Just Sayin’ Blog – Interview with Paul Heinauer – Glasspro

Paul, you have a wealth of experience and knowledge in the automotive glass repair and replacement (AGRR) industry. I appreciate your taking the time to talk with me today.

I know that you got your start in the industry in 1979 by joining PPG Industries as a management trainee and over the course of your time there you became a branch manager for them in Greenville, South Carolina. What sparked your initial interest in the AGRR industry?

PH:

I liked the idea. Everyone who owned a car was a potential customer. I also liked working directly with customers. It was a good fit with my personality.

 

You left PPG in 1986 to open Coastal Glass Distributors in Charleston, South Carolina. Do you mind sharing the reason why you left PPG?

PH:

I loved working with PPG and they taught me so much, but I saw an opportunity to open a glass distribution business in Charleston. The market seemed underserved to me.

 

So you saw a great opportunity to open a wholesale business to fill a need in the marketplace and Coastal Glass proved to be a success. That’s great, but what caused you to decide to exit a successful wholesale business that had grown quickly in the market and move into retail?

PH:

The auto glass business was changing and a number of our retail customers were being purchased by large retailers.

I realized that you couldn’t serve two masters.

 

So after starting Glasspro in 1995 and turning your focus solely on the retail side of the AGRR industry what did you learn about the differences between the wholesale and retail business and especially when it came to serving the needs of your customers?

PH:

The insurance industry paid better than contractors did. But more importantly, I felt insurance customers valued service and quality more than a lot of glazing contractors did.

 

So how long did it take you to open additional stores in the South Carolina market?

PH:

We opened our second location in 1995.

 

Knowing you and understanding that ensuring that each and every customer you do work has the absolute best experience and is “delighted” with that experience, as I’ve heard you say, and service they receive from Glasspro, what suggestions or ideas can you offer to the readers of this blog on how to achieve that with their customers?

PH:

It is a total commitment from all of our people to recognize that it is a one job at a time business.

 

What were some of the challenges you faced in finding and then keeping the best people to make sure your customers are always delighted with Glasspro?

PH:

We hire “nice,” and we use a personality profile assessment on every potential new hire. We want to make sure it is a good fit for all parties concerned.

 

Is it difficult in a market like South Carolina to sell people on windshield repairs?

PH:

We spend a lot of time, energy and training on explaining the benefits of a repair.

Do you provide any non AGRR services for customers at Glasspro?

PH:

No, auto glass is all that we do.

 

You and Glasspro are and have been leaders in the AGRR industry for quite some time. In the past 8 years you’ve had 4 of your auto glass technicians win the Auto Glass Olympics in the United States and 1 who won the world title. That is truly an amazing feat for one AGRR company to have achieved and I’m sure you’re quite proud of those who have competed in and those who have won these events. What drives your auto glass technicians to not only excel in what they do for your customers in South Carolina, but to work so hard to become Auto Glass Olympic winners?

PH:

We have been fortunate again in hiring the right people who are committed to striving for excellence, each and every day.

For other companies in the AGRR industry that would like to compete and have the success that you’re auto  glass technicians have had in excelling in these events, what advice do you offer them?

PH: 

Train to the Auto Glass Replacement Safety Standard® (AGRSS®)  and then install with it on each and every windshield.

 

As a strong supporter of the AGRSS® standard and the goals of the Auto Glass Safety Council, Inc. what advice would you offer to other AGRR companies about joining the safety organization, following the ANSI standard and opening the doors of Glasspro to third party auditors to validate to your customers that you provide the safest installations possible?

PH: 

I believe it is good for your customers and sends a message to your employees that providing safety is the most important thing that we do.

What advice can you offer on how you successfully compete against a national player in the market place?

PH:

We respect all of our competitors, but we also take great pride in striving to deliver excellence and value to our customers.

 

I know that you may be uncomfortable about talking about some of the things you and Glasspro do to help those in need in your markets, but you’re a big supporter of your community and I commend you for your the efforts. You have developed a program called “3 Degree Guarantee” to help many in your community and the coastal area of South Carolina with special needs. Could you tell us a little about what you and your company accomplishes with “3 Degree Guarantee”?

PH:

It helps us bring awareness to many non profits as well as give them funds. This allows them to serve our local community.

 

I’m very proud that Glasspro is one of the co-branded partners of Windshield Centers. As a locally owned and operated AGRR business that has found great success in the markets you serve, what attracted you to becoming a part of Windshield Centers?

PH:

Windshield Centers is customer focused and committed to delivering excellence just like Glasspro strives to be. There were many things that I found attractive about Windshield Centers, but two in particular stood out. First, Windshield Centers is using advanced technology which provides a quick response to customers’ needs in a way that really keeps a customer in the loop. Secondly, they have created a Windshield Centers “Centers of Excellence”, which focuses on an environment that fosters continuous improvement for its members. These two advancements are just a few of the things which I believe help us bring value to our insurance partners.

 

Is there anything else you’d like to talk about with the readers of this blog?

PH:

I believe we are entering a special time in our industry and I am confident the future is bright for the committed independent auto glass company.

 

Well thank you very much Paul for taking the time to talk with me about Glasspro and the success that you’ve achieved and also passing along how positive you are for the future opportunities that exist in the AGRR industry. I’ve had the fortune to spend time with you and your team and it is quite obvious why you and your company have enjoyed such great success. There are always opportunities in the market place for those who desire excellence for their company and the people that work with them to achieve that success. I wish you and your organization the best in 2013 and the years to come.

