Archive for category Insurance

Just Sayin’ Blog – A Matter of Self-Interest or Consumer Choice

Dominos

 

Last June 3, 2013 Dannel Malloy, Governor of the State of Connecticut signed a bill that was passed by Connecticut’s House and Senate the previous month into law. This link to the summary of the act that was first introduced in the Insurance and Real Estate Committee of the Connecticut House states,

“The act requires that a glass claims representative for an insurance company or its third-party claims administrator, in the initial contact with an insured about automotive glass repair services or glass products, tell the insured something substantially similar to: “You have the right to choose a licensed glass shop where the damage to your motor vehicle will be repaired. If you have a preference, please let us know. ” By law, appraisals and estimates for physical damage claims written on behalf of insurers must have a written notice telling the insured that he or she has the right to choose the shop where the damage will be repaired (CGS § 38a-354).”

This law seems to be a reasonable approach to provide and ensure consumer choice to the residents of Connecticut.

As it appears on the State of Connecticut’s General Assembly bill tracking web site the law – Public Act Number 13-67 – states,

 “AN ACT CONCERNING AUTOMOTIVE GLASS WORK.

To require an insurance company doing business in this state, or agent, adjuster or third-party claims administrator for such company to provide additional disclosures to an insured regarding such insured’s right to choose a licensed repair shop or glass shop where such insured’s motor vehicle physical damage or automotive glass work will be performed.”

Again, this language also seems to be a reasonable expectation for residents of the state. Everyone believes that consumer choice is a good thing right?

The signing of the law was reported by number of industry publications (glassBYTEs.com, Autobody News, Automotive Fleet) due to the dramatic effect that it would have when fully enforced on insurance companies claims management programs, as well as automotive glass repair and replacement (AGRR) industry players (Harmon Solutions Group, NCS/Netcost Claim Services, TeleGlass/Strategic Claims Services, Gerber National Glass Services, PGW Lynx Services, Safelite Solutions)  that provide network and/or Third Party Administrator (TPA) services to the insurance industry. AGRR networks and/or TPA’s tend to steer business to either company owned stores and/or to affiliated network repair or glass shops that conform to the pricing or service requirements of the network and/or TPA. That has been a long standing business practice of networks and TPA’s and it’s not hard to understand the financial benefit to these companies to continue doing so. The passing and subsequent enforcement of this law requires a pivot away from the long-standing AGRR industry practice of placing the decision of which company provides the repair or replacement into the hands of the consumer needing service and out of the hands of a network and/or TPA that has always been heavily involved in the decision. This also seems to be a positive for consumer choice. Again, everyone believes that consumer choice is a good thing right?

In order to protect its network and TPA business Safelite Group, Inc. and Safelite Solutions LLC (the Plaintiffs-Appellants) have gone to court against GEORGE JEPSEN, in his official capacity as Attorney General for the State of Connecticut and THOMAS LEONARDI, in his official capacity as the Commissioner of the Connecticut Insurance Department (the Defendants-Apelles) in hopes of overturning the law. The law clearly prohibits the steering of Connecticut consumers to specific repair shops by TPA’s and/or auto damage appraisers so one can understand the self-interest involved. Connecticut’s “Department of Consumer Protection” web page states that:

“Ensuring a Fair Marketplace and Safe Products and Services for Consumers”

The purpose of this government department is pretty obvious by its title. Public Act Number 13-67 protects the interests of consumers in the state and their “right to choose”; and the State of Connecticut unquestionably is within its rights to enact such a law, right?

If the State of Connecticut prevails in its defense of the constitutionality of Public Act Number 13-67 through the appeal process, as Safelite continues to fight to overturn the law, the future landscape of networks and/or TPA’s that provide AGRR services to consumers in the state will forever be changed. And if this law stands it will have an effect on the landscape of the AGRR industry in the entire United States. You can be sure that similar consumer protection bills will be introduced in state assembly’s’ across the country. Is that why Safelite is so strongly fighting this law duly enacted by the State of Connecticut?

If you visit the Safelite web site you will find that the company describes Safelite Solutions LLC as providing:

“….complete claims management solutions for the nation’s leading fleet and insurance companies.

