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A Bump in the Road?

D’Ieteren, the parent of auto glass repair and replacement (AGRR) behemoth Belron, offered some insight into the current state of affairs at Belron in a press release last Friday. Even the strong can have some problems. The title of the press release was, “Annual impairment testing and profitability improvement measures / Update on group’s FY 2014 outlook / Early views on 2015” You can download the release via this link. It provides some interesting insight.

When you read the details of the press release pay particular attention to the section titled ”IMPAIRMENT AND RESTRUCTURING CHARGES”. This section provides an in-depth discussion of the non-cash charges and actions that D’Ieteren is taking.

First of all the release states that “Since 2010, Belron has been facing adverse market conditions in the UK with the vehicle glass repair and replacement market down by circa 40% over the period (-12% in 2014) together with price deflation. This has led to an erosion in profitability during the period.”

A “EUR 89 million non-cash goodwill impairment charge is therefore required.” (Definition of impairment charge by

“Belron entered the Chinese market in 2009 and expanded its network to 39 branches through a number of acquisitions, all of the businesses having both a wholesale glass and a fitting activity.”

“Experience to date has shown that Belron’s high business standards were not compatible with the carrying out of a profitable wholesale business in the region. Given the relative size of this activity in many of the existing branches, the discontinuation of the wholesale business means that these are no longer viable in the long term and will be either closed or sold. Following the closure of 31 non-profitable locations, Belron’s footprint in China will be concentrated on 8 branches.”

“This change will result in EUR 7 million unusual costs as well as a non-cash goodwill impairment charge of EUR 9 million, all provided for at year-end.”

“In Italy, following a decline in the vehicle glass repair and replacement market of circa 8% in 2014 and the decision of one of the major insurance partners to cease its collaboration and to establish its own network for fulfilling glass claims during the year, Belron has decided to implement a number of efficiency improvement measures. This will encompass merging the back offices of Carglass Italy and Doctor Glass, its franchise operation, as well as reducing administrative work in several branches thanks to the roll out of the new remote advisor system. The resulting EUR 4 million unusual costs will be fully provided for at the end of this year and will generate savings that should partially compensate for the reduction in sales.”

“In the Netherlands, vehicle glass repair and replacement market has halved in the last 5 years following the roll out of a new road surfacing technology that resulted in the vehicle glass breakage rate reverting to the European average while it was previously significantly higher. Profit improvement measures are currently being implemented both centrally and in the field operations that will require EUR 4 million unusual costs to be fully provided for at the end of this year.”

“In addition to its classical fitting business, Carglass Germany runs a separate activity offering glass repair and replacement for heavy commercial vehicles, notably buses and coaches. The profitability of this business has deteriorated in recent years due to the contraction in this market segment and will be negative by EUR 3.5 million in 2014. The decision has been made to close this business for total unusual costs of EUR 9 million.“

The value of the goodwill allocated to Brazil (EUR 20 million) is still under review.”

In the press release section titled, “TRADING UPDATE FOR THE PERIOD ENDING 30 NOVEMBER 2014” you’ll read the following:

“At Belron, year-to-date sales were up 1.3% on 2013 at the end of November, consisting of a 0.4% organic increase and 2.1% growth from acquisitions, partially offset by a 0.8% negative currency translation effect and a 0.4% decline due to fewer trading days. Total repair and replacement jobs have increased by 1.7% to 10.3 million.”

“In Europe, despite share growth, sales were down 4.8%, consisting of an organic decline of 6.6% due to severe market declines following an exceptionally mild 2013-2014 winter weather in Northern Europe, and a 0.6% decline due to fewer trading days, partially offset by 1.8% growth from acquisitions and a 0.6% positive currency impact.”

“Outside of Europe, sales were up 8.3%, consisting of an organic growth of 8.4% predominantly due to the extreme winter weather in the eastern US at the beginning of the year, and 2.5% growth from acquisitions, partially offset by a 2.4% negative currency translation effect and a 0.2% decline due to fewer trading days.”

During the early to mid 1990’s I held senior management positions at Windshields America, Belron’s retail subsidiary in the United States. I was fortunate to have worked with the greatest group of people that I’d ever had the opportunity to have been associated; the company grew from 50+ stores to 274 stores with exceptional sales and bottom line performance. Great people make all the difference in any organization. (December 16, 2012 blog post “What’s Your Line-up?”) The growth in store count and profitability was made possible by the performance of Autoglass. The Managing Director of Autoglass rightly boasted at the time that his company was providing the fuel (British pound profits) to help drive the growth of Windshields America and other areas of the world of Belron. True. It wasn’t his choice, but it was his view that he could have used those profits to further the goals that he had for Autoglass in the United Kingdom. Possibly true. Perhaps today Safelite profits could be diverted to help Belron around the world? If that does happen Safelite would have less money to spend in the United States to further their goals. Also a possibility.

