aggressively lobbied for by the P&C insurance industry that would prohibit storm damage restoration contractors from, as they had previously been able to do, negotiating the pricing of their insured customers property damage claims.  The law – known as the Unauthorized Practice of Public Adjusting (UPPA) law, which is now on the books in nearly every USA state, allows P&C insurance to, as Rutgers University law professor Jay Feinman, author of the book on the subject entitled, “Delay, Deny, Defend” described it, – “delay, deny, and defend” against paying insured customers legitimate property damage claims indefinitely - if at all.

The two pronged benefit to P&C insurance companies?  #1 – the longer hundreds of millions to billions of premium dollars which should have been paid out on insured customers claims are withheld from them – each and every year, and, ultimately their contractors, the more money the insurance companies make on their investments.  #2 – In delaying claims payments for as long as possible, insured property owners often become so distressed, frustrated, and fed up with the process, they simply give up the fight and accept whatever low ball and incomplete settlement their insurance companies offer and move on.  The end result to the benefit of P&C insurance companies?  They retain, in house, hundred’s of millions to billions of dollars every year in claims payments that should have ultimately been made to their insured customers contractors.  Included in those amounts are payments that would otherwise have been used to purchase all of the roofing, siding, and related building products needed to fully complete the repairs.    

 

The current and growing emphasis on "company culture" and "team building" is, without question, key to the growth and success of any company.  However, in regards to construction companies that contract with insured property owners to repair their insurance covered property damage, property & casualty insurance companies - the companies that regularly fail to honor their promises to the contractors customers - care not one bit.  LMB

 

From the HUFFINGTON POST in 2011

“Insurance Claim Delays Deliver Massive Profits To Industry By Shorting Customers”   By Mollie Reilly and Max J. Rosenthal

From the article – ‘Unlike many other businesses, the insurance industry is bound by law to act in good faith with its customers. Because of their protective role in the lives of ordinary citizens, insurers have long operated as semi-public trusts.’  But since the mid-1990s, a new profit-hungry model, combined with weak regulation, has upended that ancient social contract;  ‘Claims has been converted into a money-making process,’ said Russ Roberts, a New Mexico based management consultant and former business professor at Northwestern University who has studied the insurance industry’s evolution from a service business to a profit-driven machine.

From the time we were kids, most of us we’re taught that we must always, never question, but rather, just accept and obey the rules and laws placed over us by those in authority.  Rules and laws that are put in place to protect us and keep us from harm are fine – as long as they are truly fair and just.  When they are not however, as is the case with UPPA, and they harm one party or parties (insured property owners, their contractors, and their building product sellers) while unfairly favoring another party or parties (P&C insurance), they and the ‘authorities’ behind such corrupt rules and laws need to be challenged.  The problem for all other trainers is that, unlike 3RSystems, LLC President Larry Burtis, none of them possess the proven high level and powerful combination of construction/insurance & investment/legal experience needed in order to know how to effectively make the challenge.  

The "Oracle of Omaha", otherwise known as Warren Buffet, once said, “Conventional wisdom is often long on convention and short on wisdom”. Following is an overview of the current and troublesome restoration industry conventional wisdom that fits Buffets description, now being followed by the great majority of insurance restoration contractors.  Lacking substantive and advanced insurance claims process training, lacking knowledge of what really goes on behind the P&C insurance industry curtain, and operating from a bottom up mindset, most contractors, not knowing where to turn for help, and, having, in effect, allowed P&C insurance to rewire their thinking to wrongly believe they have no choice, simply accept and follow the current status quo/conventional wisdom insurance industry narratives – and their “rules”, primarily, 1. MUST use Xactimate (or Symbility), 2. Per UPPA - MUST not negotiate, 3. When you hit the UPPA wall, MUST refer your customer to a PA, an appraiser, or an attorney, and 4. MUST supplement, supplement, supplement – then, carry on, and live with the financial and other negative consequences, and so they do.

My top down training approach however, teaches contractors how to legally and effectively work through and around, and avoid those self and P&C insurance industry imposed hurdles – thereby allowing contractors to achieve much faster repair job completion with all materials ordered and at real, true, and accurate (RTA) free market pricing that is relative to the premiums paid by the insured property owners.  It is, in fact, the same top down approach I used over the years to successfully move the CEO’s of State Farm, Allstate, Nationwide, and Farmers, among others, to stop the nonsense and fully and fairly pay the claims of my insured customers forthwith.  Once such an approach is learned and internalized by your contractor customers, the power is then transferred from P&C insurance to the contractors (your customers).

As evidence in support of that claim; As said to one of my contractor trainee's by the then Nationwide Insurance Company claims head executive who appeared at a claim site in a suit and tie to review a disputed claim - Columbus, OH, 2003;  "Are you sure everything on Larry's damage list is included and paid per his estimate, because I don't ever want to have to hear about him again from my CEO". 

