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 – 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 – 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 – “Are you better off than you were four years ago?”

In the current presidential election season I’ve been seeing several news outlets play clips of Ronald Reagan in 1980 during the presidential election when at the end of a debate with then President Jimmy Carter he asked a question to the viewing audience,

“Are you better off than you were four years ago?”

The question Reagan asked was a seminal moment during that year’s presidential campaign with the majority of voters answering with a strong “NO” catapulting Reagan into the Presidency.

 

It made me think about how those who compete in the auto glass repair and replacement (AGRR) industry are doing this year compared to the past one, two, three or more years. Are you, your family or the company you work for better off this year than the past few years?

 

This past week I attended Auto Glass Week 2012 (AGW) in Louisville, Kentucky and while there I talked with a number of attendees who all work in the AGRR industry. I spoke with retailers, wholesalers, distributors, suppliers and networkers; and I didn’t get very many positive answers to the question “are you better off?”..… That’s not to say there weren’t those in attendance who felt that their company was doing better this year than over past years, but since I asked the question at an industry conference even people who aren’t doing better may be trying to put a more positive spin on their own story.

 

While at AGW I had several retailers tell me that they’ve been looking closely at what they’re currently allowed to charge to insurers for replacements versus their costs to acquire the part to be replaced, cost of labor and benefits, the cost of urethane (and primer cost if needed), fuel costs for mobile vans, insurance costs, etc. Each of them told a story that they had seen profit margins shrink over the last year or years. One retailer told me about a customer for whom he had replaced a windshield for a few years ago and again replaced the windshield in the same car. The customer happened to be insured with the same insurance company and they still had the invoice from the first replacement in the cars glove box. When the retailer looked at that prior invoice and then looked at the current invoice, with the pricing that he’s allowed to charge under the insurance pricing guidelines, he saw that he was getting less money today for the same replacement. More than a little surprised when he got back to his store he went back to look up what he had paid for the part and urethane from a few years ago versus his current costs and found out that he actually paid more for the part and urethane this time around too. So he got less for the sales invoice and paid more for the part and required supplies to install it; and that doesn’t even take into consideration the increase in all his other costs.

He started to question why he’s agreed to the pricing guidelines and was also giving consideration about whether he should pull out of or stay in the pricing/billing mechanism required to bill for work he does for the network that the insurance company uses to manage its auto glass losses. He asked me what I thought about that. His idea which might be beneficial to some, could also be a very risky strategy for others. Still it is an interesting question to ponder don’t you think?

 

While talking with another retailer he was lamenting the fact that gasoline prices are killing margins. That’s understandable since the price of gasoline has gone up over the past year and depending where you live regular gasoline is up $ 2.00 a gallon since 2009.

The average price of regular gasoline on January 29, 2009 was $ 1.84 a gallon as per a ConsumerReports.org.

As per the American Automobile Association Daily Fuel Gauge Report the average price of regular gasoline today is $ 3.81.

By the way, in 1980 the average price of regular gasoline as per the website 1980sflashback.com was $ 1.25.

The retailer said that the price he’s paying at the pump to fill up mobile vans, along with the delivery surcharge he’s being charged by his auto glass supplier due to the rising cost of gasoline is a killer; with no opportunity to pass those costs along to insurance customers.

 

One supplier complained about competition from foreign suppliers in the market with goods of “lesser quality and price” putting even further pressure on wholesale prices.

Another supplier talked about the market size shrinking and suggesting that surely some weaker competitors will drop out of the market this year which could certainly benefit the stronger competitors.

One supplier mentioned that this coming winter was going to be a good one (of course meaning a bad one) since acorns are abundant and that woolly worms are darker this year and not as light as last year….  I said, “What?” He went on to explain what he read in the Farmers’ Almanac. I went online and looked up both of these legendary prognosticators of a bad winter and he was right! The Old Farmer’s Almanac says that when woolly bear worms are darker in color it signifies a bad winter coming. I found in the Farmers’ Almanac a story on when there are more acorns than normal it can predict a rough winter as well. I’m not sure about either as true predictors of this coming winter’s weather, but maybe if we all also cross our fingers; find a four-leaf clover or a penny face up; knock on wood; see a rainbow; rub a rabbits foot and don’t step on a crack, break a mirror or open an umbrella indoors………  I think you get the idea.