The company currently serves as a third-party administrator of auto glass claims for more than 175 insurance and fleet companies, including 19 of the top 30 property and casualty insurance companies. Safelite® Solutions manages a network of approximately 9,000 affiliate providers and operates two national contact centers in Columbus, Ohio and one in Chandler, Arizona.”

The Connecticut law could serve to undermine a business practice that has existed in the AGRR industry since the late 1970’s. The genesis of call centers (a.k.a. a network or TPA) was when Joe Kellman, former owner of Globe Glass & Mirror, visited an auto glass call center facility in Bedford, England operated by Belron’s Autoglass and brought the idea back to the United States starting the U.S. Auto Glass Network. Since then, the impact, influence and control of consumer auto glass losses by networks and/or TPA’s operating in the AGRR industry has continued to grow each and every day. The networks and/or TPA’s obviously work hard to control and steer auto glass repairs and replacements to either company owned stores or to glass companies that agree to join and follow pricing arrangements that benefit the goals of the network and/or TPA. A business practice worth fighting for right?

The State of Connecticut is interested in protecting consumers in the state, who are in need of auto glass repairs or replacements, from being steered by a network and/or TPA. This law seems like a reasonable next step action in a state where those that are engaged in the AGRR industry are required to be licensed by the state (in my last blog I wrote about “Is it Time for Licensing?” in the AGRR industry). The Department of Consumer Protection oversees the licensing flat glass and automotive glass work.

We will have to wait for the appeal process to work its way through the courts to find out if this law stands, is amended or falls. But whether you believe that the law is a positive development for Connecticut consumers or you believe that the law violates free speech in commerce, the fight will continue as the stakes are too high. If the law passes through the appeal process and stands, it could be the tipping of the first domino and could be the beginning of big changes for the AGRR industry.

So where do you stand on Public Act Number 13-67? Are you on the side of consumer choice or on the side of the networks and/or TPA’s? Perhaps it depends on your own self interest.

Just sayin’.

 

Dominos

 

 

Associated Articles and Reference Material:

Zauderer’s Scope (page 589) https://www.law.upenn.edu/live/files/1566-keighley15upajconstl5392012pdf

http://www.autobodynews.com/news/regional-news/northeastern-news/item/7277-connecticut-governor-signs-anti-steering-bill-into-law.html

http://www.nldhlaw.com/content/uploads/2013/07/UpToSpeed_July2013A.pdf

http://www.glassbytes.com/2014/04/connecticut-officials-file-brief-in-support-of-anti-steering-law-in-appellate-court/

http://www.glassbytes.com/newsConnAutoGlassBillGoestoGov20130523

http://www.glassbytes.com/newsConnecticutSteeringPasses20130606

http://www.glassbytes.com/documents/03192014SafeliteSecondCircuitBrief.pdf

http://www.glassbytes.com/documents/04232014SupplementalIndex.pdf

http://www.glassbytes.com/documents/04232014JepsenBrief.pdf

http://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=5072&which_year=2013

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Just Sayin’ Blog – Wind at Our Backs? – Part III

Last September and December I wrote blogs titled “Wind at Our Backs?” and “Winds at Our Backs? Part II” writing that “it appears that we may have some wind at our back” when looking at the key drivers (the weather, the economy and miles driven) of the automotive glass repair and replacement (AGRR) industry. If you focus mainly on the weather as a key driver and look at what we’ve experienced in the United States this past winter, many would describe it as harsh or brutal in much of the country. Based on the weather over the past week, even though the vernal equinox or the first day of spring arrived on March 20, 2014, our winter really hasn’t seemed to have ended yet. I live in Chicago and this past winter was the coldest (December – March) ever on record and snowiest (9.7 inches from snowiest on record – 1978-79 as reported by the WGN-TV Weather Blog) I’ve ever experienced anywhere, except maybe for one when I lived in Montreal.