So this week when you have a few minutes to consider the “strengths, weaknesses, opportunities and threats” (SWOT analysis) that could affect your business in the upcoming year and decide on what actions you will take to ensure that 2015 achieves the success you desire, know that even the dominate player in the AGRR industry in the world is having their share of problems. Some of their problems are market driven, so not necessarily self-inflicted. But some of them are strategic and tactic driven, so those are self-inflicted. Regardless they are not going away so don’t rejoice, but there is hope.

Just sayin’.


EPSON scanner image

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Employees vs. Robots

I was reading an article that appeared in Tuesday’s USAToday with the headline – “Amazon puts 15,000 robots to work on Cyber Monday”. 15,000?!?! The Kiva Systems robots do tasks that historically have been done by some number of Amazons 88,400 employees. Robots picking products that are purchased online by consumers that then need to be shipped to them from Amazon fulfillment centers across the globe cost some number of people jobs. Using Kiva robots obviously provides great value to Amazon shareholders since they don’t require a human resource department to oversee payroll, other benefits such as medical and dental plans, vacation days, sick days, etc.. But this can’t be good for union and hourly workers.

Automation Robots vs People


Robots are obviously taking over or facilitating any number of manual jobs that historically have been done by employees. Amazon’s use of robots brings the product(s) ordered online and stored in shelf bins to a packer for shipping. Once the purchased item is delivered to the packer the robot returns the shelf bin back to where it belongs awaiting the next task. These robots have certainly saved Amazon the cost of workers who provided this service. The article says that Amazon spent $ 775 million for the Kiva robots and that, “The robots are part of a complex software and hardware system that simplifies picking and packing at warehouses that contain literally millions of items.” The article doesn’t mention that each robot, and the systems that supports them, cost an average of $ 51,667. estimates that the average Amazon employee salary cost is in a range of $ 50,098 – $ 122,195. After Amazon’s initial investment in the Kiva robots there would be ongoing costs for maintenance, repairs, replacements and of course those whose job it is to manage the 15,000 robots, but Amazon obviously did all the internal analysis and studies to see that the return on investment was well worth the $ 775 million.

The advent of using robots isn’t new, but with robots taking over responsibilities of human pickers at Amazon and the use of robots across countless industries and companies the potential loss of unskilled or low skill jobs could be devastating. Taking place at the same time is the strong push by some city and state governments to increase the minimum wage through legislation. Somehow there seems to be a potential disconnect. compiled a report titled “The Top 10 Reasons Businesses Demand Enterprise-Level Automation”. Reason #2 in this report is:

“Happy and Productive Employees

Automated tasks keep people—who can get bored or irritated by doing repetitive tasks—free from drudgery. It also liberates them to do more strategic and valuable activities for the company. Automation lies at the core of all of our modern conveniences. Machines are made to do repetitive, boring tasks—without complaining.”

You can see where the use of robots and/or automation that is rapidly taking over or helping employees in their jobs providing cost reductions and greater shareholder value for companies who utilize them, but I’m guessing that most employees would prefer being “bored or irritated” and not “free from drudgery” versus not having a job. Certainly there are countless jobs that won’t be taken over by robots, but is your job completely safe from being replaced by a robot so that you can be freed to do something else? I’m guessing the Amazon employees that were picking products for packing at one time thought so.

If you’re a business owner or in management with responsibility for delivering shareholder value you have to continually be looking for ways to cut costs and increase value just as Amazon has done. There are countless jobs that aren’t going to be replaced by robots, but are there robots that can help you improve the productivity of your employees making their jobs easier and provide greater shareholder value? As companies compete against each other for business at a local, regional, national or international basis; looking for the slightest advantage against industry competitors the answer has to be yes. What are you doing to take any advantage available and ensure that you continue to grow and prosper in your industry?

Just sayin’.






“The Top 10 Reasons Businesses Demand Enterprise-Level Automation”


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“Follow-up” Interview with Sika Corporation’s John King (who is retiring)

John King is retiring this year as the Vice President – Aftermarket at Sika Corporation. In his role at Sika John has been a key influencer in the auto glass repair and replacement (AGRR) industry both in North America and the world. I wanted to get John’s thoughts on the industry prior to his retirement and he agreed to talk.

JK head shot 3

Thank you for taking the time to talk again John. I know that you’re going through some changes in your life. You saw an auto glass installation for the first time in 1997 and a lot has changed since then to today. As you prepare to depart an active role in the AGRR industry can you tell us your view of the state of the industry as it relates to the safe installation of auto glass?

            John King:  For Auto Glass Retailers that continue to provide their Customers with Safe and Cost Effective Glass Replacement and Repairs, the future is bright, as there will always be a need for quality work.

Do you feel that there are more safe installations done today for consumers versus when you first entered the industry in 1997?