 

Certainly other costs of doing business have gone up over the past year or more which most AGRR businesses are bearing with little opportunity for upside revenue to cover them. Many of us have lived through lean years and bountiful years in this industry. It’s always been that way hasn’t it? Hopefully the pendulum will swing back to an improved time for the AGRR industry in 2013.

 

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.”

– Charles Dickens, A Tale of Two Cities 1859

 

The reality is that the current marketplace demands that everyone in the AGRR industry find ways to deliver or provide a superior product and/or service offering via a low cost model to combat those who are willing to deliver or provide a poor product and/or service via an even lower cost model, if you want to survive.

 

So if you’re asked the question,

“Are you better off than you were four (or one or two or more) years ago?”

what would your answer be? Obviously you are the only one that can answer that question, but here’s hoping that you’re surviving all the turmoil that’s been experienced by many in the industry over the past few years. And that the upcoming year will have a definite swing to the better for you, your family and your business. Wouldn’t that be a welcomed change? You bet!

Just sayin’.

 

Cartoon courtesy of weblogcartoons.com

 

 

 

 

 

21:15

Just Sayin’ Blog – Auto Glass Networks – Part 1

In my last blog I wrote about Safelite® Auto Glass and its SGC Network, which is one of the networks (or third party administrator -TPA) that operates in the auto glass repair and replacement (AGRR) industry in the United States. Safelite® released a new addendum to its Network Participation Agreement that outlines new guidelines or requirements  on AGRR companies that either participate in the SGC Network as sub-contractor’s that Safelite® uses to do repairs and replacements for Safelite® or those AGRR companies that are forced to invoice work they do for certain customers through the Safelite® SGC Network. A reader of that blog suggested that I write about networks in general, so here goes.

While Safelite® is the largest AGRR network it is by no means the only one. All AGRR networks share some similarities, but each is unique in how it operates. Since there is no single AGRR company that covers every square mile of the United States providing services solely through its own AGRR technicians to consumers, every network must attempt to aggregate the services of thousands of disparate AGRR service providers into a single “quasi-retail” service entity. Each of the networks attempt to replicate a full service AGRR company that looks like it is capable of servicing each and every consumer with a single price and service offering that suits the needs of every insurance or fleet company customer it has in its network. That’s where the problems begin.

The first problem a network has to manage is the reality that each of the AGRR companies that participate in its network are not under its control, so a network has to deal with inconsistency of service levels to its customers. That is an issue; a really BIG issue. Currently, a network attempts to counter inconsistencies by stipulating increasingly detailed and specific guidelines in its effort to create some semblance of uniformity amongst a very large, broad and diverse set of participants. How do the networks accomplish that? It takes a great deal of work to try to herd all those cats.  Some do it poorly while some are more accomplished at the task.

It’s quite the challenge though, and perhaps never so clearly indicated as by Safelite®’s recent addendum whereby it now seeks to go beyond standards of repair and replacement practices to actually regulate the business conduct of its participants. By venturing into this area it may seem as a case in point that the network may be leaning into “too big to fail” territory, as it tries to corral a wide range of participants into a single product offering. It is likely to be very difficult, if not impossible for a large network to monitor and enforce all of the stipulations on which it seeks agreement from its numerous participants.

It makes me wonder if the newest Safelite® addendum might actually be showing off some of the real challenges that at least one of the largest network entities is experiencing in trying to solve a problem and meet its entire customer needs.

As I mentioned, every AGRR network must attempt to cobble together its own group of AGRR service providers (participant) attempting to provide a service model that it hopes attracts its targeted customer(s).

