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Rich Peet
USA
2 Posts |
 Posted - 09/22/2003 : 22:17:08
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I introduce myself as a lurk of long time. Sometimes a true Cat adjuster, sometimes a true IA, and sometimes a true Co. A. And this is why I have been in lurk and not post mode.
For a number of years I have counted on Cats to complete my year’s income. Not as Phil but as Stan.
If there are others out there like me they know how it is making the base year on a few different clients that have different needs from year to year. Counting on a few clients that come to need someone who has experience and came up short and then have a project or event.
I would appreciate it if those reading this could comment on what percent of gross sounds right to contribute in search of seasonal Cat work toward overhead, certifications, training and the like. In the past I have decided to tithe and nothing more.
But here I sit on standby. Maybe it is time to stand down and re-examine what it means to be on standby with an individual company. To examine again what it means to be held to pay hostage money for certifications (ie training) not used, and licenses not utilized. To participate with companies who demand money for “training guides and classes” for “certification” and governments who will not acknowledge other neighboring state licenses apparently only to secure profit. So much for the bitter side.
I wish all those in the current Cat good adjusting to you and hope all goes well for each of you. Understand that you did something right to have had it come together to be where you are and make good use of the limited time you have to do what you can. And I hope all of you work safe and feel fragile while you do.
Rich Peet
Aka “good swamp muck”
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CCarr
Canada
1200 Posts |
Posted - 09/22/2003 : 23:20:28
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Rich, I would tend to think that it is very difficult to answer your question in terms of a percentage of gross income to incur as a cost of maintaining a proper status of a seasoned and working adjuster (non-staff).
If one was to consider themselves as a true independent contractor operating as a business, one would incur costs for overhead, professional status (certifications & training), and marketing - to just think of the basics; whether you left your "office" or not for deployments.
Overhead can come in many models and cost variables, covering "office" space (normally home office other than long distance deployments), office and mobile equipment, various communication devices and modes, a vehicle at the ready, and all the requisite insurances purchased and paid for. On a true cost basis, would a ballpark of $1500 per month, or $18000 per year be realistic?
Professional status through certifications and required training has direct and indirect costs. With the travel, food and accomodations cost as the principal component of the indirect cost, would a ballpark of $2000 per year be realistic?
Marketing one's self as an independent contractor also comes in many varieties and styles. I'll throw in one convention a year, some mailings, lots of long distance calls and locally within one's home base area some lunches and a bit of golf etc. I personally wouldn't want to exceed $2000 a year for this, unless of course my phone was ringing too often with people looking to hire me.
So, just in a very basic and quick review, I see some $22000 per year incurred to get ready, be ready, and look for work.
If that resulted in a person grossing $100K per year, then they spent 22% in search of that result. I'm not a believer that the percentage is proportionate to the return. That 22% could have as easily have caused the right person to gross 50% or more than the round number I used, hence resulting in a much lower percentage of gross income; and of course that $22K could be spent to gross only $50K.
As for being on standby in the belief that that call is a money maker, unfortunately the lustre of that and its credibility faded some years ago. What do they say about birds in hand? |
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TedPasan
82 Posts |
Posted - 09/23/2003 : 08:48:26
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What is the old saying about the 3 most important things in real estate?
Location. Location. Location.
I suggest in pure "cat adjusting" there are 3 important variables.
Luck. Luck. Luck.
Not to be flippant, but luck does play a great role in whether an adjuster works in a particular year or a particular storm. When Mother Nature manifests her energy quite frequently, there is generally work for everyone. When Mother Nature seems to us to have hibernated, we retreat to other back-up programs for income or to this Forum or some other recreational escape.
Further, two cat adjusters can be sent out to the very same storm with the exact same knowledge and experience and with identical work habits and work products, yet due such variables as differences in their fee schedules, or how well their claims are zoned, or even the difference in size of gross damages of their claims, their incomes may vary greatly due to those nuances. And a certain amount of "luck" can enter into how such variables affect the individual adjuster.
Luck too enters into whether you make the cut for those adjusters on a standby list, with that generally dependent on the staffing needs of the vendor/carrier.
There is some who say they would rather be lucky than good any day.
To a certain extent, we make our own luck.
To me, luck is when opportunity and preparation meet.
Taking classes, attending certification seminars, sending out resumes top new vendors (even when you are established), joining professional insurance associations, knocking on insurance doors, playing golf with those who are in a position of deploying adjusters, making those unceasing phone calls, and taking any action which furthers your personal growth and professional development only tends to enhance your luck. Not only in serving to make you a more professional adjuster through increased knowledge and skills, but in furthering your contacts in this industry through networking.
I received phone calls from adjusters last Friday after this storm had hit, asking if I had any suggestions as to how that adjuster could find work. When I inquired what they had already done or been doing in the previous two weeks (while this stormed loomed on the horizon), most answered they had done nothing (more than wait by the telephone). In other words, they really wanted someone else to do the work required which they should have been doing all along for themselves. It is delusional for any of us to believe that someone else is going to do for us what we should be doing for ourself.
Self marketing is what we all do every day, even including once we are deployed and out working. We self market by providing exemplary service, a quality work product, and a concern for the welfare of our insureds, vendors and carriers.
To me at least, initiating a self marketing program the day after a storm has hit, is almost always guaranteed to be worthless at best. It is too late then unless luck truly does play the role of salvor for your immediate employment.
Don't be discouraged with the present Isabel storm deployment, as you undoubtedly will be joining many good adjusters who simply don't get called out or conversely get called out and then sent home because there was a scarcity of claims. The media hype on this storm has gotten the hopes up of many, but the reality of what we are seeing out here on the ground, is sadly a quite different situation, and I maintain that other than flood, this is actually a rather small wind storm event (on a relative basis of course).
Things always turn out for the best for those who make the best of the way things turn out.
Good Luck to all and please work safely. |
Edited by - TedPasan on 09/23/2003 09:03:01 |
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fivedaily
USA
258 Posts |
Posted - 09/24/2003 : 00:19:00
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| Luck is where preperation meets opportunity. Oprah Winfrey |
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KileAnderson
USA
875 Posts |
Posted - 09/24/2003 : 20:43:29
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| OH, GOD, please don't quote Oprah! Has it really come to this? |
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deleted
USA
53 Posts |
Posted - 09/27/2003 : 20:01:48
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| That saying has been around a lot longer than Oprah |
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fivedaily
USA
258 Posts |
Posted - 12/17/2003 : 02:56:45
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Kile, apparently it has. NACA's 2004 convention's theme is this quote from Oprah Winfrey!
Jennifer |
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okclarryd
USA
106 Posts |
Posted - 12/18/2003 : 09:57:08
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There are sooooo many ways to skin this cat.
I send resumes to each opportunity that arises that I think I would work for. I pick and choose rather than blindly send out applications and paperwork for positions I really don't want.
I have refused and will probably continue to refuse to pay for "certification" by a carrier. If they want to know who I am, how experienced I may or may not be, they need to spend their nickel. I pay for continued education, updates for computer programs, classes to improve my skills and education, etc.
But, I am NOT gonna pay to be "certified" for a carrier.
I haven't kept track of the percentage of my earnings have been spent in these endeavors, but my "bookie" has as it's tax deductible. I would imagine that 20% is not out of line.
The next to last line in TedP's post is most appropriate. |
LARRY D HARDIN |
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