How To Turn Warranties Into Profits For Your Home Service Business with Tim Byrd

Some of the biggest hidden profit leaks in a home service business are sitting in your warranties. Every callback pulls a tech off a paying job. You eat the cost, and it comes straight out of today's cash flow. My guest, Tim Byrd of Warranty-RE, has spent 32 years helping car dealers set up and own their own warranty companies. Now he's doing the same thing for home service businesses. He told me about an HVAC owner he met in Scottsdale who was sending $600,000 a year to a third-party warranty company. His claims didn't come anywhere close to that. If you're building a profitable HVAC business or trying to protect your roofing contractor profits, this conversation shows you how to stop callbacks from hurting profits and start keeping the premiums you collect. What You'll Learn: Why third-party warranties send out more money than they ever pay back How owning your own captive insurance company keeps warranty premiums in your pocket How an 831b company lets warranty premiums grow without being taxed Why the labor on every unit you install stays on you for years How old warranties can hold up the sale of your business How one of Tim's customers used his warranty company to fund his son's home Key Moments: 1:51 The $600K A Year Warranty Problem 4:44 What A Captive Insurance Company Is 8:47 Why Setting Money Aside Yourself Still Costs You Taxes 16:49 Which Home Service Businesses Qualify Right Now 21:54 How Old Warranties Can Stall The Sale Of Your Business 23:13 How $1.8M In Premiums Turns Into $1.5M You Keep 31:11 Funding A Son's Home From A Warranty Company 33:50 The Profit Leak Behind Cash Flow And Tax Problems This is one of the tax strategies for contractors I get excited about. It plugs a leak and builds a reserve you can borrow against later. It's a smart way to protect your callbacks and profit margins at the same time. 🎧 Listen to all episodes at https://profitablehomeservices.com/ 🤝 Connect with Tim at https://warranty-re.com/benefits-of-reinsurance/ ACCESS SOME FREE RESOURCES TO BOOST YOUR PROFITS 🤑Add $200k In Profits Without Chasing Leads Sales are rolling in, so why does your business still feel broke? Here are 15 ways to add profit back into your Home Service Business without more leads & sales. https://profitcoach4you.com/profitleaks Profit Impact Call ☎️ Let me find $45k in hidden profit leaks in your home service business in 45 minutes during a Profit Impact Call. https://taxcoach4you.com/profitimpactcall/