Just sayin’.

Just Sayin’ Blog – Two Kinds of People

What each of us is today is a reflection of experiences we’ve had in our lives. It is at the same time both interesting and frightening to take a look at different people and wonder what could have possibly happened to make them become what they have become. Have you ever thought about what may have happened in someone’s past to make them become what they are today?

Nothing brought that question more into focus than when last week we saw how countless nameless people; heroes without concern for their own safety went to the aid of those who were victims of the terrorist act perpetrated on the innocent at the finish line at the Boston Marathon on Monday, April 15, 2013. Without giving any thought to the potential risk to them; we saw first responders help those who were injured by this truly senseless act. In those who chose to become police officers, fire fighters, emergency medical technicians (EMT’s), whose job it is to serve the public we saw countless examples of valor and heroism. Amazing people; doing amazing acts to help all who were injured. Those brave men and women who run toward danger instead of from it.

Keeping in mind all that those public servants did to help during this tragedy, you have to then look at all of those who were volunteers working the race or those that were watching friends and family running the race who sprang into action to help all who were injured by this truly senseless act. How amazing these people were who you would have thought would have run from the danger, but instinctively ran towards it. What is it in their backgrounds that brings out that kind of reaction? That desire or need to help others. You would like to think that in that moment you too would choose to run toward the danger and help rather than run from it.

Last Saturday at Fenway Park where the Red Sox were playing the Kansas City Royals you had to watch in awe at the tribute to victims and heroes of the Boston bombing. Neil Diamond was there leading the singing of his song “Sweet Caroline” and then the “National Anthem” was sung by all in attendance. It was inspiring to watch and all of Boston united in that ceremony. Boston Red Sox designated hitter David Ortiz said, “This jersey that we wear today, it doesn’t say Red Sox, it says Boston. We want to thank you, Mayor Menino, Governor Patrick, the whole police department for the great job they did this past week. This is our %$&+#@* city! And nobody going to dictate our freedom. Stay strong.” The Red Sox ended up winning the game 4 to 3.

In the Netflix mini-series “House of Cards” the main character is Frank Underwood, a member of the United States House of Representatives. Whether you like Frank or not he is a composite of his past, the experiences he has had in his life. While sitting at his favorite restaurant in Washington, D.C., a hole in the wall barbeque joint Frank listens to the owner of the restaurant, a man named Freddie while Frank is enjoying a plate of ribs. Freddie is telling him about a near-miss accident involving a refrigerator falling off a minivan on a highway. After listening to Freddie tell how he almost died swerving out of the way of that refrigerator Frank looks in the camera and tells us, “See, Freddie believes that if a fridge falls off a minivan you better swerve out of the way. I believe it’s the fridge’s job to swerve out of mine.” When you think of all those first responders and civilian volunteers who ran toward the danger and risked their lives to help those in need they believed that it was the refrigerator that needed to swerve.

To all of those who want to bring harm to our nation you should know that there are countless Americans who will not swerve. Hat’s off to all of those who ran toward danger in Boston this week to help those who needed help.

To those who perpetrated this act, there is a special place in hell for you.

Just sayin’.

 

                

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Just Sayin’ Blog – 10 Big Rules from T. Boone Pickens

A couple of months ago I was looking at a web site TED.com. TED.com is operated by a non-profit group dedicated to bringing together leaders from technology, entertainment and design who are given the challenge to give “the talks of their lives” in 18 minutes or less at TED Conferences. If you visit the web site you’ll find a number of very interesting people talking about a wide variety of topics and most of them are passionate discussions of topics that are very important to each speaker. The organization also has events called TED^x (the ^x means an independently organized TED event) which brings the lofty goals of the international organization to locales across the United States and world to stimulate discussion on topics that have special meaning to the community. Through this site I found a T. Boone Pickens talk which he gave at his alma mater Oklahoma State University on December 3, 2012. The topic was what he called The Leadership Plan. In a 16 minute talk that was both humorous and serious, he laid out what he called his 10 Big Rules which really resonated with me. To me, these rules seem more like principles, but Mr. Pickens rules are pretty straightforward and are ones that anyone can and should follow. His 10 Big Rules:

1.    Have a good work ethic

2.    Make a plan

3.    Look for big things

4.    Take advice from smart people

5.    Make your case in 3 minutes or less

6.    Don’t be afraid to make a decision

7.    Embrace change

8.    Don’t cheat

9.    Have patience

10.  Be generous

In the case of T. Boone Pickens these were the rules that he started following while attending Oklahoma State University after a little prodding from his father. The fact that he figured out these rules at such a young age brought him the opportunity to have a wealth of experiences and at a young age monetary wealth as well. His first rule is that, regardless of your position in life, having a good work ethic is a key to having success. No one can disagree with that one. Mr. Pickens second rule is to make a plan. If you make a plan it will provide you a clear direction to head in achieving the goals you set for yourself. This rule should also give you a way to clearly measure how you’re working toward achieving your plan. When you look for big things you find will find ways to differentiate yourself from others and this should help you in finding success in anything you pursue.