That’s the networks strategy. Now how about your decisions as an independent AGRR retailer?  It’s probably best to make your own assessment of how network participation fits into your overall marketing and sales strategy. You may not be able to avoid networks altogether, as most insurance companies require that billing for the service provided be processed through a network. But remember, in all cases, it is the choice of every AGRR company to decide whether it will or won’t participate in the opportunity to receive repairs or replacements from every AGRR network. As an AGRR retailer, you may prefer to do work for one or more of the networks because the network provides value to you in exchange for the value you provide. Some AGRR retailers choose not to agree to the pricing or service requirements that a network has on participating. That again is the choice of the AGRR retailer. It’s probably not a good strategy if you’re relying on a network for your repairs and replacements, but if you do you should be consistently working on lowering your costs as you can be assured that the network will be looking for you to lower the value you receive for repairs or replacements.

Networks are an established part of the AGRR industry and they aren’t going to go away. Legislative initiatives may be attempted state by state to help regulate or moderate how networks operate, but networks do provide value to the customers that use them. Whether or not the networks that operate today will be in business five years from now will be determined by the value, service and quality that it provides to its customers. Only the strong will survive. More on how networks operate in a future blog posting.

Perhaps the best advice for today’s AGRR retailer is simpler than we all have been thinking: “focus intently on the customer, listen to what they need, and set about to do the right thing.” A very simple and straightforward concept.

Sam Walton is quoted as saying,.

 

“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

Stay focused on your customer and provide value to them and you should do okay.

Just Sayin’….

 

 

 

 

 

 

 

56

Just Sayin’ Blog – A Lesson in Perseverance

(Autographed Pin Flag from Ernie Els last major win in 2002 at The Open Championship held in Scotland)

Perseverance is a key trait to achieving success in any undertaking. It doesn’t matter if it’s a personal one or one that you have in your business life. It doesn’t matter whether the undertaking is a big or small one. The ability to maintain an unrelenting focus on any goal that you are pursuing requires you to work through the difficulties and obstacles that confront you.

This past Sunday you saw that trait in the 2012 Champion Golfer of the Year – Ernie Els – by his winning The Open Championship that was played this past week at Royal Lytham & St Annes Golf Club in Lancanshire, England. The Open is the 3rd of the four majors (The Masters, The U.S. Open, The Open Championship, and The PGA Championship) which are held each year and where winning one of them defines a PGA Tour player’s career.

Sunday’s final round was a test for the 83 tour players who had made the cut after the end of the second round on Friday. Only Ernie and 8 other players were able to shoot under par on Sunday with Ernie carding a 2 under par. After 72 holes were played during The Open Championship this year only 18 golfers scored level par or better. Ernie was able to put pressure on Adam Scott who had started the final round in the lead at 11 under par and who led the tournament through 16 holes. Ernie made a crucial birdie putt on the final hole of his round that placed added pressure on Adam Scott who ended up bogeying the final 4 holes on Sunday and saw his goal of winning his first major championship slip away.

Ernie Els is a storied professional golfer who has certainly had great successes in his 22 year career, but at 42 years of age he hadn’t had a win on the Professional Golf Association (PGA) Tour since 2010 (the Arnold Palmer Invitational) and earlier this year he was questioning whether he would ever be able to find a way to win again, let alone win a coveted major. With all the success Ernie had achieved in his career he seemed to have lost many of the considerable natural talents, along with ones he had developed over years of practice that together made him a successful PGA Tour Pro. Over the past several years he changed a number of people he surrounded himself with who he felt could help him find the right mix of ingredients that would allow him the opportunity to win again. As he focused on 2012 he had a number of heartbreaking near misses at winning tournaments which would have allowed him to gain an invitation to The 2012 Masters Tournament, a tournament which he had played for 19 consecutive years. Having suffered that professional setback to his career Ernie continued to work on his game, despite many opining that his career was over or certainly had to degrade to a level where he would be unable to again regain the level of play he had achieved.

Ernie’s ability to utilize all of his talents to emerge as The Open Champion this year is a testament to his perseverance. After winning he thanked his wife Leizl, along with his daughter Samantha and his son Ben for all the support they give him. Ernie also thanked a number of others who stood by him as he worked his way through the many issues that he faced in his journey to again win. And winning a major; a feat he felt he may have never achieve again, but did with hard work, dedication and perseverance.