Chicago Lakefront 2014x

Chicago/Lake Michigan February 2014

The Old Farmer’s Almanac forecasted that the 2013 – 2014 winter season would bring us colder weather and heavier snowfall in many sections of the country and for those who were hoping that the forecast would come true they weren’t disappointed. Stretching from the Rockies to the East Coast the weather has been a big boon to the industry with extreme or unseasonably cold weather that included snow and ice storms. I’ve talked with a number of retailers and suppliers who had a great first quarter of 2014 which followed a rather lackluster 2013. One supplier told me, with his tongue firmly planted in his cheek, that on a trailing twelve months he looked like a genius since all the strategies that his company had used in the past year to increase business had really paid off.

Starting in 2011 The Weather Channel started naming winter storms that are strong enough that meet the criteria set by the prognosticators. For the winter of 2013 – 2014 The Weather Channel’s list of 26 alphabetical names were developed with the help of a Bozeman, Montana high school Latin Class. The potential storms this winter began with the name Atlas and will end with Zephyr. Through today there have been 24 named storms with the current storm that hit the Upper Midwest with up to 18” of snow before heading off to Canada. Since it is now the first week of April and a couple of weeks since the first day of spring winter storm Xenia is dumping snow in parts of Minnesota, Wisconsin, Michigan, South Dakota, Nebraska and Iowa. Enough already. Although this winter may have been good for some in the AGRR industry I’m thinking of it more like a Dr. Seuss book I read countless times to my sons when they were growing up – “Marvin K. Mooney Will You Please Go Now!

 

When you look back at this past winter named storms starting out with Atlas in early October that delivered feet of snow from the Rockies to the Upper Plains winter storms kept hitting almost every week including some areas that haven’t seen much in the way of winter weather for a few years. In early February starting out in Georgia and hitting especially the Atlanta metroplex were a couple of storms that CNBC described as a catastrophic ice storm that effectively shut down Atlanta for several days before continuing on up the east coast wreaking havoc along the way. In early March the greater Dallas-Fort Worth and North Texas area got hit with an ice storm that crippled the metroplex. The Carolinas got hit by a couple of storms in February and March with the last one being Ulysses hitting around March 10th. If you live in the North you expect to get snow and you’ve learned how to deal with it, but it’s not quite the same below the Mason-Dixon Line.

Every year there is a contest that awards a trophy called The Golden Snowglobe that recognizes the snowiest city with a population of 100,000+. The trophy typically goes to Syracuse, Rochester or Buffalo, New York each year, but as of today it appears that for the winter of 2013 – 2014 the winner for The Golden Snowglobe will be Erie, Pennsylvania with 137.2” of snowfall.

For this blog I’m not going to address the economy or the miles driven. Neither of those has really changed all that much since my December blog. Regardless whether you feel the wind is at your back or not, you and your employees are the key driver(s) in your business. How you’re dealing with the various opportunities and obstacles that you face each day in your business determines the success you achieve. All that really matters is what is going on in the market or markets you operate and I hope that you’re achieving success in the markets you compete.

As good a predictor that The Old Farmer’s Almanac was for this past winter, the prediction for the 2014 – 2015 winter season from this long-time source hasn’t been published yet, but I recently saw a very detailed prediction made by The Weather Centre for next winter. Please take the time to read and interpret all of the information and let me know what you think what the upcoming winter will be like.

Since weather is so important to the AGRR industry, in the coming months I’m hoping that you get some hail in the markets you compete. I know a couple of suppliers that think that could be their winning strategy for 2014.

Just sayin’.

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Just Sayin’ Blog – A Matter of Fairness

Recently I was forwarded a letter that Safelite Solutions (“Safelite” “SGC Network”) sent to an auto glass repair and replacement (AGRR) company.  The letter related to work that the company had done for a consumer that happened to be insured with a company for which Safelite manages glass losses. The AGRR company had done a replacement and was required to send the bill for the work that was done for the consumer through Safelite in order to receive payment. The letter that was received started out stating:

“The SGC Network is currently in the process of performing a random fast cure kit Audit.”

The letter went on to state:

“Please fax copies of the work orders/invoices that include the urethane lot stickers. Do not send proof of purchase or receipts. The only acceptable documentation is the urethane lot sticker attached to the invoice or work order. Please forward to ATTN: SGCNetwork at 614-210-9941 within the next three business days.”