Mr. Pickens fourth rule certainly has meaning to me – take advice from smart people. You can’t know everything so finding people who can help you achieve your plan is critical to finding success. I’ve always tried to surround myself with smart people who bring knowledge and experiences I don’t have. The next rule is that you need to be able to make your case in 3 minutes or less.  This really speaks to having a clear understanding of your goals along with the key ingredients that will provide you with a recipe for success that you can easily communicate. Why is this important? In order to get those you want to join you in pursuit of your plan, you need to be able to persuade or influence them so being able to make your case will be critical to your success. Once you’ve got your team on board with your plan you also need to be able to clearly communicate to those who will be buying the product or service you’re offering. Rule five make your case in 3 minutes or less makes a lot of sense.

As a leader don’t be afraid to make a decision. You can get bogged down in the decision making process, but don’t. You obviously always try to make the best decisions you possibly can by analyzing all pertinent information and determining the best course of action. Then ou then deal with the consequences of the action that you take. Be fearless.

You also have to be able to embrace change. With Mr. Pickens’ rule number seven he’s telling us that everything around us is in constant change and you must  willing to accept change if you want to find success in business. If you’re not open to trying new ways of doing things you are not going to be successful. You can’t fear change and you have to surround yourself with people who embrace change just as much as you do. Mr. Pickens says be a change advocate and that’s truly great advice.

His eighth rule – don’t cheat – doesn’t really need any explanation, but no success can truly be enjoyed if you cheat to achieve it. I’m sure you know people or companies who you feel have cheated and achieved success by doing so. It is certainly frustrating to watch others cheat and get away with it, but if you really want to be a leader Mr. Pickens advice is just don’t do it.

The ninth big rule is one of the most important rules. As a leader you have to have patience. You need to show patience with the people that work for you and you have to be patient as you put your plan into action. If you have faith in the direction you’re going you have to give your plan time to work. Mr. Pickens tells a story of a friend who told him, “Don’t rush the monkey and you’ll get a better show.” Be patient.

T. Boone Pickens tenth big rule of leadership is that you should always be generous with your time and treasure. His grandmother told him, “Don’t forget where you came from.”

The 10 Big Rules that Mr. Pickens detailed in his 16 minute talk are really great rules for anyone to follow in life or business.  As I mentioned earlier, when I watched his talk at the Oklahoma State University Mr. Pickens 10 Big Rules really resonated with me. I’d like to think that I have followed his rules in my business career, but the only way to know for sure would be to ask those with whom I have had the privilege to have worked.

What do you think people would say about you if asked?

Just sayin’.

 

 

Just Sayin’ Blog – The Pain of Regret

In these cold days of winter my sports focus starts shifting away from the NFL, even though the ultimate game is taking place this coming Sunday night. The so called “HarBowl” pits the San Francisco 49ers coached by Jim Harbaugh versus the Baltimore Ravens coached by John Harbaugh. I wrote a blog last year titled “Meaningful Quotes – Harbaugh, Hogan and Einstein”. In that blog I used a quote from their father Jack Harbaugh  

“Attack this day with an enthusiasm unknown to mankind.”

While watching this NFL season we’ve witnessed how both of these coaches have guided their teams this season and on to win their divisional playoffs games. The two teams and coaches will meet in New Orleans on February 3, 2013 at Super Bowl XLVII. The Harbaugh brothers’ enthusiasm for the game and life is quite evident.

How about you? Do you have a similar level of commitment and enthusiasm for what drives you in your life?  Are you committed to doing the best that you can each and every day? Be that in business or in sport, there are times when you face difficult challenges that require you to make that extra effort that separates your company from another, one sports team from another.

The ability of you and your company to excel in business today demands that you have that enthusiasm and that you must surround yourself with those who you know have it too. Enthusiasm and the ability to give it your all, to use every play in the book and design your own new plays to beat your competition are keys to your success. This doesn’t mean that you’re always going to win just because you gave it your all,but you have to put yourself in the position to win. That’s certainly what I’m attempting to do and I want to associate myself with team members with similar enthusiasm who will help us to win.

As I mentioned earlier, this is the time of year that my sport focus moves away from the NFL and moves to NCAA Men’s Basketball. It ends quickly with March Madness, but right now, as a fan, I enjoy watching big games between NCAA powerhouse names. Whether you’re a fan of the Big 10, 8 or 12; the ACC; the SEC; the Big East; the Pac 12 or other conferences, you know what those big games are. In any game a top team can be defeated by another team not as highly ranked and seemingly with less talent. How? With enthusiasm and the desire to win underdogs can prevail. Upsets happen and, as long as your team is not the loser, it’s always fun to watch. In recent games you could see:

13th ranked Butler Bulldogs (now 9th)

over the then 8th Gonzaga Bulldogs (now 7th)

or the

25th ranked Miami (Florida) Hurricanes (now 14th)

over the number 1 ranked Duke Blue Devils (now 5th)

or the

unranked Villanova Wildcats (still unranked)

over the 3rd ranked Syracuse Orange (now 6th)

or the

unranked Georgetown Hoya’s (still unranked)

over the 5^th ranked Louisville Cardinals (now 12th)

Just to name a few.

The Gonzaga versus Butler game on Saturday, January 19, 2013 played at Hinkle Fieldhouse in Indianapolis was especially exciting and turned into an instant classic. After a hard fought game, Butler won the game on a last second shot by sophomore forward Roosevelt Jones. After the game Butler Bulldogs men’s head basketball coach Brad Stevens in an interview with ESPN suggested that,

“The pain of losing isn’t as great as the pain of regret.