If you operate a business in the retail or wholesale automotive glass repair and replacement (AGRR) industry; or if your business sells products to those in the industry, 2012 has probably been a year full of difficulties and obstacles requiring you to show perseverance. As I mentioned in a recent blog titled “Hopes for the New Year (Summer Update)”, the key drivers – the weather, the economy and miles driven – have not been trending positively this year and have been affecting many (6 out of every 7 of you in a recent survey question I asked) in the industry. Without those key drivers being a help to many in the industry, business owners and those who lead organizations are required to find solutions which will allow them to survive the negative environment we find ourselves. How you persevere and deal with the issues your business faces today will have a long-lasting effect on your business and for all the people who work for you. The various steps that you’re taking now will unquestionably determine whether your company will be able to take advantage of opportunities that will certainly exist in your market when the key drivers turn positive and business improves. What steps are you focusing on in your business to ensure that you’re in position to take advantage of your competition when the current environment begins to improve?

Ernie Els didn’t lose sight of what was most important for him to focus on during Sunday’s final round at The Open and that was his own game. He could only do his best, making the best decisions in ensuring that he played at the highest level he could which would allow him to post the lowest score possible and put him in a position to win. Ernie was able to accomplish that by changing his strategy on how he was going to play those final 9 holes. He knew he was lagging behind and that Adam Scott was leading by 4 strokes with just a few holes to play. Ernie decided that he would become aggressive in how he played those final holes. At age 42 he never lost hope that he could play with against the best golfers in the World and find a way to win. By utilizing skills he had accumulated over his lifetime; and with the help of those he surrounded himself and trusted most he once again found the path to success and to win and win a major.

It certainly isn’t easy to make the hard choices that business owners or business managers must make in order to be fully prepared for when business does improve, but those who just sit by and watch their market share dwindle as they hope for better days aren’t going to be in a position to take advantage of opportunities when they do appear. You have to be able to take an honest look at your business and assess the value proposition that your business brings to customers in your market, you have to evaluate the capabilities of your competitors and take all of the appropriate steps that you can to ensure that you are positioned correctly, which will allow you to take advantage when things do improve in your market.

Ask those people closest to you that you trust and respect for their opinions; solicit their honest views of the pros and cons of your abilities, of your company in the marketplace, ask them about their views of your fellow workers. Are you marketing your company properly? Are you just copying what your competitors are doing or are you trying new things to improve how your business operates? You can’t just sit back and hope for the key drivers to improve because they might not improve fast enough, you certainly can’t just sit back hoping that a competitor or two in your market will falter or that something else will somehow happen to improve your business prospects. You have to focus on what can you do to improve your business; without worrying what others are doing around you. What steps can you take to ensure that you’re ready when things turn positive for you in your market?

You will find that by your continually working hard to find ways to improve how you market or position your business to your customers, making sure that you have the right mix of talented people to work with you in your business and then ensuring that your business is operating as a “low cost” provider in your market that you will be prepared to find new success and to win in your marketplace when the key drivers begin to improve. Work through difficulties and obstacles that you face so that you can persevere.

Admittedly, sometimes even by working hard and being dedicated to your business things may not work out for you, but you can’t stop trying. Ernie Els never gave up on his goal. He believed that if he worked hard and continued to tweak his game; he’d find a way to beat his fellow competitors and win again.

So can you.

Just Sayin’……

 

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Just Sayin’ Blog – It’s all a matter of perspective isn’t it?

Television station WAVE Channel 3 in Louisville, Kentucky, aired an investigative “Troubleshooter” news segment titled “Windshield fraud growing, costing drivers money” two weeks ago. The station reported on the sales tactics one company uses in the Louisville market (and other markets in the United States) to find customers who may be in need of auto glass replacements.

 In the segment, WAVE “troubleshooter” reporter Eric Flack spoke with a former auto glass technician from the company. The auto glass technician evidently had contacted the station with a number of accusations relating to his former employer. The story included interviews with a fraud investigator from Arizona, the director of the Kentucky Insurance Fraud Investigation Division and a gentleman that WAVE reported was a sales representative for the company that was the focus of the investigative report.