Have you seen or received one of these letters? I hadn’t seen one before. What was requested certainly seemed reasonable to me and the company also thought the request was reasonable. The company had the information readily available since the information is required under various sections of the Auto Glass Replacement Safety Standard that is administered by the Auto Glass Safety Council™. What was interesting about the request was that Safelite was taking on the role as an independent 3rd party auditor in asking for the information. Who do you think performs that function when and if Safelite audits its own use of a “fast cure kit”?

Take a minute and look up the word “fairness” on dictionary.com and you’ll find the following:

Noun

“the state, condition, or quality of being fairor free from bias or injustice; 

evenhandedness”

            Adjective

“free from discrimination, dishonesty, etc; just; impartial”

            Adverb

“in a fair way; correctly: act fair, now!”

It’s also interesting to see the word fairness shown via TH!NIKMAP’s Visual Thesaurus®.

 Fairness 2

 

So does it smack of “fairness” that a retail auto glass company that competes for auto glass repairs and replacements in the United States is also given responsibility for performing audits of competing AGRR companies to determine if they are using a “fast cure kit”? It doesn’t seem that Safelite would be the appropriate entity to audit others if you applied the definitions of fairness:

“the state, condition, or quality of being fairor free from bias or 

injustice; evenhandedness”

“free from discrimination, dishonesty, etc; just; impartial”

“in a fair way; correctly: act fair, now!”

They certainly aren’t “free from bias” and it doesn’t seem as though they would have a strong desire to adhere to the idea of “evenhandedness”. I don’t see how they could be “impartial”. And it would seem impossible that the act of their being the auditor would be accomplished “in a fair way”.

To me it seems to defy logic when the corporate mission of any company must be to grow market share and produce increased value to its shareholders for it to be possible for them to be an independent auditor of others in the industry in which they compete.

Safelite’s company web site states:

We must do what’s right, even when no one’s watching

This means living by our values and being accountable. It is about how we treat our staff, our customers and members of our local community. We reinforce this throughout our corporate structure with legal compliances and ethics training, an employee ethics hotline and numerous channels for feedback and concerns.”

Certainly words any company would be proud to adhere. It seem appropriate to ask “who’s watching” those that are watching us? Do you think that there’s a 3rd party auditor that’s auditing the auditor?

I think you can ask the same question relating to the “pre-inspections of auto glass claims” that was discussed in a glassBYTEs article titled Safelite Solutions Accepts Recognition for Pre-Inspection of Auto Glass Claims” in May of last year. Does that practice seem to smack of “fairness” to you?

As most everyone on the planet knows, Super Bowl XLVIII is coming this Sunday, February 2, 2014 between the Denver Broncos and the Seattle Seahawks. The officiating crew this year is led by veteran referee Terry McAulay. What if for the game this year a crew of Denver Bronco fans is allowed to officiate the game instead of the impartial officials that have been selected by the NFL? If that was allowed to happen how many calls do you think would go Denver’s way? Even the most ardent Bronco fan hoping for a win for their team would see that as both blatantly “unfair” and “unjust” to the Seattle Seahawks team.

So as “A Matter of Fairness”, who thinks that how Safelite operates as an auditor and/or inspector is:

“the state, condition, or quality of being fairor free from bias or 

injustice; evenhandedness”

“free from discrimination, dishonesty, etc; just; impartial”

“in a fair way; correctly: act fair, now!”

Just sayin’.

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Just Sayin’ Blog – Doing the Right Thing Isn’t Always Easy

Whether you are an auto glass shop owner or an auto glass technician working in the auto glass repair and replacement (AGRR) industry, following the Auto Glass Replacement Safety Standard® isn’t easy, nor should it be. The AGRSS® Standard has rules and best practices which requires a higher level of diligence and reporting to be adhered to on the part of both the auto glass company and its technicians. Deciding as a company to fully embrace the standard and fulfill all of its requirements separates your company and your auto glass technicians from other companies which you compete. As a company you make the decision to follow the AGRSS® Standard then take the additional step and join the Auto Glass Safety Council™ as a registered company. Being a registered company requires that you participate in the non-profit organization’s Validation Program. Understand that if you’re a registered company, following the standard tells your customers that you are willing to open yourself to a 3rd party validation and inspection to ensure that you indeed follow the rules of the standard.