You have to give it your best.”

The message is do everything you can to win your game even if you sometimes come up short. Don’t let anyone or any company determine the path you take and then find that you regret it later.

Win or lose in business or sport you must have what Jack Harbaugh exhorted his sons to always do and give it your all.

“Attack this day with an enthusiasm unknown to mankind.”

Great advice. And as Jack Harbaugh has also told his family for a longtime,

“Who’s got it better than us? Nobody!”

With his sons battling each other as head coaches in Super Bowl XLVII it appears a fitting motto for his family.

Just sayin’.

Just Sayin’ Blog – The Times They Are (Always) A-Changin’ – Part II

In a recent blog titled The Times They Are (Always) A-Changin’ I mentioned a few of the acquisitions that have recently taken place and I wrote about why an owner might consider that selling at this time is a good choice.

“There are many ways for your business to remain relevant and continue to survive in the retail world. Whatever you believe it is that you must do to remain relevant you need to make sure that your customers believe it too. For some businesses remaining relevant may mean selling or merging with a competitor. In recent weeks several businesses have announced that they are doing just that.”

Later in that paragraph I wrote:

“During the past 30 years, a number of companies have acquired others in the AGRR industry to increase their own market share and separate them from or take out competitors. It certainly seems that there has been an uptick in acquisitions of companies of all sizes and I’m sure you’ll be hearing of others very soon.”

It didn’t take long to hear of others. On December 31, 2012, The Boston Globe posted on its www.boston.com web site a story titled “Safelite declines to comment on talks to buy Giant Glass”. If the story was true it was big news in the greater Boston market. Safelite has been trying to regain its position in New England for a number of years. A couple of days later it was confirmed by glassBYTEs™ and also in a story titled, “its official: Giant Glass is now owned by Safelite”. As a local company Giant Glass advertised against using “national” companies, but now Giant isn’t a local company anymore and its now owned by a company that’s headquartered in Belgium. I wonder how that’s going to play in the marketplace. Then last Friday, January 11, 2013 glassBYTEs™ posted another article titled “Safelite Acquires Second New England Area Shop this Month” reporting the acquisition of Windshield World based in Vermont.

There are all sorts of good and bad reasons to buy or sell. I think we’ll be hearing of further acquisitions announced by Safelite, Gerber and others in the near future. Maybe you’re hearing some of the same rumors that I’m hearing?

Regardless of the ongoing consolidations that are taking place I’m certainly a firm believer that there are opportunities for independents in the automotive glass repair and replacement (AGRR) industry. In order to be successful you’ve got to make sure that you surround yourself with the best people and that they are committed to the goals and aspirations that you have for your business. You’ve got to deliver on the promise of providing the best service and products that you can versus your competitors and then do it at a fair price. In The Times They Are (Always) A-Changin’ (Part One) I wrote,

“Other ways you can remain relevant are by finding that unique selling proposition (USP) that separates you from your competitors. So what is that something that only you can do in your market, something that raises the bar so high that your competitors either can’t or won’t try to achieve it therefore distinguishing you from others in the eyes of consumers? If you find that USP, you will survive against other retailers in the battle royal that exists in your market. Of course the need to find that extra something has always existed in business, but maybe more so today with the pace of change that you see across the retail industry. When you see the mega-retailers like Amazon.com and Wal-Mart fighting over current customers to determine which will find the USP that will secure future customers and separate it from others, you know that the same battles that have been going on for years aren’t subsiding anytime soon. It is the same in the AGRR industry and you can be sure that things that you’re doing today in your business will change tomorrow and you need to change with it.”

 In times like we’re in now you need to focus on what you’re doing and how you can differentiate yourself from your competitors. Non U.S. based companies like Safelite and Gerber seem to be gobbling up the competition. Find your USP and find a way to compete. As the cartoon below suggests, “keep changing the game”. 

Cartoon courtesy of http://www.TomFishburne.com

 Just sayin’…….

Just Sayin’ Blog – What’s Your Line-up?

I was talking with someone the other day and she asked, “What’s your line-up?” We were talking about business, but the question threw me for a second. Was she asking about my fantasy football team? I wasn’t quite sure so I asked, “My line-up for what?”

I live in Chicago and like many big cities we enjoy a number of professional teams. The Chicagoland area has an:

NFL football team – The Chicago Bears,

NBA basketball team – The Chicago Bulls,

MLB baseball team(s) – The Chicago White Sox and Chicago Cubs,

NHL hockey team – The Chicago Blackhawks,

AHL hockey team – The Chicago Wolves and an

MLS soccer team – The Chicago Fire.

Each of these professional teams have enjoyed well known successes and equally well known failures over the years. Champions in one way or another, but for some it’s been a while (i.e. Bartman…just an excuse). One common element of each is that it’s the job of ownership and/or management to put together the best team possible to ensure success week in and week out which will drive increased fan interest and that equals increased revenues and profits. That right mix of team members should determine how the goals that are set for the team are accomplished.

For me, this time of year my focus moves from football to NCAA basketball. In an article in the USAToday from December 10, 2012 the University of Illinois men’s basketball coach John Groce calls the bond between team members “T-n-T” (toughness and togetherness). That seems appropriate for getting the team through a season of home and away games working their way to the ultimate prize of getting an invite to the dance – March Madness. March Madness is one of the greatest sporting events and to get there Coach Groce is right that it takes “T-n-T”. I think he’s onto something.

