- Paul.
What's the Max Pain Point in your Business?
Unfortunately for many business owners we are caught up in the 10,000 mile an hour world, trying to get the next best marketing program, or next best software, next best service and so on (trust me I know).
But what a lot of us do not realize is, we actually have pain points inside our business and most of us do not even realize it, and it could be costing you money, holding you back, or slowing you down to an almost stop.
To give an example and not to go on too long, I was talking to a prospective business owner, awesome, nice person who cares about her business and her employees, she was worried she would have to start making cuts. When reviewing her workers comp, we found her Experience Rating Modification, we at 1.65%, she just blamed the claims on that (and she was correct), but it wasn't until we explained that working to prevent the claims, and to get the open ones closed, will help bring her Ex Mod down, but it was when we showed her the numbers and what her competitors were paying, that really opened her eyes and she was ready for action, why because she had a pain point, but never really pin pointed or thought about it.
To show you just how we pinpointed her unknown pain and dollars lost, this is where she was at on her work comp policy (now some of you will be familiar with an Experience Rating Modification, if not you can read here to learn more).
This business owner, has a worker's comp policy with a 1.65% Ex. Mod, now in her mind this was something she thought she just had to accept because she had, had some work comp claims, but she never viewed it as a pain point for her and her business until we showed her in dollar amounts how much she was losing.
So, to keep it simple, I will not use her actual payroll and rates, but let's say she has $1,000,000 in payroll, and her competitor has the same $1,000,000 payroll.
So now this means both her and her competitor have the same class codes, same base rates, lets say those base rates are as follows:
Shes is in the Home Health Field in California, so her class code is 8827. So lets call her company A and her competitor company B.
Company A
Class Code: 8827
Payroll: $1,000,000
8827 Base Rate is $10.00
Payroll $1,000,000 /100 = $10,000
$10,000 X $10.00 = $100,000
$100,000 X Ex Mod 1.65% = $165,000
Her premium for one year's workers comp was $165,000.
Now let's look at Company B
Company B
Class Code: 8827
Payroll: $1,000,000
8827 Base Rate is $10.00
Payroll $1,000,000 /100 = $10,000
$10,000 X $10.00 = $100,000
$100,000 X Ex Mod 0.75% = $75,000
Company B's premium for one year's workers comp was $75,000.
What's her pain point? $90,000
Now for whatever reason she was not aware of the loss of $90,000 and did not realize this equates to a loss for her. Now ask yourself what could you do saving $90,000?
Now this is just one example of a pain point, are there others "yes"
Can she do something about this to fix it and make sure this is avoided in the future "yes" we are working with her to make changes.
We have many examples of boosting your business and productions from employees and yourself.
Did you know most business owners just assume that their costs and expenses are a part of doing business, and never take the time to review what they might be overpaying.
Do you have pain points in your business, do you even know they are there?
Let's talk, not about insurance, but about you, your business and let us get to know you and understand you...