For the purposes of full disclosure, I sit on the board of directors of the Auto Glass Safety Council™. The Auto Glass Safety Council™ consists of countless industry members who donate their time and efforts to maintain the standard. They and/or the companies they work for pay for the time and travel required to spend working on behalf of the AGRSS® Standard. No one is paid for the work that they do.

By following the AGRSS® Standard you set yourself apart from others in the industry that’ve chosen not to do so; whether for reasons of profit, lack of knowledge or perhaps that you just don’t care about the safety issues involved. I’m not sure what would cause a company to not follow AGRSS®, but it has to be for one of those reasons. There are 8 deliverables that an auto glass company must adhere to comply with the standard. They are:

For Blog

Adhering to the AGRSS® Standard requires that you follow all 8 of the above deliverables. Does your company follow the standard and the deliverables? How do your customers know that you do?

A number of networks and/or third party administrators (TPA) require that auto glass shops that do replacements on the behalf of network customers replace glass according to the AGRSS® Standard. How is it possible for those networks to know that each replacement is actually performed to the standard? The only way for a network to confirm that every glass replacement is completed according to the standard is to require membership of every glass shop that does work on its behalf. No network or TPA, to my knowledge, requires 100% of the glass companies that do its replacements be members of the Auto Glass Safety Council™ to validate that its members are indeed completing replacements according to the AGRSS® Standard.

There are insurance companies that require auto glass shops that do replacements for their policyholders to complete them according to the AGRSS® standard. But what, if anything, do those companies do to enforce their own requirement? I’m not sure the answer to that question, but I’m not aware of anything more than an auto glass company being required to just say that they do installations according to the AGRSS® standard.

Do insurance companies ask you to install used glass on older cars or on cars involved in collisions? That claim has been made recently and that request is not allowable under the AGRSS® Standard. If asked would you install a used part in a consumer’s car when you can’t determine how it may have originally been installed?

Here are a few questions that are important to ask if you say you follow the standard, but don’t use a 1 to 4 hour fast cure Safe Drive Away-Time (SDAT) urethane:

·         If you’re an auto glass shop that uses a urethane that requires 24 hours or more to provide a SDAT do you actually inform your customer that they can’t drive their car for 24 hours?

·         Do you really think that if your customer is told that the car isn’t safe to drive for 24 hours that they actually will follow your instructions?

·         What do you think happens when you do the installation at their place of work knowing that they will be driving at the end of the day?

If the urethane you’re using requires a specific humidity and/or temperature level to cure properly, do your auto glass technicians have equipment with them that tells them that they are in compliance with the urethane they’re using?

What do you do if you encounter rust when doing an installation? Do you do the repair required to ensure that you comply with the standard? Do you go ahead with a replacement when there is rust damage that must be repaired according to the standard without actually doing all that needs to be done to ensure compliance? Would you walk away from a job if the customer won’t do what is required to fix a rust issue? It’s not easy to follow the AGRSS® standard.

To be sure, to do all that is required to be done by an auto glass company, auto glass technicians that perform the replacements and those who are tasked to keep proper records to execute all of the deliverables of the AGRSS® Standard isn’t easy as I said, but it is certainly achievable by companies and auto glass technicians that care. Fully knowing that a company or network or TPA that professes it follows the standard can certainly be called into question. The only way to know if some company is truly conforming to the standard is to be validated it by an independent 3rd party company.

The standard is a challenge. It is made to be. Validations can only be confirmed by an independent 3rd party organization approved to complete the inspection of an auto glass shop that says it adheres to the standard. To proclaim that you follow the AGRSS® Standard and not also back it up with an independent 3rd party verification would be similar to saying that the Affordable Care Act and HealthCare.gov has been a rousing success from its rollout on October 1st. The Affordable Care Act and HealthCare.gov may indeed ultimately provide what some profess that it will provide, but just saying so doesn’t mean that it has or will.

By the way, just because you are a registered company with the Auto Glass Safety Council™ and follow the AGRSS® Standard doesn’t mean that insurance companies or consumers will beat a path to your door. Not yet anyway. Doing the right thing when it comes to ensuring your customers safety should be enough.