Getting back to the question, “What’s your line-up?” When I asked what she was referring to she said, “Oh. I meant who’s on your team?”

Over the past year or so in blogs I’ve posted I’ve talked about what I feel is the most important thing in business – people. In a blog titled Inconvenient Truth(s) I wrote,

“You can’t really find the greatest success in your business without surrounding yourself with the best people you can find. Basketball legend John Wooden was quoted as saying,

“Whatever you do in life, surround yourself with smart people who’ll argue with you.” 

Sound advice from a true winner.”

You obviously need to have a good product and service offering that differentiates you from others in the market, but if you look at other past blog posts you can see a reoccurring theme of what I think is important and that’s the people. In order to find real success in business you have to be able to assemble a great team that can deliver on the promise you make to your customers for your product and service.

It really doesn’t matter what kind of business you have, you have to surround yourself with the best. So whether the business you’re responsible for running is a sports team, a body shop, a donut shop, a retail clothing store, an auto glass repair and replacement (AGRR) store or company you had better make sure that your team is comprised of the best and you better find a way to keep them.

Let’s face it, businesses thrive, languish or ultimately fail depending on how their team performs. You can’t take your team for granted. The best people want to be a part of a winning team and they don’t want to settle for second best. Great team members embrace the vision you have for your business and for your team. They are your team as long as you keep them motivated and focused on delivering on your customer promise, while providing them an environment for them to excel. They are after all stars and they want to perform and be a part of the best.

So if someone asks you “What’s your line-up?” Think about who makes up your team. Do you have a quarterback like Aaron Rodgers, a basketball player like LeBron James, a hockey great like Wayne Gretzky?

Who’s on your team? Who can make a difference for your company? Who is it that helps make your product better than anyone else in the market(s) you compete? Do you surround yourself with the best you can find? You should.

“What’s your line-up?”

Just sayin’……

Just Sayin’ Blog – The Times They Are (Always) A-Changin’

The ability to accept and adapt to change is a critical component to finding success in business. As much as we find comfort in the places we know best, we must continually push ourselves and our company toward a place that no one else has found yet or will never figure out.

How do you set the bar higher than your competitors so that you can outperform them? That’s a question that you need to answer for your market and business.

In 1964 the singer songwriter Bobby Dylan released a song “The Times They Are A-Changin’” which portrayed a time of great change in the United States. Every new generation looks back at the preceding generation as one being unwilling or unable to change and stuck in the past unable to move forward. The 60’s were a time of great change in social norms, fashion and music, as well as in the political landscape. We’ve been experiencing a great deal of change in retailing for quite some time, but especially so in this new Millennium and it doesn’t seem to be abating.

Right now there is a ferocious retail battle royal in the retail consumer market with two of the largest retailers, Walmart and Amazon.com (big box versus internet retailer), fighting to determine how consumers will buy countless products in the years to come. In 2009 Amazon.com began rolling out a program offering same day shipping in a number of cities. It has since developed a large network of warehouse distribution centers to service its customers across a large part of the United States. To counter Amazon.com, Walmart started a Walmart To Go offering online shopping of a select number of products shipped directly from their store locations to customers. And in a few markets Walmart is offering same day delivery of products. The strategy that Walmart is attempting is difficult and a potentially dangerous one as it already has 4,000 big box stores (including Sam’s Club) which have a very high cost to operate. The margins that Walmart operates under are also very small, so the gambit is one that is sacrificing current profits to maintain and hopefully gain market share against Amazon.com and other retailers unable to compete. When your sales are $ 444 billion a year versus Amazon.com’s $ 48 billion it would seem that you’d have an edge, but last year Amazon.com saw a 41% increase in sales versus Walmart’s 6% overall increase in sales.

Which company is following a strategy that will allow it to be the most successful retailer in the future? Time will tell, but even when you’re Walmart you’ve got to consider that your strategy for taking market share from the mom & pop businesses, which has proven to be such a successful model for years, could ultimately be at risk from other companies with strategies that don’t require big box brick-and- mortar stores. Each is trying to find a unique selling proposition (USP) that will attract consumers to ensure long-term success and neither will stop until it is found.

Who remembers A & P (The Great Atlantic & Pacific Tea Company)?A company that once was considered the Walmart of its time,  A&P held the title of the world’s biggest retailer in the 1930′s when  it had 16,000 stores in the United States. In the late 1930′s A & P began the self-serve grocery store concept, but by the 1950’s it failed to recognize the changing marketplace and failed to listen to the demands of the ever-changing consumers. It eventually became an irrelevant retailer. By not adapting to the changes that were taking place in the marketplace, A & P began a decline in sales that ultimately caused it to file for bankruptcy. The company did emerge from bankruptcy, but A & P probably never again will capture the greatness it had once achieved.

There are many ways for your business to remain relevant and continue to survive in the retail world. Whatever you believe it is that you must do to remain relevant you need to make sure that your customers believe it too. For some businesses remaining relevant may mean selling or merging with a competitor. In recent weeks several businesses have announce that they are doing just that. You’ve probably read about recent acquisitions announced or completed by Gerber Collision & Glass (in Florida), ABRA Auto Body & Glass (in Minnesota), Guardian Auto Glass LLC (in Maryland) and Safelite Auto Glass (in Wisconsin and South Carolina). Of course buying and selling companies in the auto glass repair and replacement (AGRR) industry isn’t new, it’s been going off and on in spurts since the mid 1980s. During the past 30 years, a number of companies have acquired others in the AGRR industry to increase their own market share and separate themselves from or take out competitors. It certainly seems that there has been an uptick in acquisitions of companies of all sizes and I’m sure you’ll be hearing of others very soon.