As someone who has spent the majority of my life in the auto glass repair and replacement (AGRR) industry, the investigative report WAVE Channel 13 news aired made me feel a bit uncomfortable. Perhaps it did for you as well.

There are countless sales and marketing tactics that companies, large or small, use to market AGRR services to influence the decision maker(s) for the key customer groups – whether they are insurance, commercial or cash customers. The barriers that exist today for a small company attempting to access customers have never been higher. Many small companies find themselves in a position where it is very difficult, if not impossible, for them to compete for one or more of the key customer groups due to the changes that have taken place in how customers seek replacements or how insurance company glass losses are managed. Many companies are using more aggressive tactics to attract customers so that they can survive in the marketplace. I’m not suggesting that all of these various tactics are either right or wrong. You may hear the term “windshield bully’s” used to describe some of these tactics.

It shouldn’t come as a surprise that an AGRR company would attempt any number of tactics to attract customers, especially when facing possible extinction. The weather, the economy and miles driven have been negatively influencing the market over the past several years. Everyone competing in the AGRR industry is scrambling to find the right recipe for survival in their market(s). I think that a fourth key market driver could be added into the equation and that additional driver is the dominant AGRR retailer, who also happens to be a leading insurance claims administrator, wholesaler and distributor as well.

The dominant retailer uses a number of its own sales and marketing tactics to ensure its position in the marketplace. Perhaps the key tactic is the ability for it to spend millions and millions of dollars on national television and radio advertising to attract current customers to its platform. This tactic also provides the opportunity for the dominant retailer to influence long-term customer choice as well. The attempt to influence customer choice long-term is very costly and not easy to achieve in the large diverse United States market, but it is a tactic that the retailer’s owner has used with great success across the globe.

Many in the industry view other tactics the largest retailer uses as being aggressive. One tactic competitors complain about is the attempt to steer an insurance customer that must file an auto glass loss claim through the retailers claims administration business to its own retail division; even though the customer has requested that another retailer do the work for them. How many of you have experienced that tactic when you are required to call the largest retailer’s claim administration division to file a claim with your customer on the line? I have heard many a customer service representative say to the retailer claims administrator while on a 3-way conference call with their customer on the line:

“You do know that I’m still on the line right?”

or

“I’m still on the call and you’re talking to my customer trying to take the job away.”

Has that happened to you and/or to your customers when they want to use your service for their glass needs? Is it possible that the largest retailer is the true “windshield bully”?

 

Whether you’re with the company that was highlighted by WAVE Channel 3 in Louisville or you’re the dominant retailer in the United States; many in the AGRR industry find some tactics cross the line of reasonableness, may go against the rules insurers have set for doing work for their insured’s or in some cases tactics may be against the law, but in the current environment companies may try things that they would have never have considered just a few years ago in order to survive.

It’s all a matter of perspective isn’t it? When looking through the eyes of two different competitors, one company sees the other company as being too aggressive or maybe a “windshield bully”, while the other is just doing what they believe they need to do just to survive when faced with the tactics used by others in the marketplace.

Just sayin’……..

Interview with Eric Asbery, President/CEO www.Equalizer.com

Today I’m talking with Eric Asbery, President of   Equalizer Industries, Inc., an undisputed premier provider of innovative tools and products for the auto glass repair and replacement (AGRR) industry in the world. The company was founded by Eric’s father Ray Asbery in 1987. Ray unexpectedly passed away last September 27th at the age of 67.

Over the years Equalizer has received many awards, including several “Best of Show” awards. Company executives have also received a variety of industry awards including Eric’s being recognized in 2007 by the National Glass Association (NGA) with its prestigious NGA “10 Under 40” award; in 2005, Equalizer Vice President of Sales, Gilbert Gutierrez was awarded the prestigious Len Stolk Award” and Ray was honored by being awarded in 2004 the “Carl Joliff Award” by the Independent Glass Organization, in 1994 the NGA’s “Professional of the Year” and in 1992 Inc. Magazine’s “Entrepreneur of the Year” award. In fact, Auto Glass Week 2012 will be dedicated to Ray’s legacy.