            John King:  Statistics like this are difficult to define, as it becomes more of an observation and opinion, than fact based.  However, Economics always drive business decisions, and unfortunately, for the Auto Glass Industry, the Economics of today are much more stressful, than in 1997.  For a number of reasons, the size of the Replacement Industry has shrunk over the past 7 years, resulting in a competitive climate that has far too many Glass Shop Companies and Independent One-Off Installers making Installation decisions based solely on the Revenue then need to survive.  When that happens, Safe Installations take a back seat, to getting the job done cheaply.  While “cheaply” does not necessarily mean incorrectly, it can mean that shortcuts in an installation may occur; “Slipping the Cowls, Short Urethane Beads, Incorrect Use of Priming Systems, No use of Priming Systems, and Not Holding the Vehicle until it is safe to Drive, are all symptoms of an unsafe installation”. 

            Unfortunately, I still believe that far too many Installers sacrifice a Complete Job, for a Quick Job.  Therefore, my answer is that today, that are still far too many unsafe installations being done. 

            On the bright side, those Shops and Installers that are doing a Complete Job, have vastly improved since 1997.  There is more adequate training available today, and for quality installers, who have kept up with training, and who are using the latest technologies of Urethane and Installation Equipment that better equip the Technician for making a Safer Installation, they are light years ahead of the best installs of 1997.

Do you think more needs to be done to ensure that replacements are being done correctly and are there any further steps you feel should be taken to ensure that auto glass is installed safely?

            John King:  No one likes or wants Government Intervention.  However, unless the Industry takes it upon themselves to collectively raise the “bar of performance” when it comes to proper installations, it will only take a high profile auto glass installation related death, to raise the awareness of the Public and those that Govern to actively do something about it.. The Television Program 20-20, that aired 12 years or so ago, raised awareness for a period of time, but unfortunately, that awareness petered out and the public is still at risk.  Quality Glass Shops who can “prove” to the Insurance Industry that they do perform Safe Installations, will be rewarded with business in that segment of the market.  Glass Shops who implement and use “Net Promoter Scores” and track their Customers’ Satisfaction and Continue to Train their Technicians will be doing what the Consumers need them to be doing.

            The Cash Market is another issue, and because it is structured differently and because there is “little to no quality barriers” for someone to enter the Auto Glass Industry, Consumers that utilize the Cash Market vs. the Insurance Market are subject to the unknown. 

Have you any advice or hopes for the industry?

            John King:  Again, there will always be a need for Quality Work in an Industry.  Just look at what 2014 has brought to the Automobile Manufacturers, with record numbers of Recalls. Consumers now have the lowest confidence ratings ever for Car Companies and those Manufacturers will only change that conception when Recalls are reduced.  Auto Glass Retailers, Glass Manufacturers, Installation Equipment Makers and Urethane Producers need to work together to ensure the Public gets quality installations.  There are many great people within the Auto Glass Industry and I believe that those committed to providing Safety will win their fair share.

Fill in the name of who is replacing you at Sika. I know that you’ve been transitioning him into your role as you are nearing retirement. Will there be any changes in direction for Sika?

            John King:  Mr. Marius Mavrodin replaced me, effective July 1, 2014, although I have still been consulted on important issues.  That followed 5-6 months of us working very closely together so that he understood the Industry and our Customer Needs as much as possible. Marius has been with Sika for a number of years, so he knows our capabilities and he is blessed with an Organization that works very hard to provide Quality Products, Services and Support to our Customers.  I know there is still room for improvement in what we do and Marius will lead this cause.

As an avid golfer I’m sure golf will play a major role in your retirement. Do you have any other plans you’d care to share?

            John King:  For the short term, my wife Marilyn and I will take a couple of months to catch our breath.  The last 45 years together have flown by and we have been blessed with 5 wonderful children, with the Grandchild count, now at 4.  They have been and will continue to be our major focus.  It is not so much that I want to retire, but rather, I don’t want to work 50 hours a week anymore.

            Fortunately, there are some opportunities for me that might take root.  While deciding that, Marilyn loves to play golf as much as I do, and that is a major blessing.  We will stay active in Church and Charitable Activities and perhaps do a little travel, but the one thing I will not miss are Planes, Trains and Automobiles, if you catch my drift.  I will miss the People, for they have made it all worthwhile, and to all whom I have encountered over the years, I am truly grateful.  And lastly but most importantly, I thank My Lord and Savior, Jesus Christ, for looking after My Family and I.  We would have been lost without Him.

Thank you very much for your thoughts and insights John. You have provided great leadership to the auto glass repair and replacement (AGRR) industry and I’ve certainly valued both our business and personal relationship. You will be missed by our industry. I’m sure everyone wishes you the best in your retirement and/or the new opportunities that await you.