There will certainly be those who read this blog who will disagree with me as to the “how” we ensure that consumers are protected when it comes time to having their glass replaced, but ensuring that consumers receive adequate protection when having auto glass replaced should be a concern to us all. That is of course if you care about consumers and the AGRR industry you wish to participate.

Just sayin’.

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Just Sayin’ Blog – Interview with Dave Taylor and Cindy Rowe-Taylor

Two of the most respected people in the auto glass repair and replacement (AGRR) industry are Dave Taylor and Cindy Rowe-Taylor who together built Cindy Rowe Auto Glass into the dominant AGRR company in much of Pennsylvania and Maryland. They retired to Florida a few years ago and spend much of their time cycling the world and enjoying their lives.

blogdavecindy

At Auto Glass Week™ 2013 that was held in Tampa, Florida last month Rich Campfield, president of the National Windshield Repair Association (NWRA), presented Dave Taylor with a new industry award named in his honor. As a founding member of the NWRA, Dave was a force in helping to mold the organization. Cindy was in the audience during the opening ceremony where Dave was presented with the inaugural award.

While at the Auto Glass Week™ Conference I had the chance to talk with both Dave and Cindy and they agreed to an interview. 

DR      First, thanks to you Cindy and Dave for taking the time to talk with me today. Special congratulations to you Dave for receiving the NWRA award that was named in your honor. I can’t think of anyone more deserving to be recognized for the work you have done to bring windshield repairs to consumers.

My first question is how do you both like retirement versus the daily challenge of being in the AGRR business?

DT      Retirement is terrific. As many folks know, we are avid bicyclists and living in The Villages in Florida is a bicyclists dream come true. We would have retired sooner if we had known had much fun and satisfaction retirement life had to offer.

CR-T  Retirement has been an easy transition and so enjoyable.  It is not sitting on the couch eating bon-bons, but having a very busy schedule and having such fun being busy.

DR      It sounds like you’re both making the most out of retirement. Cindy, what year was it and what was it that drew you to the AGRR industry that caused you to open the first Cindy Rowe Auto Glass store?

CR-T  I was a registered nurse for 13 years and decided I wanted to be my own boss.  That was when I became aware of the windshield repair (WSR) possibility in my area. In 1979 I started out with my repair kit in the trunk of my Vega, seeing dealers and fleets, where the volume was.  No sales experience ever.  I loved it from the start. I am the WSR pioneer in the Harrisburg, PA, and surrounding areas.  Dave joined me in 1986, working mobile WSR for one year; it was after that year that we bought our first glass shop.  We kept on both technicians and learned about replacement.

DR      Dave, what was it that you found attractive (besides Cindy) to the industry?          

DT      Self employment is the short answer.  After a 25 year career in department store retailing I wanted to be independent of the corporate world. Joining Cindy’s business was the logical next step. Being able to work together added icing to the cake.

DR      What was it Dave that made you such an early and strong supporter of repairs versus replacements?

DT      Cindy founded the business as a windshield repair-only business before we had even met. Eventually we expanded from repair to full service.  Unfortunately for the consumer, and perhaps fortunately for us, 25 years ago most glass companies were focused on replacement. They probably felt it was best for their glass company.  Solid business management practices made repair profitable for us and a well executed repair program gave us a significant and profitable competitive advantage. Providing customers with their best solution to an auto glass problem, be it repair or replacement, was our primary business strategy.

DR      This question is for both of you. What can you tell the readers of this blog made the biggest difference in the growth and sustainability of Cindy Rowe Auto Glass over the years?

CR-T  Staying ahead of the industry with their many changes, starting with the early 90’s and on.  Customer service was not to be compromised and keeping valued employees.  Early on, Dave and I decided that advertising heavily and educating the public would do well.

DT      Consistently providing the best quality service to customers and aggressive brand building through media and public relations.

DR      I know that in my own career finding the right mix of people made all the difference in my finding success that I’ve enjoyed. At Cindy Rowe how were you both able to always ensure that you surrounded yourself with the best people, that you got the best from them and what advice can you offer those in business today as to that importance?

DT      Choose wisely, treat kindly.

