I love the 80s. From the movies and music to food and the simplicity of life. Riding bikes until late at night. Playing in the streets with friends. It was an amazing time to be alive!

The 80s were the first for many things! We experienced a change in technology. At-home gaming systems, and the birth of cable TV. Saturday morning cartoons were a staple in many homes.

Because of a change in law by President Regan, corporations were allowed, for the first time ever, to advertise directly to kids.

The colors and styles of those commercials still captivate us today.  

Big Corporations spent millions on brand wars.  

Ah yes…. The brand wars.   

Remember...

• Nike vs. Reebok?
• Nintendo vs. Sega? 
• McDonalds vs. Burger King?
• Pizza Hut vs. Dominos?
• What about the biggest of them all: Coke vs. Pepsi? (Coke is still better EVERYTIME)!

Coke vs. Pepsi was dubbed “the Cola Wars”. Each brand spent millions on different forms of advertising to establish what brand was superior. Thousands of commercials were produced by advertisers worldwide. Printed ads and games offering free items to win helped the “Cola Wars” reach their peak in the 80s. When it was all said and done, Coke was dubbed the winner. 

Yet the debate is still far from over. Ask anyone you know today what they like better. Everyone still has their favorite and it is quick to point out why their brand is so superior to the other.

So, does that mean that Coke is the better choice over Pepsi? It really comes down to each person’s own opinion.  

In the world of restoration, we have our own debate taking place. It’s often one of the first questions I get asked about our restoration company. 

“Does your company work with TPAs?"

“What’s your opinion on TPAs?"

As if we are to be judged if we work with TPA’s or not.

Like the Coke vs. Pepsi debate, this has become a hill that many will die on. For most this is one or the other, and there is no in-between.   

Unfortunately, several companies are judged and ridiculed for choosing to work with TPAs, as if it’s a bad thing.

With so much stigma and misinformation around the topic, I think it’s time to have a solid look at the benefits of working with TPA’s vs. not doing TPA work.

Let’s look at the benefits of a TPA.

A TPA is a “Third Party Administrator”. They oversee the restoration process for the insurance company often controlling the restoration process.

A contract with a TPA can provide the following:

• Generate jobs on a consistent basis.  This can be very helpful when it’s slow in providing a streamline of work.
• Create trust with the vendor for your company to be their “go to” restoration company in your service area. 
• In the event where a client gets multiple estimates, having a relationship with the TPA can be the difference with your company being hired for the job, or not.
• Quicker processing of claims can lead to quicker approvals on estimates, allowing for work to be completed faster for your client.
• Payments issued faster, in some situations even directly deposited into your accounts giving you access to funds immediately.
• Direct payments to your company, reducing the risk of the client keeping the money and not paying. 
• Many TPA’s represent multiple insurance companies. This can open the door to working with several companies and building a reputation with them all, expanding your network and reach.
• Pre-approved job scopes and pricing, allowing your company to know the exact numbers prior to starting. 

All the benefits don’t sound bad at all! However, TPA’s are known for several drawbacks that can make a lot of companies think twice about working for one.  

Let’s look at the drawbacks of working for a TPA:

• Strict guidelines to be approved to join a network. This can lead to delays and frustrations during the duration of the application process.
• Increase in the documentation process with time limits which can lead to extra hours spent internally for administrative personnel.
• Many TPA’s dictate pricing and terms of the scope. This can create potential issues for not being able to properly restore the property while being able to profit. 
• Some require an annual subscription to be a part of their program.  
• TPA’s have strict guidelines from the insurance carriers to reach certain cost control percentages. This can cause a TPA to require multiple estimates prior to approval for repairing a property.  
• Competitive market where your pricing will be required to be on the lower end.  
• Some Labor items may not be able to be charged for, essentially doing some work for free as an agreement to be part of the network. 
• A Company may be required to have pre-approval prior to doing any work. In some cases, even the amount of drying equipment that is approved and how many days it will be paid for may have to be pre-approved.   
• Specialized certification and insurance policies can increase the cost of being on a TPA Program.

In the end, the Cola Wars were never just about soda—they were about loyalty, perception and personal preference. The same holds true in the restoration industry’s ongoing debate over TPAs. Just as some people will never give up their Pepsi, others will always swear by Coke. But whether you choose to work with TPAs or steer clear of them, the real question isn’t who’s right, it’s what’s right for your company, your culture and your clients. 

Like the 80s taught us, bold choices and strong identities win hearts and minds. So, plant your flag, know your reasons and remember—success isn’t about picking sides, it’s about knowing where you stand and delivering with excellence.