 

Challenging their rules and changing the paradigm

1. MUST use Xactimate:  Not all restoration contractors use Xactimate to estimate the costs of their customers property damage repairs. But for those who do, which is the majority, without going into detail, using the program often puts them at a costly disadvantage.   Most use Xactimate because they have bought into the myth that there is an advantage to doing so.  I show and teach to contractors how using Xactimate is, rather than an advantage, akin to shooting oneself in the foot with the P&C insurance industry's own gun.  With that in mind, what then, is the solution?

 

3RStimax©  – The Pro Contractor Xactimate / Symbility FREE MARKET Repair Pricing Alternative

(click on image to enlarge)

 

This is an easy one – in the above graph, compare the claim “final” offers made by insurance company adjusters in the far left column ($72,500) to the Total claim recovery achieved with 3RSystems, LLC's proprietary 3RStimax© shown in the right hand column ($270,214) – an additional $197,714 claims increase total on just those seven jobs (average of $28,246.86 per claim).  All of the claims were completed and fully paid much faster – without using Xactimate, without violating UPPA, without demanding appraisal, without supplementing, and without the customer having to hire a Public Adjuster or take legal action.  The end result – per job profits and per job roofing and related building product orders were dramatically increased.    

2. Per UPPA, MUST not negotiate: P&C insurance industry lobbyists were able to sell state by state insurance and banking committee member legislators on UPPA by claiming that preventing contractors from negotiating the pricing of their customers property damage claims would prevent contractors from "ripping off" insured's and P&C insurance companies.  Although P&C insurance could offer no substantive across the board proof that their claims had any merit, UPPA was passed into law.  By prohibiting that which contractors had been doing for as long as insurance has been around - negotiating their customers claims pricing, UPPA gave P&C insurance license to delay claims payments indefinitely and cause far too many insured customers, as well as their contractors, to give up the fight.  The end result being that hundreds of millions to billions of owed claims dollars are never paid to insured's - and the necessary roofing and related building products are never ordered.  3RSystems, LLC training teaches contractors a highly effective and paradigm changing (and legal) work around that allows them to move their insured customers claims from "Filed to Final" without having to concern themselves with violating the law.        

3. When you hit the UPPA wall, MUST refer your customer to a PA, an appraiser, or an attorney.  The great majority of residential claims initially fall under $20,000.  When a contractor hits what I call "The UPPA Wall" and can move the claim pricing no further - just as P&C insurance intended, the insured customer has three other options.  #1 is to hire a Public Adjuster - which, while doing so will likely increase the final claim total, it will also further delay final settlement of the claim - often by many months if not years.  Unfortunately, and P&C insurance knew this would happen when they wrote the UPPA law, not all, but most Public Adjusters will turn down disputed insurance claims under $35k.  The only options then left for the insured customers are to either demand appraisal or hire an attorney to prosecute the claim. 

Neither choice is a good one because either will further delay, often by many months, final claim resolution and will cause insured's to pay additional money - while neither can ever guaranty the desired outcome.  3RSystems, LLC contractor training however, teaches contractors how to set their customers claims up from the very beginning so that insurance adjusters and engineers who might otherwise think it wise to play the "Delay, Deny, Defend" claims game talked about in Professor Feinman's book previously mentioned, will have every reason to want to do everything they can to make sure that the 3RSystems, LLC trained restoration contractor's customers are made both happy and whole from the very start of the claims process.  The customer and the contractor are then able to avoid most if not all of the usual and costly delays and unwarranted denials.        

4. MUST supplement, supplement, supplement:  This relatively new phenomenon is one where many contractors, in order to secure a repair contract, accept whatever underpriced claim payment an insurance adjuster offers.  Once an inadequate repair price has been accepted, the contractor will then begin asking for additional items, too often after the repair work has been started, that should have been made part of their original damage scope, but were not.  In doing this, the contractors themselves cause their customers claims to be further delayed.  3RSystems, LLC's advanced contractor training however, teaches contractors how to, by using our exclusive and proprietary 3RSystems, LLC "What to look for / What to charge for" outline, prepare their customers loss repair scopes so that every damaged item is included and priced at real, true, and accurate (RTA) free market pricing - prior to the contractor beginning the repairs.  

 

 

3RSystems, LLC Contractor Training Results

 

 

Proposal

In order to take back control of that Property & Casualty insurance industry hold on restoration contractors previously mentioned, and help them (and you) to sell tens to hundreds of millions to billions of dollars more of your roofing, siding, and related building products, 3RSystems, LLC offers the following:

Option 1. Over a three year period and for a pre-agreed to per appearance fee, 3RSystems, LLC President Larry Burtis will appear three to nine times per month over each year ten month period at your company's branch offices. There, he will present a substantive overview of our proven, powerful, and one of a kind restoration contractor insurance claims recovery process training program to your branch managers, their staff, and your valued contractor customers. Each attending contractor will be given a free 3RSystems, LLC training program + 3RStimax©. (MAX number of FREE programs given at any one branch is limited to thirty-five = $27,998.25 USD retail value at $799.95 USD each). Estimated presentation time with Q & A = two to three hours.

NUMBERS/PROJECTIONS - Option 1.

Conservative post 3RSystems, LLC training year one estimated per contractor sales increase = $200,000 USD.

