When disaster strikes, whether it’s a hurricane, earthquake, flood, terrorist attack, or some other devastating event, many businesses are eager to volunteer and help those in need. They want to help rebuild damaged homes and businesses, and often donate the materials and labor needed to do so. Unfortunately, volunteer and donation resources often run out much sooner than expected. And too often, those businesses that willingly gave their time and resources to those in need feel guilty about charging for additional services, so they pack up and leave the area, proud of their good deed, but leaving those in the disaster area with few recovery options. .
A great example of this is what happened in Port Charlotte, Florida after Hurricane Charley. Initially, after the hurricane, a large number of contractors went to the area, donating services, supplies and other things needed to rebuild the community. The federal government also stepped in and paid many of the rebuilding bills, including things not normally covered by FEMA. But then the money started to run out and most of the volunteers went home. The funny thing is that the residents of Port Charlotte did not want the contractors to leave and would have paid them their normal rate to stay and finish the disaster recovery efforts. But the contractors, the ones who were there as volunteers, felt guilty about taking money from the disaster victims. Now, two years later, many Port Charlotte residents are still looking to reputable contractors to help them. It is an unfortunate situation that does not have to happen.
Perhaps even more concerning is that we are starting to see a similar trend in people and businesses helping with disaster preparedness. Recently, the Annals of Emergency Medicine, one of the largest emergency medicine journals, ran an editorial specifically targeting universities benefiting from the sale of courses developed with grant dollars. That is, they created disaster preparedness materials with federal grant money and then made hospitals and communities pay to receive the course materials. While such a practice is clearly unethical, many people thought the magazine was implying that it’s unethical to make a business out of disaster preparedness: going into communities and hospitals and charging a consulting fee or teaching for profit how to be prepared. in case of disaster. a disaster. In reality, nothing could be further from the truth.
So does that mean it’s possible to benefit from a disaster situation and not feel guilty? Yes! And those companies that can get into a community after a disaster strikes and offer a needed product or service can make big profits…and ethically.
3 ways to profit
When it comes to profiting from a disaster, most people think of price gouging or speculation. Price gouging is not only immoral and unethical, but in all states and territories it is also illegal. It is a criminal act where you are taking advantage of people who have no choice but to pay. When Hurricane Katrina hit New Orleans, we heard examples of unscrupulous store owners selling generators (typically retailing for a few hundred dollars) for two and three thousand dollars. All of those people received jail terms or fines, and had their business license revoked. Such people do not seek to profit from the disaster; They seek to profit from misery. Basically, there are three ethical ways to make money after a disaster.
1. Volunteering and Donation. In this scenario, you volunteer your time and donate your products or services. You cover all your own costs and accept nothing in return, apart from perhaps food and lodging. In exchange for your time and materials, you get the warm feeling of doing something good for the community. You become an everyday hero. If you’re visible during this time, you also get great publicity, which could lead to future business from those who remember your good deed.
2. Discounted services. This is the most common scenario and, as the name implies, it means that you offer your products and/or services to the community at a reduced price. Those who choose to go this route realize how low they can price something without the decision being a burden to the business. Note, however, that no one in the community requested the discount (although no one will turn it down either). Often the business owner gives the discount because they have a certain level of altruism.
3. Full price. In this scenario, you go into the community and offer a fair market price for a product or service, roughly equivalent to what other companies would charge in non-disaster times. And because it’s a fair market price, people are more than happy to pay it. This is completely moral and ethical. Unfortunately, few companies transition to full fee after starting out as volunteers. But if you really want to grow your business and profit from the mess, this is the way to go.
From Free to Fee
So how does a company go from being a volunteer to a paid consultant or contractor? Here are some suggestions:
* Be honest. Indicate how long you can offer your products or services for free. For example, tell people, “I can afford to volunteer for two weeks. I can afford to bring X amount of materials. If we run out of materials before two weeks, you provide the material and I’ll keep the rest.” weather”. I affirmed.” After the two weeks are up, before you retire and walk away, talk to the people you have been helping. Explain again that you can only afford to volunteer for two weeks. At that point, they’ll ask you to bid on the rest of the job. You can then offer a fair market offer. If you get a “yes,” why wouldn’t you stay? You’re already there, and now you’re making money. If it says ” no,” then you take responsibility for your own recovery. At that point, you can go home and go about your business, knowing you’ve done a good deed.
* When your community develops its disaster relief plans (before a disaster strikes), include your business in the list of businesses available to help with recovery efforts. Businesses can work with their local communities to be “called first” in the event of a disaster. What does that mean? Assuming the company is able to respond, that company will put community recovery (or specific targeted recovery within the community) at the front of the queue. But that’s just the beginning. In some cases, a business (say, a hospital, for example) may contract with a service provider (such as a roofing contractor) and pay an up-front fee so that, in the event of a disaster, that will put the hospital contractor at the front of the list. In return, that contractor gets the bid for the other work the hospital needs to do. The contractor is happy to give that deal because it guarantees them business. This is completely ethical. In fact, it is a win-win solution. The business gets the repairs they need and the contractor is guaranteed work. What could be better?
The bottom line is that businesses need to understand the different ways they can help and overcome the stigma of profiting from the disaster. Realize that the people who receive your products or services don’t mind paying for them. In fact, no one on the receiving end of products or services expects to get everything for free, and most of them will gladly pay a fair market price for anything you offer. So take full advantage of this profitable market segment. By doing so, you’ll be helping people in need while helping your own business grow.