Claims Down, Costs Up—Now What? Restoration Strategy w/ Philip Rosebrook

I grew up in restoration, started in the trenches in 1988, and spent decades helping companies build vision, process, and execution. Over the years one clear truth has emerged: the firms that win are not the ones with the fanciest trucks or the loudest ads. They are the ones with solid leadership, repeatable systems, and a deliberate plan they stick to.

The single trait that separates winners from the rest

Leadership. Not marketing spend. Not luck. Real leadership creates clarity, alignment, and follow-through. That means:

• Having a clear mission, vision, and values that people want to follow
• Turning long-range goals into quarterly and 90-day execution plans
• Creating meeting rhythms and accountability so plans actually get done

When leadership is missing you get reactive chaos: managers chasing emergencies, priorities set by whoever shouts the loudest, and projects started and abandoned. Leadership fixes that.

From reactive chaos to a 90-day execution rhythm

Being reactive is the first symptom of weak leadership. The cure is discipline:

1. Create a long-range plan (3–5 years).
2. Break that down to annual targets and a 90-day plan of priorities.
3. Run consistent weekly and quarterly meetings to measure progress and remove obstacles.

Helpful frameworks include EOS, Rockefeller Habits, or Scaling Up. I don’t follow any one system religiously, but I use the core principle they share: simplify strategy, align people, and execute with a repeating cadence. If you don’t create the time to zoom out—someone else’s crises will set your agenda.

Protect profit: budget jobs, finish fast, bill fast

Profit protection is practical, not mystical. A few habits will protect margins and preserve cash:

• Budget every job and plan labor and materials up front.
• Manage timelines so work finishes quickly. A dragged-out job evaporates margin.
• Bill within 24 to 48 hours of completion whenever possible. Fast invoicing = faster payment and higher likelihood of collection.
• Track job-level profitability so you know which verticals and service lines truly pay.

Claims waiting on payments are a common complaint. But often the real problem is internal: slow or missing invoices, no follow-up, or poor handoffs. If an adjuster has a stack of claims, the invoice that arrives promptly and cleanly gets paid first.

“They don’t ask.” If you notify payors, submit clean invoices, and follow up, claims will get closed faster. Put internal systems in place first, then fight external obstacles.

Cash is the oxygen—focus on collections and margins

Claims are down in many markets while costs and inflation continue to pressure margins. Borrowing costs are higher and capital is more expensive. That makes collections and cash preservation critical.

• Protect margins by tracking direct and indirect costs of mitigation work (equipment, 24/7 staffing, training).
• Improve AR processes: bill quickly, follow up, automate reminders, and measure days sales outstanding.
• If you must borrow, do so knowing the true cost and only after exhausting collection improvements.

Market snapshot: claims down, costs up, catastrophe unpredictable

Trends I’m watching:

• Everyday claims volume has been lower year over year in many regions; occasional catastrophe events spike activity.
• Inflation on materials and labor remains a pressure point. Fuel may ebb, but other living costs and wages are up.
• Catastrophe patterns change rapidly—keep an eye on weather models—but don’t build your business assuming steady catastrophe revenue.

If your revenue model depends heavily on one channel—especially catastrophe work—you expose yourself to swings. Protect your capital, optimize operations, and pick lanes intentionally.

People strategy: hire for balance, not clones

Owners tend to hire versions of themselves. That doubles strengths and doubles weaknesses. The alternative is to build balanced teams that complement each other.

• Use validated tools like DISC, Kolbe, or Caliper to understand how people operate and what roles they fit.
• Match personalities to responsibilities: you do not want your finance team built like your sales team.
• Make profiles visible in meetings so people understand each other and communicate better.

Practical tip: if you hire for a vertical (property management, schools, hospitality), find someone who knows that world and bring their relationships into your team.

TPAs, vendors, and choosing your lane

Third-party administrators and vendor programs work for some companies and not for others. The key is to be deliberate:

• Decide if you want TPA volume and build systems and margins to support it, or stay out and focus on direct channels.
• Don’t start-stop programs. Pick a lane, commit, and invest in the operations and quality control to keep that business.
• Measure unit economics for each channel so you understand true profitability per job source.

Some teams thrive on TPAs because they have tight systems. Others avoid them entirely and build different growth channels. Both paths can work if executed consistently.

Why private equity loves digital leads

Private equity places a premium on direct, scalable lead channels like SEO and paid digital because they are repeatable and can be scaled across markets. Digital acquisition offers three things PE owners value:

• Predictability and the ability to dial volume up or down
• Transferability across geographies
• Data and attribution that helps optimize cost per acquisition

That does not mean digital leads are easy. Conversion rates, average job size, and quality vary. But the scalability makes them attractive to buyers and investors.

Referral and vertical playbooks: how to land property managers, plumbers, and more

Referral programs and vertical marketing work best when you treat them like a business initiative, not a hope. Here’s a simple playbook:

1. Choose the verticals you want to serve: property managers, plumbers, schools, healthcare, hospitality.
2. Map the decision makers and referral partners in that vertical. Find people with relationships and hire or partner with them.
3. Design value propositions: what do you give the referrer and why will they choose you over others?
4. Build SOPs for intake, response times, billing, and reporting so every referral has a consistent experience.
5. Measure and iterate. Track cost per lead, close rate, job margin, and lifetime value from each vertical.

Be careful with paid lead-fee programs. In some markets plumber leads can cost a lot. If a lead costs $1,500 and the total job is $3,000, you must fully understand margin after including all overhead.

Execution matters: get the work right before you chase volume

It is easier to get a first job from a new channel than to get the second if your production team fails. Make sure:

• Your production process and quality control are dialed in.
• Field teams understand service expectations and documentation standards.
• Customer experience drives referrals, repeat business, and claims closes.

One bad job can undo months of marketing effort. Put production excellence first.

Meeting rhythm and delegation

Structure works. At scale, companies run two types of leadership meetings:

• Operational meetings for the front lines to solve day-to-day fires.
• Executive leadership meetings for longer-range strategy and cross-department issues.

Schedule meetings where you will not be interrupted. Hold people accountable. Delegate decisions and let people learn by doing—mistakes are part of growth if you coach and course-correct.

Consistency is the competitive advantage

Whether you build referrals, cold-call property managers, dial in SEO, or sign TPAs, consistency over time wins. Expect effort to take months or a year to pay off. Set expectations internally, maintain the rhythm, and measure consistently.

“What got you here won’t get you there.” The systems and behaviors that built your current size will not automatically scale. Be intentional about what changes as you grow.

Action checklist: what to do this quarter

• Run a leadership meeting to confirm 90-day priorities.
• Audit job-level budgeting and invoicing cadence. Aim to invoice within 24–48 hours.
• Map your lead channels and measure true margin by channel.
• Decide which lanes you will pursue and commit to a consistent plan for those lanes.
• Use personality profiling to balance hires and clarify roles.
• Protect cash: tighten collections, review borrowing needs, and control discretionary spending.

Further resources

For training materials, templates, and marketing resources check restorationonline.com and businessmentors.net.

Final thought

Restoration is a service business at its core: we restore lives and livelihoods. That purpose is a powerful motivator for teams and customers alike. Pair that purpose with disciplined leadership, clean operations, and consistent execution, and you’ll have an advantage when claims are down and costs are up.