 

Option 2. 3RSystems, LLC will sell all rights to the program to an approved roofing and related building products distribution company which will give that distribution company exclusive rights to provide the program to their contractor customers for a nominal fee paid to the distribution company or give the program to them outright at no charge (recommended). 3RSystems, LLC will also aggressively promote the program to contractors on behalf of the purchasing distribution company. After the conclusion of such sale, at the national convention/conference of the purchasers choice, with payment of a nominal fee plus expenses, 3RSystems, LLC President Larry Burtis will personally introduce the program to the purchasers contractor customers along with former Green Bay, Wisconsin native UK and USA soccer Super Star Jay Demerit who will share with the purchasers contractor customers (and their soccer playing kids) one of the most amazing and inspiring sports success stories ever heard and share how that success relates to also achieving top level success in the insurance restoration contracting business. Larry will also provide free virtual support of the program to all participating contractors for a period of one full year from date of purchase.

NUMBERS/PROJECTIONS - Option 2.

Conservative post 3RSystems, LLC training year one estimated per contractor minimum sales increase = $200,000 USD.

There are currently an estimated 253,000 roofing contractors in the US. Distribution company purchases rights to full program at agreed to one time purchase price. Of those 253,000 US roofing contractors, fifteen percent of those contractors (37,950) either purchase the program from the distributor for a nominal fee or are given the program outright. Although each 3RSystems, LLC newly trained contractor should easily exceed $1,000,000 USD in sales in their first year, each roofing contractor increases their annual post 3RSystems, LLC training year one sales by an estimated minimum $200,000 USD. Total increase for all 37,950 roofing contractors at $200,000 USD per = $7,590,000,000B USD. Estimated increased distribution company roofing, siding, and related building products orders by the newly 3RSystems, LLC trained contractors at an estimated 31.5% of total customer sales = $2,390,850,000B USD.

 

Either way...your Return on Investment (ROI) = exponential!

Your directors, investors, and shareholders - and your thousands of loyal contractor customers will thank you!

 

A look into the future of the insurance restoration industry

As illustrated above, over the past couple of decades, the P&C insurance industry has succeeded in essentially rewiring the thinking of insurance restoration contractors (your valued customers) to follow a carefully planned insurance claims recovery process that provides all of the benefit to the P&C insurance industry and zero benefit to the contractors and their customers.  As an aside, Managed Repair Programs (MRP's) have proved to be a dismal failure and after all is said and done, caused many contractor participants to become frustrated then leave the business altogether.  Once educated on the current realties of the restoration business, younger Gen Y and Gen Z individuals, who may have, at one point, considered becoming contractors, will consider other unrelated career pursuits.  As, due to the current state of the industry, the pool of potential new contractors begins to rapidly decline, who then, will be there to purchase your roofing, siding, and related building products?    

In every case, contractors who I have discussed the above issues with have agreed that their roofing and related building product distributors need to take them more seriously and make available to them, substantive and advanced training that will help to turn the industry around and allow all of the involved parties to take back control of the process from the P&C insurance industry.  Using the same 3RS Review, Reposition, Recapture© financial concept as I've taught to leaders of some of the country's biggest and most well known companies in America over the years, with 3RSystems, LLC advanced contractor training - the only contractor training program in the country that can and does teach the process from a powerful and proven construction/insurance & investment/legal perspective, is the program that will help you and your distribution company, as well as your many thousands of loyal contractor customers to achieve the above stated goal.   

 

Nothing comes from waiting...

The 2024 storm season is now upon us.  The longer you, as CEO of your roofing and related building products distribution company, delay in putting the above proposed and proven solutions to the problem into practice, the more money your roofing and related building products distribution company will continue to leave behind - each and every day.  In order to begin recapturing those tens to hundreds of millions of dollars-worth of annually missed roofing and related building product sales, advance your company five years ahead of your competition, and keep your company's investors and shareholders from pulling out the pitchforks, you need to take positive action - in the present. 

To learn more and to learn how, contact 3RSystems, LLC President Larry Burtis through the Contact link shown at the top of the page.   

 

Sincerely,

 

 

 

Larry M. Burtis

President/CEO - 3RSystems, LLC

President/CEO - Focus Public Adjusting, LLC

President/CEO - Independent Construction Contractors of America (ICCOA)

Associate Member - Contractors Association of Minnesota (CAM)

Board Advisor and Regulatory Compliance Administrator - American Policyholder Association (APA)

Recipient, 2020 American Policyholder Association (APA) Consumer Advocacy Leadership Award

 

 

Disclaimer:  Neither the Contractors Association of Minnesota (CAM) or the American Policyholder Association (APA) have any involvement in this program.

 

3RSystems, LLC is going global!

Globe Joypixels GIF - Globe Joypixels Spinning - Discover & Share GIFs
Canada/UK/Australia/New Zealand roofing manufacturers/suppliers: Although, in your countries, the roofing & related insurance restoration process differs in many ways from that of the USA, what your contractor customers will learn from the program will prove invaluable to them as well as you over the short and long term.