Equalizer is headquartered in Round Rock, Texas which is about 15 miles north of the Texas state capitol of Austin.

 

DR:  Thank you very much for taking the time to answer some questions Eric. I’m a big fan of Equalizer and I only wished that the tools that your company has developed and brought to the market over the past 25 years would have been available when I first started as an auto glass installer 40 years ago.

Eric Asbery:  I hear that very often. As I was growing up, my Dad was transitioning from being an auto glass technician to a manager over several locations. I can remember him always talking about how there were no specific tools that technicians could use and that the taking glass out of automobiles was getting harder.

 

DR:  I know that your father got his start in the AGRR industry with U.S. Auto Glass. How did long did he work for Joe Kellman and what were his responsibilities while at U.S. Auto Glass?

Eric Asbery:  Actually, Dad got his start in AGRR as an installer in Louisville, Kentucky in the early 1960’s. He was hired in 1985 by Joe Kellman to manage the Austin, Texas market for U.S. Auto Glass. He worked there until late 1987.

 

DR:  What was the impetus for Ray to start the company and how was he able to envision the tools he developed over the years?

Eric Asbery:  Early in 1987, Dad and his technicians encountered the problematic 1986 Ford Taurus. It was a radical new design and the lower part of the windshield was attached by a thick, heavy bead of urethane that was nearly impossible to use conventional tools to remove it without breaking the windshield further. Many technicians were so frustrated by it that they resorted to just breaking it out with a hammer. One Saturday morning, after several of these tough jobs had come through his shop, Dad woke up with the design for the original Equalizer tool in his head. He went to work that Monday with the first Equalizer after building it over the weekend in our garage.

Dad was always inventing. He was a working man that really enjoyed working with his hands. He was always trying to improve upon any working situation he encountered. He listened to those around him, when they encountered a problem with their daily work; he always tried to make their job easier. Whether it was a tool or technique, it was very enjoyable for him to make work more productive for everyone.

 

DR:  Equalizer is known for its products all over the world. How did that happen and what are you planning to maintain and grow that presence, especially beyond North America?

Eric Asbery:  In the early days of Equalizer, we received a lot of attention on a worldwide scale. Every trade show we exhibited at or magazine we advertised in, people who did auto glass anywhere in the world were drawn to us because we were producing tools that hadn’t existed before. The timing was right and we knew it. We were fulfilling a need, right when it was needed the most. We simply focused on providing great customer service and the world came to us.

We now have over 100 different distributors worldwide; we are constantly traveling, researching current automotive glass installation trends and training the appropriate people necessary to satisfy the needs of technicians everywhere. As the global economy allows, we are always in search of new areas to market and support our products.

 

DR:  Equalizer has always been known as the dominant company for auto glass replacement tools. Do you plan to do the same for repair?

Eric Asbery:  The auto glass repair market is something we have always invested in. There are several great repair systems out there and we have carried several of them over the past several years. If our coverage of this market is consistent, then there is a chance we can become the dominant supplier. However, our primary goal is to ensure that any product we offer gives the auto glass technician the best opportunity to do their job effectively and easily.

 

DR:  Many people are always looking forward to the new Equalizer catalog. In the last several years, you also established a great presence on the internet. Do your customers still like to look through a paper catalog or is there a shift to see the products through electronic media?

Eric Asbery:  We have found that even though there is an ever-growing part of the industry that is becoming electronically inclined, most people still like to “flip through pages” of our catalog and that will be the direction we will continue to go until we sense that a major shift to electronic media is on the horizon. We think our catalog will continue to stay in printed form for quite some time but we always alternately develop and make available electronic versions of our promotional or marketing materials.

DR:  When did you join Equalizer and what areas of the company were you responsible? How did your responsibilities grow over the years?

