Experience Files

"These prices in Xactimate suck, they haven't changed in 20 years!" I hear this complaint constantly, yet rarely do I hear discussions about concrete solutions. After directly engaging with Xactware's pricing department, I've gained some insights into how we, as restoration contractors, can actually drive pricing change.

Here's what I learned and what you can do to influence Xactimate's pricing:

1. Labor Rate Calculations: Xactimate's labor rates are determined by a combination of factors: direct feedback from users, ongoing market reviews (which I've personally helped trigger a couple of times!), and governmental data from sources like the IRS. While the exact equation for technician pay was beyond the scope of my knowledge, it appears to hover around roughly three times the median technician pay.

2. Customize Pricing in the Components Tab: Don't just accept the default. Create and implement pricing under the "Components" tab of your estimates that accurately reflects your observed needs and costs for labor and materials.

3. Mark Estimates Complete and Submit Feedback: This is critical. Once you've finalized an estimate, mark it complete and submit feedback to Xactimate. This action allows their pricing department to see real-world financial trends and identify areas where adjustments may be warranted.

4. Even for Static Bids, Provide Feedback: Even if you're submitting a PDF bid to a client or adjuster with current Xactimate pricing, internally mark up those prices in the components tab to reflect what you should be charging, but were unable to negotiate. Then, mark it complete and submit that feedback to Xactimate. Every piece of data helps.

5. Directly Contact Xactimate's Pricing Department: Don't just vent in online forums. Call or email Xactimate's pricing department directly about specific pricing issues you're encountering. Your direct input is invaluable to them.

6. Understand Adjuster Feedback: Be aware that insurance adjusters provide feedback on every single estimate they process. Their primary goal is often to keep claim values down, which can inadvertently suppress pricing. This makes it even more important for contractors to provide counter-feedback.

7. If You're on a Vendor Program, Be Diligent: If you operate under a vendor program, where you have less flexibility to modify pricing, it's even more critical to frequently call and email the pricing department. Your voice matters, even if your immediate ability to adjust line items is limited.

8. Encourage Your Competition to Participate: This is where collaboration comes in. Encourage your competitors to do the same. Most likely, they're unaware of how they can influence pricing. This is mutually beneficial to all involved in the industry.

Don't just talk about change; be the change. Start actively engaging with Xactimate's feedback mechanisms to ensure pricing accurately reflects the true costs of restoration.