Other ways you can remain relevant are by finding that USP that separates you from your competitors. So what is that something that only you can do in your market, something that raises the bar so high that your competitors either can’t or won’t try to achieve it therefore distinguishing you from others in the eyes of consumers? If you find that USP, you will survive against other retailers in the battle royal that exists in your market. Of course the need to find that extra something has always existed in business, but maybe more so today with the pace of change that you see across the retail industry. When you see the mega-retailers like Amazon.com and Walmart fighting over current customers to determine which will find the USP that will secure future customers and separate it from others, you know that the same battles that have been going on for years aren’t subsiding anytime soon. It is the same in the AGRR industry and you can be sure that things that you’re doing today in your business will change tomorrow and you need to change with it.

So when Bobby Dylan wrote in the last stanza of his hit tune in 1964,

“The line it is drawn
The curse it is cast
The slow one now
Will later be fast
As the present now
Will later be past
The order is
Rapidly fadin’
And the first one now
Will later be last
For the times they are a-changin’.”

I think that he could have added another word to the last lyric, “For the times they are always a-changin”.

Just sayin’……

Just Sayin’ Blog – A “Reasonable” Path to Follow

In 2012 elected representatives in two states, South Carolina and Massachusetts, introduced legislative initiatives related to the auto glass repair and replacement (AGRR) industry. In both states the initiatives ultimately turned into bills that were passed and signed by the respective state’s governor. The legislative process is often referred to as “sausage making” (attributed to American poet John Godfrey Saxe), taking ideas of a diverse group of interested parties (in this case both large and small AGRR retail companies, manufacturers and distributors, networks or remarketers, third-party administrators, insurance companies and others) who attempt to influence legislation in hopes of making the sausage to their own individual taste. Legislators, with the help of all the interested parties and of course the lobbyists employed to help influence the outcome for their clients, attempt to find common ground so that when possible all of the interested parties see something of what they originally wanted in the bill that is ultimately passed but probably not everything each was hoping to achieve. There is of course always next year…

In the blog I posted on June 12, 2012 titled Auto Glass Repair & Replacement Industry Legislation in South Carolina ***UPDATED*** , I wrote about the law that was passed and signed by the governor in South Carolina earlier this year and what it meant to those who compete in all facets of the AGRR industry in that state. The South Carolina law takes effect on January 1, 2013. In this blog post I’d like to take a look at the bill that was passed and signed into law by Massachusetts Governor Devel Patrick and what its guidelines mean to those that it is truly meant to protect – consumers in the State of Massachusetts. I believe that this law is one that should be a template for use in other states that want to pass AGRR legislation in the coming year.

Massachusetts Bill 2216 took full effect on November 1, 2012 and the law’s primary focus is on what it should be – consumers. When you review the requirements of the law, it states that businesses that provide AGRR services in the state are required to follow a number of guidelines in order to be licensed which ultimately will provide a variety of protections to consumers. Licensed? That seems “reasonable” doesn’t it? With the importance of a safe installation of the windshield to vehicle owners in the state it seems like a “reasonable” expectation that residents of the state should feel confident that the Massachusetts Division of Standards is watching out for them and their passenger’s safety.

What are some of those protections? The first is that any company or individuals doing replacements for Massachusetts residents register with the state and maintain an address in the state. Any new company or a company that is seeking renewal of its license for a shop or shops must have a physical location or locations and that the company maintain indoor facilities to perform repairs to vehicles. Again that appears to be a “reasonable” expectation on the part of consumers.

If you’re going to operate in Massachusetts a company must register its vans as commercial vehicles and obtain all licenses and permits that are required by the various governments (local, state or federal). Again that seems like a “reasonable” expectation of a consumer in the state.

There is a requirement in the law that a “registered motor vehicle glass repair shop shall maintain records for each motor vehicle upon which motor vehicle glass repair services have been performed”.  That the registered motor vehicle glass shop has to maintain records to “show(ing) the usage of all glass parts, major accessory parts, including moldings and major hardware and component parts”. Remembering that the law is really all about protecting Massachusetts residents, the bill goes on to address the requirement that the registered shop maintain records about “the brand, product number or name and lot and batch numbers for the adhesive system product used” (language that relates to the Auto Glass Replacement Safety Standard – AGRSS™) and again is a “reasonable” protection of the consumer in case of a failure or recall of the glass part or adhesive product used. The law requires that the registered shop maintain records for “18 months or for so long as a warranty  on the motor vehicle glass repair service is performed is in effect, whichever is longer.” This is another guideline in the law that is now in effect that seems like a “reasonable” expectation of a consumer in case they experience an issue relating to the AGRR service provided in the future.

The law also requires that the consumer must be provided, upon their request that a “registered motor vehicle glass repair shop shall disclose all information relating to the charges for the repair or replacement services, including the amount of the charges, the identification and line item charges for the parts provided and verification of the parts used, regardless of whether the amount is paid by the consumer or billed to the consumer’s insurance company.” That seems “reasonable”. If a Massachusetts consumer has a glass repaired or replaced, shouldn’t they expect that the price that is being invoiced by the company that is actually doing the repair or replacement is the price that is actually being charged to their insurance company when a claim is filed against the consumer’s insurance policy? Yes that does seem “reasonable”. I’m not sure how a network or remarketer who is used to receiving a “spread” on the work being done by others on its behalf in Massachusetts deals with that new guideline, but it is now the law.