I was honored at Auto Glass Week™ 2014 to present John with an inaugural AGRR industry award. The award begins a new tradition through which the industry honors an individual for the body of their contributions through the years. The award was once known as the Len Stolk Award (as you will remember Len was an individual focused on the advancement and education of all facets of the AGRR industry). John was an excellent choice to receive this inaugural award.

John and David resized

Photo courtesy of

Just sayin’.



Below is the original interview that was done with John King on September 9, 2011


Welcome John King, Vice President – Aftermarket at Sika Corporation. Sika celebrated its 100 year anniversary in 2010, a true testament to the quality of their products and dedication to their customers. Sika has developed product systems in the automotive, construction, and industrial markets with a continuing focus on safety and sustainability.  In the AGRR world, Sika produces adhesives for sealing and bonding windshields in the aftermarket auto glass industry that meet and/or exceed OEM (original equipment manufacturer) requirements.

What changes have you seen in the auto glass world since you first joined Sika and began working in this industry?

            John King:  My first exposure to an Auto Glass Installation, was in 1997, in Zurich Switzerland, where I saw the Technician wearing a shirt and tie, and a smock.  This was how this tech dressed every day.  To him, his job was his profession.  While I certainly do not think that USA Installers need a dress code, I do see that many glass shop companies want to “raise the bar” of customer perception, installer performance and the glass shops’ commitment to safety, within our industry.  I firmly believe that this country has many technicians who are committed to this cause, and take pride in their work.  Unfortunately, over time, I have seen far too many technicians that care little about quality work, and even less about safety.  We have an Industry with an extremely low “barrier of entry”, meaning that anyone can put a phone number on the side of their truck and advertise auto glass repair and/or replacement.  However, that does not mean that they know what they are doing, and both the Public and Insurance Industry, know little about how to discern the difference between those who care and those who do not.  As our country’s economic conditions have worsened, our industry has become a haven for persons looking to find some type of income.  While it does not mean that those techs necessarily perform improper installations and repairs, we have to ask ourselves, have these new industry participants been trained?  How are they kept abreast of the ever changing details of vehicle glass replacement?  How many of them even care to know anything about “doing it right”?

What changes would you like to see in the future?

            John King:  Some States have talked about “Licensing” of auto glass technicians.  While I do not want glass shops to have to spend any more money then necessary, we have to ask ourselves, “How can we raise the barrier-of-entry into this industry?”    Licensing may be one avenue of doing this, while at the same time, providing a means of “raising the bar of safety” within AGR.  In any industry where the safety of the public is at stake, there are usually steps that those industry participants must take to first, truly understand what their work is to accomplish, and then secondly, prove they are worthy of doing the work.  In essence, become Industry Certified.  In AGR, the goal should be to provide correct and safe auto glass installations, meaning the vehicle’s passengers should not be placed at risk after their vehicle is returned to them.  Today, responsible Glass Shop Companies take this task upon themselves.  They see to it that any new technician receives adequate training, and spends time observing experienced and qualified technicians, before turning the new techs loose, to do jobs on their own.  The question to all of us should be, “How does the Public and or the Insurance Industry know that adequate training has taken place?”  In today’s AGR market, Glass Shop Companies spend their CSR’s time or their Outside Sales Rep’s time trying to convince prospective customers that “their installations are safer than their competitors”.   Unfortunately, there are many Glass Replacement Companies that are either ignorant of a truly safe and quality installation, or they are outright lying.  Licensing, which would include testing and certification, may be one of the ways to accomplish industry wide compliance of correct installation standards.

How long have you worked at Sika, and what do you find most rewarding about your job?

            John King:  January 1997 is when my career at Sika began, and I must admit it took me a while to have an understanding of how this industry works.  However, without a doubt, the most rewarding part of the business is getting to know people.  There are always business issues, business problems to solve, and strategies to implement, but at the heartbeat of this industry, is its’ people.  For me, there is nothing I like to hear more, than an unsolicited positive comment about how our Sika people are perceived by customers.  Whether Distributors or End Users, if our salespeople, or our customer service department are liked and appreciated by customers, that means that more than half the battle is already won.  The bottom line, is that most people, want to do business with good people. Therefore, if we can hire honest people with good interpersonal skills, and then adequately train them, and provide our customers with quality products, in the end, our sales people will provide excellent service and support to those customers, which would be ultimately rewarded with an ongoing business relationship.

Sika recently created a great animated cartoon called, “No Shortcut to Safety.” It’s a wonderful tool for glass installers and consumer alike, and describes the process of safe windshield installation without using laymen’s terms that can sometimes feel unfamiliar to people who don’t speak AGRR garble.

John, why did Sika Corporation feel it was important to develop this animation video?