Eric Asbery:  I have been at Equalizer since day one. My role at Equalizer, until 2005, had been directly related to developing Equalizer’s brand, image and marketing presence. In 2005, Dad (then 61) and I began work on my transitioning to the daily management of Equalizer. We both considered that transition complete in late 2010. Although Dad had never had any definitive plans for retirement, we all figured he’d work at Equalizer into his 80‘s. In retrospect, I am very relieved we had this foresight.

 

DR:  I know that many of the tools that Equalizer has developed over the years have unquestionably helped reduce countless injuries of auto glass technicians. The number of cuts, lacerations, back and neck strains requiring visits to hospital emergency rooms has had to have gone down by those using your tools and products. I know many companies supply auto glass technicians with Equalizer tools just for that reason. Hopefully this question doesn’t make you feel uncomfortable, but do you hear from those who buy and use your tool thanking you for how Equalizer tools make it easier for them to do their jobs?  

Eric Asbery:  It is a very humbling experience to hear from someone who has benefited greatly from something you created for them. We receive feedback from hundreds of technicians each year thanking us for offering these products to them. My favorite memories from over the years have been when a technician has walked up to my Dad or any of us working at a trade show or open house and proceeded to tell a “before and after” story about our one of our tools and how it has greatly impacted their life in a positive way. It is truly the best part of my job.

 

DR:  When new car models come out each year they often have auto glass parts factory-installed in ways that many responsible for replacing those parts feel were designed by diabolical design engineers who seem to try to cause problems. How quickly do you start looking for replacement solutions for those parts that could cause difficulties?

Eric Asbery:  We have a network of “Equalizer Inventors” who are mostly auto glass technicians who have worked with us to design or create products over the years that we sell and/or produce for them. These technicians will encounter new design problems during their job on a daily basis and within a very short time they inform us of it. In many cases, they will offer a potential solution based on their experience and that’s what gets the ball rolling to create a product that will simplify the experience.

 

DR:  With the sudden great loss of your company’s leader, mentor, friend and your father, what plans do you have in the future to continue to grow the business and provide the AGRR industry with leading edge and innovative products in your leadership role?

Eric Asbery:  Since the beginning of our company, our focus has been to serve the needs of auto glass technicians everywhere. We developed relationships and processes to ensure we have been on the leading edge of technology for this industry. Nothing has changed or will change in this area. This is why Dad founded this company, this is our purpose.

We are always on the lookout for the next big thing, the next viable trend. Be it a tool, a process or just an idea or concept. We will travel, learn, adapt and teach. We will continue to gain from the experience of technicians in the smallest auto glass shop to the biggest national chain. We will always listen, respond and provide the best products available. This is what we do.

Thank you very much for spending the time to answer my questions Eric. You have a great company and I wish you continued great success.  You and your team have provided the AGRR industry with amazing products. I know that many join me in anticipation of the next great product that you develop to further improve the installation process as well as the safety of technicians around the world. Thank you for all you and your company do.

Just Sayin’

Equalizer Industries, Inc.

Interview with David Carnahan from Mainstreet Computers

Today I’m talking with David Carnahan, the owner of Mainstreet Computers, Inc. Mainstreet opened for business in May 1982.  Mainstreet is a leading provider of software solutions to the automotive glass repair and replacement (AGRR) industry. I’ve been fortunate to have utilized David’s software products to help manage AGRR businesses in the United States, as well as Canada. Over the years, I’ve found David as a businessman who has the highest of values, principles and ethics in operating Mainstreet. This April Mainstreet celebrates its 30th year in business.

DR:   Congratulations David! That is quite an accomplishment in the longevity of any business and one you and your employees should be most proud. How did you find yourself providing software solutions to the AGRR industry?

David Carnahan:  In those early days we sold to virtually any industry, but we concentrated on smaller businesses.  This was before the days of “off the shelf software”.  We wrote or modified our programs to suit each company we sold.  After selling to several glass shops we became more familiar with their needs and saw an opportunity to become a complete solution to glass shops across the country.  So beginning in the mid 1980’s we began focusing on glass and Glas-Avenue born.