There are also requirements relating to the actions that are allowed to take place by third party administers, networkers or remarketers and insurance companies that operate in the state. The law also includes a section relating to guidelines that outlaws anti-steering by any of the aforementioned to ensure that consumers can use a shop of their choice. No third party administer, network, remarketer or insurance company can require that a Massachusetts insured use a particular AGRR glass shop. That also seems “reasonable” expectation doesn’t it? A law that is providing the consumer the opportunity to choose the shop they want to use via this legislation is a good thing.

The law authorizes the Massachusetts Division of Insurance to not only enforce all of the guidelines, but authorized the authorities to collect fines associated with any violation of the law by those providing AGRR services to Massachusetts residents. The law requires consumer transparency and that too is a “reasonable” expectation that consumers should expect to receive when they are in need of auto glass repairs or replacements.

I believe that Massachusetts Bill 2216 which has was enacted by the state legislature and signed by the governor into law could be a template for similar legislative initiatives in other states in the coming year. In a previous blog titled Network Participation Agreement – “Special Update” I suggested that as an AGRR retailer you might want to,

“continue to focus on the customer and provide exceptional value with outstanding transparency.” 

It seems to me that the Massachusetts law provides transparency and new protections to residents of the Bay State who may require the services that AGRR industry provides to them and those protections are indeed “reasonable”. The guidelines in the law and the protections it provides must be abided by AGRR retailers in the state, third party administrators, networks, remarketers and insurance companies or there are consequences to any who may attempt to circumvent the law. The guidelines provide protections for residents/consumers that are “reasonable” for all to follow and are in the best interest of residents/consumers. The Massachusetts law is, I believe, a great place for other states who are interested in protecting its residents to start. What do you think?

Just sayin’……………

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Just Sayin’ Blog – Hopes for the New Year (Fall Update)

We are now in the last quarter of the year; so how has 2012 been for you so far? In the first month of this year I posted a blog titled ‘Hopes for the New Year’ and then wrote a spring and summer update to that posting. When you take a look back over the past 9 months pretty much all the hopes for 2012 I had have fallen short.

The first hope was that:

“Our industry is affected by three key business drivers:  weather, the economy and miles driven. Sadly we have no control or influence over any of these so I’m hoping for some luck for 2012.”

The weather this year hasn’t been very cooperative for the automotive glass repair and replacement (AGRR) industry. We started with a snowless winter in most of the northern states and as reported by HailReporter.com we’ve experienced about 2/3 of the hail storms that we had in 2011. You know that snow, ice and hail all are big influencers to auto glass breakage and all were busts (pun intended) this year.

Early in the year many experts forecasted the economy would be anemic. Most of those forecasts were accurate. Kiplinger.com provides a variety of information on financial advice and business forecasts via its Economic Outlook section of the website which they regularly update with current outlooks. As of September 27, 2012 Kiplinger reported that:

“The stubbornly tepid economy will persist for the rest of this year and next.”

“It’s clear now that job creation will continue at a sluggish pace in the second half of 2012.”

“The U.S. is likely to add fewer jobs this year than last — about 1.6 million, compared with 1.8 million in 2011.”

“Instead of lending, banks remain wary.”

“Higher gasoline prices pushed inflation in August to an annualized rate of over 7%.”

“Business managers will remain very cautious about expansion at least into the early half of 2013.”

“Expect the recent roller coaster in oil prices to keep on going a while longer.”

“Rising prices of fuel and other goods pose a risk to the increased growth rate, even as consumers shrug off anemic job growth and continue to spend.”

Not very positive views from Kiplinger’s relating to another key influencer – the economy – to the AGRR industry.

Miles driven had been trending upward this year, but with rising gasoline prices the Department of Transportation’s Federal Highway Commission reports that as of July 2012 miles driven starting heading lower again. Earlier this year many forecasted that 2012 would not be a good year for gasoline prices and it appears that the forecasts were fairly accurate. This is the time of year when historically prices decline, but even though the price of oil has moderated; issues with a number of gasoline refineries across the country has caused prices to go higher as reported by a GasBuddy.com blog. The AGRR industry would like to see miles driven go back to the peak levels of seen in 2007 – 2008 for this key influencer.

The second hope was that someone becomes a market leader for the AGRR industry. I’m not holding my breath, but I’m still hoping for that one. My third hope was for fewer imported (non OEM) auto glass parts in 2012 so that prices might be able to stabilize. There may be fewer imports this year, but that’s only because the overall market size is down. The fourth hope was that every windshield be installed according to the Auto Glass Replacement Safety Standard – AGRSS®. It’s the right thing to do for your customers.

 

The fifth and final hope was that somebody would step up and compete against Safelite® at the both the retail and network level. It was a tall order considering the extremely envious dominant position that it enjoys with its strong retail and network. It’s not as though there aren’t individuals or companies at all levels of the AGRR industry with the unrelenting goal (and hope) of providing consumers with an alternative. At some point you have to believe that insurers and fleets might become wary of the tremendous influence the market leader has achieved with its dominant market position. It’s hard for me to see how Safelite® could maintain its market position or really grow its market share larger long-term. Unless they are willing to restart its acquisition program or maintain the onslaught of media advertising over the long-haul it’s going to be tough for Safelite® to move its sales upward in a meaningful way. Time is running out this year, but who knows what the New Year will bring.