John King: The AGR Industry is a cross section of groups.  We have the makers of product, the distributors of products, and the users of products, and those who need those products and services, who are collectively the Consumers, or Fleet Customers, or Insurers.  Communicating to a wide array of groups, with a single message, is always a challenge.  Our message needed to be part technical, part educational, part logical and if possible, part entertaining.   Most groups can understand all 4 parts of the message, if the message is short, and studies indicate, even with very intelligent persons, that 4 minutes is tops, to maintain someone’s attention.  We investigated a number of ways to develop and communicate our No Shortcut to Safety message, and when we came across the animated concept, it made sense to use the video’s simplicity.  We also found from experts in video communication that presenting a new message with an entertaining format, also maximizes the listeners retention of the subject matter; hence a cartoon format. 

What were your goals and target audience for this important message, “No Shortcut to Safety?”

John King: The message was still the key objective, and a message of a Safe and Reliable auto glass installation needed to be created and delivered to the Shop Owner, the Technician, and their Customers.  .

How would you like to see this video utilized? In other words, what do you feel is the most effective way to reach out to drivers to educate them about safe windshield installations?

            John King: Ideally, it is a combination of utilization of the video.  First of all, we know safety is important to most consumers.  This video has been shown in glass shop waiting areas to hundreds and hundreds of vehicle owners, and feedback from them has been exactly what we desired.  They have told those glass shops that they understand what they are doing for them.  Nothing has been more rewarding than reaching the Public with this message of No Shortcut to Safety.  Currently, glass shop waiting rooms are still the most common place where the message is shown.  However, with smart phones and the internet, we would hope to experiment with some glass shops being able to forward this video, to their customer, once they have scheduled a job.  The video then acts as an explanation to that customer as to what they should expect, when the job gets done.  This approach could then create a real value added marketing piece for shops to make the whole glass replacement experience, an even better one for their customers.

Thank you for joining us John.

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Vehicle Miles Driven Improving?

You may have seen statistics recently relating to the increase in miles driven in July 2014 versus July 2013. Seemingly great news for any business in the retail automotive repair industry as miles driven is one of the key drivers that affect the industry and any increase is a positive indicator. As shown on the United States Department of Transportation Federal Highway Administration web site[1],

Travel on all roads and streets changed by 1.5% (4.0 billion vehicle miles) for July 2014 as compared with July 2013.”


Total Travel

Percentage Change
















o    Estimated Vehicle-Miles of Travel by Region – July 2014 – (in Billions)

o    Change in Traffic as compared to same month last year.

Great news it would seem. The governmental web site further shows that,

Cumulative Travel for 2014 changed by 0.6% (10.1 billion vehicle miles).

That sounds like continued improvement and more great news for the industry, but perhaps not…..

In the Thursday, September 18, 2014 edition of the USAToday™ a small graph was shown in the USA SNAPSHOTS® section on the front page with the header “USA’s driving stalled” (click link). According to Advisor Perspectives, the organization that provided the information shown on the graph, miles driven in the United States:


 “Adjusted for population growth, January to June miles driven this year are down 8.5% since 2007 peak”


Down 8.5%! That certainly isn’t great news for automotive retailers. You can read the article titled “Vehicle Miles Driven: A Structural Change in Our Driving Behavior“, that was written by Doug Short for Advisor Perspectives that was the source of the information on the declining number in its entirety by following this link (click here). The article takes an in-depth look at how miles driven are being affected by gasoline prices, changes in driving behavior, the effects of an aging population, unemployment trends and changes in the ways we interact with one another due to ever changing improvements in communication technologies.


Miles driven, along with weather and the economy are the three key drivers[2] for the automotive retail industry. How have these three key drivers been affecting your business? Based on Mr. Short’s perspective on miles driven, automotive retailers will have to rely on improvements in the economy and favorable weather to offset a real decrease in miles driven to help drive growth. You’re going to need to take greater advantage of your push and pull marketing strategy to attract customers.

If you have a desire to continue to grow your business (and who wouldn’t) into the future; it would seem advisable to work hard on ways to differentiate and separate yourself from your competitors. The decline in the miles driven has certainly had an effect on volumes to date and will unquestionably continue to influence the automotive retail industry going forward. With declining miles driven the opportunities for replacing or repairing damaged auto glass, for collision repairs, for tire replacements, oil changes, etc. will also obviously continue to decline. It’s critical for smaller retailers to find new ways to attract customers just as the large market leaders aggressively pursue those same customers with name brand awareness campaigns. Now is not the time for complacency.


Just sayin’.


complacent brands

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Help Wanted: Writer Wanted for Social Media Conversation Page on Auto Glass Repair & Replacement



An interesting email hit my inbox on Monday from a company representing Service AutoGlass, a part of Safelite Group, Inc. The email came from Fun Online Corporation which is headquartered in New York, New York. Mike Schoenback  (and his partner Ron Luks) sent the email and it started with,

“Hi David,

I came across your contact information through  Our company (Fun Online Corp) is working with Service AutoGlass®, a national provider of wholesale vehicle glass products and installation materials, to launch a social media conversation page in the fall of 2014.”