 

DR:  What do you feel are the keys to your success in being able to build, sustain and grow Mainstreet Computers over the past 30 years?

David Carnahan:  Though there are many “keys to success”, I’d like to mention two …

1.     A mentor to Steve Jobs (the founder of Apple Computer) is quoted as saying that a company that lasts must be willing and able to reinvent itself.  I believe that is true and particularly true in the technology field.  When we started serving the glass industry back in the 1980’s we concentrated as much on selling hardware as we did on selling software but by the early 1990’s customers were better served buying hardware locally, so we changed our whole model and focused strictly on software and software solutions.  Then about seven years ago we extended that service into designing and developing websites which has proven to be a great “re-invention” as we have helped scores of glass (and other service industry) shops “re-invent” themselves and move from dying to thriving.

2.    A lasting company must have a long term mentality.  We have always hired people with the idea they would work here until they retire.  The cost in time and customer frustration of hiring and training new people is much greater that most people realize.  Most of our people have well in excess of 15 years with us.  When your people don’t expect to be around in a few years it affects every facet of the company from new product development to customer support.  It’s also makes the work environment more rewarding.

 

David Carnahan (left) with Programmer Dave Daniels (right)  who recently celebrated his 25^th year with Mainstreet.

DR:  How would you describe your management style and who has been a great help to you in building your business?

David Carnahan:  I am a Christian and my faith impacts the way I lead the company.  I view Mainstreet as God’s company not my own, so I’m responsible to be a good steward of His company.  My philosophy is to find good people, treat them right and provide an environment where they can shine and excel in their strength areas.  I have a speech that I give prospective employees.  I tell them that I don’t believe in micromanaging, so … “if you’re the type of employee that only performs well with someone constantly looking over your shoulder to make sure you do your job, you won’t fit in here.”  Our people know their jobs and the mission of our company and they “just do it”.   I believe the longevity of our staff speaks for itself.

 

DR:  What lessons have you learned in growing your business that you think could be helpful to others seeking similar success?

David Carnahan:  Don’t give up.  Success is not an event, it’s a process.  I believe slow steady growth is much more stable than explosive growth. Never stop trying to improve and never take anything for granted – customers, sales or employees. 

 

DR:  What are the services that Mainstreet Computers provides to its customers and how have those changed over the past 30 years?

David Carnahan: We provide fully integrated Point Of Sale and accounting software to retail glass businesses – from small “mom and pop” shops to large multi-store chains.  We also offer website design and web hosting geared toward helping the glass shop market themselves and increase sales through the internet.  The biggest change in our strategy came 25 years ago when we began focusing primarily on the glass industry.  This strategic decision of ‘narrowing the focus to broaden the impact’ has enabled us to really gain an understanding of the needs of the glass industry.

 

DR:  How do those differ from your competitors? 

David Carnahan: Mainstreet is the first and only glass software provider to offer a fully integrated accounting system.  We wrote it ourselves and it’s specifically designed to work with our Point Of Sale program. Since we wrote it we fully support every part of it, so we’re the only contact a glass shop has to make for help with their software.  We are also the only glass software provider designing websites for the industry.

Beyond basic products, the other characteristic that sets Mainstreet apart is our level of support.  We have more people with more years of experience supporting our products than any other company.  We are relentless in our commitment to provide support that is unparalleled in the industry.

 

DR:  You’re an innovator in the industry. What were the main reasons you felt that strategy would work as successfully as it has?

David Carnahan:  The reason for our success is simple.  Mainstreet’s software and services meet a real need by enabling glass shop owners to benefit from technology without being or becoming technology experts.  We provide the technological expertise while they concentrate on running their glass business.

 

DR:  I very much appreciate your taking the time to talk with me today. In closing, is there anything further you’d like to share with the readers of this blog?

David Carnahan:  Thank you David for all you do for the glass industry.  You have a depth of knowledge and experience in this industry that is very rare.  I hope you continue to advocate for the independent glass shop owners.

Thank you David and thanks again for taking the time to talk. I know that you, your employees and company will continue to have great success in the years to come.

Just sayin’.