CR-T  Fairly early on, we decided to hire people “green” and train them, offer good benefits, keep them abreast of the industry and give some autonomy.

DR      At Cindy Rowe you provided consumers in the Pennsylvania and Maryland markets you served with AGRR services, but you also offered paint-less dent repair. Would you suggest paint-less dent repair (PDR) as an additional product line that for those in business looking for additional revenue streams? And if not paint-less dent repair are there other products you think work well in today’s AGRR business?

DT      PDR is a profitable but technically challenging service. While it worked for us, it has proved difficult for many AGR companies to integrate into their businesses. I like what I saw during Auto Glass Week’s joint event with the window film industry.  We would have given window film a thorough evaluation.

DR      Something that some may not have known about you Cindy is that you are a registered nurse and that you’ve donated your time and expertise to those in need while in business at Cindy Rowe Auto Glass and still to this day being retired in Florida. Were you a registered nurse when you first started Cindy Rowe Auto Glass?

CR-T  Yes, for 13 years.  In 2002 I took the “Refresher Course” for RN’s and have been volunteering since in an area where uninsured patients are treated.  It is gratifying to be able to give back in some capacity.

DR      What traits or experiences in your background Cindy gave you the ability to find such success in business?

CR-T  I would guess perseverance, honesty, not afraid of working extra (lots of that for years), organization and time management skills.

DR      Here is a question for you both. Using radio and/or television advertising was a way that you got your name out into the marketplace and helped establish and differentiate Cindy Rowe Auto Glass. It is expensive to advertise on radio and television. When you look back at the genesis of Cindy Rowe through the day you departed the business, what was it that caused you to make that decision to spend money on that form of advertising?

DT      When we expanded from being a car dealer driven windshield repair only business to full service auto glass, we were the new kids on an already crowded block. Capturing the customer through the traditional referral routes would have taken a decade or more. So we went directly to the customer with Radio/TV and created an awareness and demand for our brand. When TPA’s began to capture significant market share, our brand building paid off handsomely. We were the only AGR company anyone in our markets had ever heard of and they asked for us. We never anticipated TPA’s when we began our brand building but brand building saved our skin when TPA’s took over most of the insurance business.

           Radio/TV and now internet are the effective media tools to build your brand with the general public. To influence “choice” at TPAs we wanted to be top-of-the-mind before the customer calls the TPA. Branding is a prerequisite to being “chosen”.  While media is expensive, aggressive purchasing strategies can help control the costs.

DR      Here’s a non-industry question. You mentioned that you are avid cyclers. Can you tell me what countries you’ve cycled and as a follow-up what you’ve learned about yourselves in your cycling adventures?

CR-T Cycling helps keep one in good physical condition and it really is a focus issue while on the bike – lots of issues to watch out; cannot daydream.

DT      United States, Canada, Bermuda, Denmark, Germany, Austria, Italy, France, Luxembourg, Slovenia, Hungary, Lichtenstein, South Africa and Switzerland.

DR      One thing I’ve noticed is that you both smile quite a bit. Can you say you’re both happier now that you’ve left the industry? What is it you miss being in business?

DT      Happier? YES! What I miss about the business is the daily challenge to effectively manage the unending stream of issues. In retirement I can choose easier and less stressful challenges.

CR-T  I look at it as another chapter in life. I have always loved my work, but times change and I am now thoroughly enjoying retirement with Dave. One of the things I missed when we first left was seeing the people in the office. My people spoiled me and it did not go unnoticed by me!

DR      My thanks to you both for taking the time to answer my all of my questions.

For those of you who haven’t had the opportunity to meet Dave and Cindy I can tell you from personal experience with them that they are good people. Truly fine people; who have effected and changed the lives of those that have come into contact with them over the years. Whether that interaction was in the business they operated together, the AGRR industry they both left their mark on or in their active community service over the years, both Cindy and Dave have given their time to those who sought them out or they felt needed their help.

The industry has been made better by their being a part of it and I hope that they continue to be active in helping to improve it in the future.

Just sayin’.

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Just Sayin’ Blog – Interview with Paul Heinauer – Glasspro

paul-heinauer

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’.

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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 5th 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’.

P

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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’……

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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 – 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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