So the wholesale division of Safelite wants to interact with its customers via social networking sites such as Facebook, Twitter, Pinterest, YouTube, along with numerous other social media sites? The email went on to say,

“We are interested in connecting with a person with good writing skills who has technical experience with auto glass repair and replacement and a familiarity with the industry. We are looking to hire such a person on an ongoing (freelance) basis to respond to posts on the social media page and work with us to develop conversation starters. Experience as a blogger is a big plus. This is a paid position.”

I guess I tick a couple of the boxes they’re looking for. I’ve spent my career in the auto glass repair and replacement (AGRR) industry, I am on some social media sites so I’m familiar with how those work and I blog. Even though it looks like the opportunity is being “outsourced” to Fun Online, the fact that it is a paid position is also great to know. The email ended with,

“I’m writing to see if you may be interested or if you have a colleague who may be interested in this opportunity.  We’re happy to have a phone or email conversation if you’d like more information about this.

Thanks very much!

Mike Schoenbach

Ron Luks”

Their email didn’t mention Safelite, just Service AutoGlass. I replied to let them know that I really appreciated the email letting me know about the opportunity, but I didn’t think I would be an appropriate person for the role they were looking at for a variety of reasons and I guess they didn’t look at some of my blog posts. I replied to Mr. Schoenback explaining that I was pretty sure that Safelite wouldn’t want me to fill the role even if I was interested. That being said I was once a part of Safelite filling a number of positions in the mid to late 1980’s leaving as the regional vice president of New England in late 1989; so I do have some familiarity with the company. I just didn’t think I’d be a good person to help “develop conversation starters” for them at this point in time. I’m sure that I could come up with a few “conversation starters” though. Here are some possibilities:

“If an auto glass replacement somehow slips through the hands of Safelite and you’re lucky enough that the opportunity comes to your company would you consider giving us a call so that we could sell you the part?”

“Here at Service AutoGlass we’re your all-in-one source for products and service, even if Safelite is spending countless millions on television and radio ads and is your biggest competitor. Come on…..give us a call. Won’t you?”

“We know that Pilkington, PGW, Mygrant and other wholesale distributors aren’t in the retail AGRR space installing auto glass in competition with you, but that shouldn’t stop you from giving us a call should it?”

I’m sure that you can come up with a few of your own. I asked a friend in the industry for a social media conversation starter for them and he suggested,

“They say you get what you pay for…. What did you get from us?”

I wished Fun Online success in finding someone to fill the social media role for Safelite…  er’ I meant Service AutoGlass. I found out that they sent the same email to a few other people in the AGRR industry as well. Imagine my disappointment hearing that. Perhaps they contacted you to see if you were interested? If not and you’re interested in the freelance position you can contact Mike and Ron to find out more. The Fun Online web site states:

“At Fun Online Corp. we’re your eyes and ears during business hours, evenings, weekends and holidays. A round-the-clock business infrastructure is expensive and can be a logistical nightmare. We can create a social media team or expand your current team and save you money. You’ll have 100 percent full coverage.”

It seems like a great opportunity.

Just sayin’.



* Cartoon courtesy of

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Hobson’s Choice (a Free Choice or No Choice at All?)

I recently read the argument that attorneys for Safelite Group Inc. (Safelite) made relating to Connecticut’s Public Act-13-67(c) (2) in a article. They argued that,

“it puts appellants Safelite Group Inc. and Safelite Solutions to a Hobson’s choice….”

Hobson’s choice[1] refers to a businessman by the name of Thomas Hobson who ran a livery in Cambridge, England in the 1600’s. Hobson required that every rider asking to hire one of his horses to always take the horse nearest the door. If a patron didn’t want to use that particular horse no other horse could be used. A “take it or leave it” choice. As another source on the origins of the phrase states[2], “A Hobson’s choice is a free choice in which only one option is offered.” I thought using “Hobson’s choice” in this particular instance an interesting one considering the origins of the term. More on that later.

This link to the summary of the act that was first introduced in the Insurance and Real Estate Committee of the Connecticut House and ultimately signed by the Governor of the State of Connecticut required that in the handling of any insurance auto glass claim in the State of Connecticut that:

“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).”

Fairly straightforward.

A public radio program called “A Way with Words” talked about Hobson’s choice on one of the program segments. One of the hosts of the radio program, Martha Barnette tells us:

“The phrase Hobson’s choice goes all the way back to 17th-century England. For 50 years, Thomas Hobson ran a stable near Cambridge University. There he rented horses to students. Old Man Hobson was extremely protective of those animals. He rented them out according to a strict rotating system. The most recently ridden horses he kept at the rear of the stable. The more rested ones he kept up front. That meant that when students came to get a horse, Hobson gave them the first one in line—that is, the most rested. He’d let them rent that horse, or none at all.”