 

Here’s hoping that in the last three months of 2012 you’re seeing positive signs pointing to improvement in your business or at the place that you’re working.

Just sayin’……….

 

 

Cartoon courtesy of Tom Fishburne

 

 

 

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Just Sayin’ Blog – Inconvenient Truth(s)

An inconvenient truth is a truth that no one likes to admit, but it is the truth nonetheless. A number of these inconvenient truths exist in the auto glass repair and replacement (AGRR) industry and everyone in the industry deals with them every day.

 

 

Over the years it has become more and more difficult to find success in the AGRR industry. Once upon a time, anyone could own a retail auto glass company and survive, but I think that has changed. One inconvenient truth is that some in our industry aren’t going to survive. As an owner you’ve got to master many new tasks that didn’t even exist 10+ years ago and some owners just aren’t capable of doing so. As a business owner you’ve got to figure out how to attract customers, especially in a time when the weather, the economy and miles driven are working against your business.

As we entered the new millennium, who in our industry really would have seen the need to understand the concept of search engine optimization (SEO) for a “website”? Who would see social media sites such as Facebook™, Twitter™, Craigslist, etc. becoming such an important way to market and communicate with customers; or that the Yellow Page Book™ that we once relied on would become a relic of the past?

Who, other than Steve Jobs, the co-founder of Apple®, would have thought that you could ask someone called Siri, the lady that lives inside my iPhone to list the “closest auto glass shops” near where I live in Chicago. Siri told me “Careful with the broken glass, David,” and then she gave me a listing of fifteen AGRR shops with two names (Safelite® Auto Glass and Gerber Collision & Glass) you’d easily recognize in the market because both are big advertisers in the local media. I also told Siri I was looking for “auto glass in Chicago” and she told me “I found fifteen glass repair shops in Chicago:” followed by a slightly different list of companies, but including the same two names aforementioned. Somebody is paying attention to their internet strategy aren’t they? Are you?

How convenient you make it for your customers to interact with you online will contribute to your future success. If you’re not willing to embrace innovative ways to grow your business in the ever changing marketplace you compete, you will not attract the customers willing to pay you the best price for the products and services that you provide. The truth is that if you’re going to survive and thrive as an AGRR retailer or as a network, you have to know that no one is going to turn the clock back to make it easier for you to be successful in your business. You have to compete in the marketplace with the hand that is dealt to you each day and if for some reason the way business is done changes tomorrow, you’ve got to figure out how to deal with it.

 

Another inconvenient truth is that AGRR networks provide great value to the clients that utilize the various services offered. As much as those who don’t participate in networks complain about the existence of them; clients vote with their feet and they obviously perceive value in the bundled services that networks provide. Can, or will, that change? Certainly it can change, but in the absence of a client deciding to take back direct responsibility for managing its AGRR losses (or a new platform that could take the place of the current networks that operate in the AGRR industry) it’s unlikely. We could certainly see movement of clients from one network to another network in the coming year(s) of course; and depending upon the relationship that your company has with the network that “wins” a new client you can hope that more profitable jobs come your way. But if that hope is what you need to make your business successful you might look for another source of jobs that you have more control over.

 

And staying on the topic of networks; I don’t think that a network that utilizes a “buy/sell” or “spread” (when the network “buys” the glass repair or replacement from an AGRR retailer providing the repair or replacement and then “sells” the repair or replacement to its client at a higher price) pricing model for its clients can continue to exist long-term in the marketplace. Relying on the AGRR retailers who actually do the repairs and replacements to accept lower and lower prices, while continuing to provide high quality repairs and replacements has to someday hit a wall. At some point AGRR retailers will push back and the networker that only makes profit on the “spread”  is going to have difficulty providing its clients with the same levels of service other competitors can provide in the marketplace. Those networkers must know this.

 

You can’t really find the greatest success in your business without surrounding yourself with the best people you can find. Basketball legend John Wooden was quoted as saying,

“Whatever you do in life, surround yourself with smart people who’ll argue with you.” 

Sound advice from a true winner.

If you’ve been in the AGRR industry for a while you’ll remember one of the true gentlemen that help build it –Larry Anderson, President of Harmon Auto Glass back when it was a part of Apogee Enterprises, Inc. On his office desk in Minneapolis there was a small sign that read “Delegate Authority. Ruthlessly.” Larry surrounded himself with many of the best in the industry. There are some owners in the AGRR industry who don’t value the people that work for them. You can’t be successful if you don’t take care of those who work for you and let them have a voice.

 

Yet another inconvenient truth is that just because you have money, it doesn’t mean that you’re going to find success in the AGRR industry. History has proven that businesses owned and managed by those who have direct experience in the industry find the greatest success. Sadly, those that don’t have the experience, regardless of the size of their checkbooks, historically have tended to not be successful.

 

In writing my blog posts over the past year I’ve tried to raise issues about which I think those in the AGRR industry (or are associated with it) should give thought. I know that there are more inconvenient truths regarding the industry that no one likes to admit that I’ve not touched on, so please let me know what yours are.

Just sayin’……

 

  

 

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