Perhaps you see where I was thinking that Hobson’s choice was an interesting phrase for the attorneys to use in their argument. First, Public Act-13-67(c) (2) is a duly enacted Connecticut law so their client really doesn’t get a choice in deciding whether they wish to follow it or not. As is their right, they can dispute the law which is obviously why the company is filing the appeals to the act which provides Connecticut consumers a choice in what company repairs or replaces their damaged auto glass. It’s just that at his stable Hobson didn’t want the same horse(s) being used each time by his patrons. Hobson wanted his patrons to use only the horse(s) that he wanted them to use. You can understand why Hobson wanted to rotate his horses so that each got equal use. Safelite wants Connecticut consumers to only use the auto glass repair and replacement (AGRR) company that Safelite wants them to use. In this case it would appear that Safelite is Hobson.

By enacting Public Act-13-67(c) (2), the State of Connecticut took steps it deemed appropriate to protect consumer choice for residents of the state. There are any number of AGRR companies operating in the State of Connecticut for consumers to use when they sustain auto glass damage. So is it “A Matter of Self-Interest or Consumer Choice”? Isn’t it Safelite that is attempting to provide Connecticut consumers with a Hobson’s choice?

Just sayin’.

Take it or leave it

Another example of a Hobson’s choice would be from Henry Ford’s book titled My Life and Work and written in 1922 referencing options available for the Model T Ford.

Any customer can have a car painted any colour that he wants so long as it is black.”


[1] meaning of Hobson’s choice

[2] description of Hobson’s choice

Other sources:’s_choice’s%20choice


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Just Sayin’ Blog – Rube Goldberg Machines and Business

I was recently sitting in an airport waiting for a flight and for 30 minutes I stood mesmerized watching an amazing sculpture designed by George Rhodes known as a ball machine. This wasn’t the first time I’ve seen one of these ball machine sculptures. The first one of Rhodes designs I saw was in the late 1980’s while walking through a terminal at Boston Logan Airport. I remember almost missing my flight watching and listening to the sculpture. This Rhodes sculpture at another airport attracted young and old alike. The sculpture really doesn’t serve any practical purpose, but is an intriguing piece of kinetic art. It’s hard to pull yourself away from watching all that is going on – a sculpture that often uses a combination of drums, cymbals, gongs and depending on your point of view makes either a virtual cacophony or euphony of sounds.

In a way these sculptures remind me of a Rube Goldberg machine. Wikipedia defines a Rube Goldberg machine as follows:

“A Rube Goldberg machine is a contraption, invention, device or apparatus that is deliberately over-engineered or overdone to perform a very simple task in a very complicated fashion, usually including a chain reaction. The expression is named after American cartoonist and inventor Rube Goldberg (1883–1970).”

An Example:

Rube Goldberg Guinness World Record by Purdue Society of Professional Engineers


Rube Goldberg and Business

While watching the steel balls that roll endlessly though the intricate Rhodes sculpture I started thinking about examples of how some businesses work effortlessly and continuously in a similar endless fashion. Businesses that provide the same exacting levels of customer service and delivery of a product (or products) over and over again that are a key to success. Some businesses have developed very simple processes to find success while other companies tend to overcomplicate processes in an attempt to achieve success.

While at the sculpture I was holding a Starbucks coffee and that company certainly comes to mind as a business that invariably delivers both simple and very complicated orders efficiently and effectively. This Seattle based company that got its start almost 40 years ago has today become the largest coffeehouse with over 23,000 locations in 64+ countries. I just order a Venti black coffee when standing in line at Starbucks. I can never tell if the barista is happy or somehow saddened by my straightforward order. A Huffington Post blog titled “The Most Obnoxious Starbucks Drink Orders“ details some of the complicated orders at Starbucks such as a ‘Venti Iced Skinny Hazelnut Macchiato, Sugar-Free Syrup, Extra Shot, Light Ice, No Whip’. Now that order would be a challenge to any barista fulfilling Starbucks “delicious, handcrafted beverages” mantra. It makes me smile when I hear someone standing in line ordering a similar concoction. It really doesn’t matter where in the United States or the world you place your order; Starbucks seems to always deliver the same level of consistent service regardless of the local. The company has obviously spent a great deal of time and effort in perfecting the delivery of consistent levels of service, but it all seems pretty simple to the casual observer ordering coffee. Everyone knows that you’re going to have to wait a bit when ordering one of the “delicious, handcrafted beverages” mentioned earlier versus my Venti black coffee order, but those who order the complicated drinks don’t mind. They know they are going to be rewarded with a delicious drink made to order by a barista that has perfected his or her craft. In plain sight the platform seems pretty simple. Do you think that behind the curtain there resides a Rube Goldberg machine? Doubtful.

Can you think of other businesses which deliver products consistently in a simple straightforward manner? Maybe FedEx, or even MacDonald’s could come to mind. Fortune Magazine lists 50 of the “World’s Most Admired Companies” and the top 5 are:

  1. Apple
  3. Google
  4. Berkshire Hathaway
  5. Starbucks

I’m sure you’d agree that each of these companies is the polar opposite of a Rube Goldberg.

I’ve worked in a business or two that have taken great steps to simplify business processes through employee training and the use of technology in an effort to reduce back office costs that keep company investments focusing on people and growing the platform. And I’ve worked in a business or two that seems compelled to use a Rube Goldberg machine mentality. I think that those who insist on making simple processes overly complicated could find greater success by streamlining operating procedures, but as long as shareholders are pleased with the return on investment, changes in operating styles aren’t likely to happen. In a highly competitive industry companies that are overcomplicated ultimately could be disadvantaged versus others in the same industry that have found ways to reduce the Rube Goldberg machine mentality.

Do you know of businesses in your industry which operate more like a Rube Goldberg machine (deliberately over-engineered or overdone to perform a very simple task)? I’m sure that you do. Noted management doyen Peter Drucker is quoted as saying:

“Only three things happen naturally in organizations: friction, confusion and underperformance. Everything else requires leadership.”

It has to be frustrating for people who work for companies that use complicated procedures or policies in an industry where other companies have found a simpler way of delivering the same service. I’m sure you can come up with some examples in your industry.

So, what’s it like at the company you’re working? Does your company operate more like an Apple,, Google, Berkshire Hathaway and Starbucks; or does it operate more like a Rube Goldberg? Imagine the potential for those companies that operate using a Rube Goldberg machine mentality that pivot to find a better way to provide the services or products they offer. If you look at your company and think you see an area of the business that might resemble a Rube Goldberg machine, perhaps you should seek ways to make it a little less complicated. Isn’t that what leadership is all about?

Just sayin’.

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Just Sayin’ Blog – Road Trip

A few weeks ago we decided to take a road trip. The trip has taken us through Indiana, Michigan, Canada, Vermont, New Hampshire, Maine, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Washington, D.C., Virginia, North Carolina and now onto South Carolina, Tennessee, Kentucky and then back to Illinois. We could add a couple of other states to the trip. It has been a great road trip. Besides keeping my eyes on the road I also kept an eye out looking for windshields in need of repair or replacement as I have since I entered the auto glass repair and replacement (AGRR) industry. I was also looking for mobile auto glass vehicles along the way.


In an article titled “April Miles Driven Increases” that appeared in last week, the web site reported that there was an overall 1.8% increase in miles driven in 2014 versus 2013. Only the Northeast reported fewer miles driven. Based on our experience, the number of vehicles of all types on the road has been pretty amazing. We’ve encountered very heavy traffic everywhere we’ve been so far and, since one of the three key drivers for the AGRR industry is miles driven (the weather and the economy the other two), perhaps this is another good sign for glass breakage and future business….at least in the states visited on this road trip.

I’ve spoken with a number of people who either own or work for AGRR retail and wholesale companies; regardless of the area in the country in which they compete, each says business has been great this year! In other road trips over the past few years there have always been a plethora of windshields in need of repair or replacement on the drive, along with countless plastic and tape wrapped broken door, quarter or back glasses (the “do nothings” – those who break glass and don’t repair or replace it). On this road trip I have been surprised to see very few broken windshields or taped up door, quarter or back glasses. Hopefully this is a sign that people are repairing or replacing glass when it breaks.

I saw the first AGRR mobile van on the road trip in Canada – a Speedy Glass van (I was the President and CEO of Belron Canada in the late 90’s and early 00’s). I didn’t see my next mobile van until I saw a Tiny & Sons Auto Glass mobile van in Massachusetts. I have driven by a number of glass shops on the road trip (and stopped by a few) and I didn’t see any mobile vans parked at the shops so I assumed (hoped) that each was busy doing mobile replacements. I’m in North Carolina now and I haven’t seen any more mobile vans. Odd I think as I see them in Chicago all the time.

After the strong winter season across much of the country we experienced some “Wind at our Backs” which was discussed in previous posts. Perhaps with a steady increase in year-on-year miles driven, and if the economy will come out of the doldrums we will see some positives for the AGRR industry. You still have to have to figure out how to deal with the big guys increasing market share and the brand recognition programs in play. If this year’s weather provided and continues to provide AGRR opportunities, if the miles driven continues to grow providing further opportunities and if the economy going forward gains strength and provides further opportunities; you’ve got something to work with. Not always easy I understand, but if it was easy you’d have a lot more competitors to deal with. You just need to continue to figure out what you can do to push and pull consumers to your business.

Just sayin’.

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Just Sayin’ Blog – Disruption Innovation in Business


Clayton Christensen developed his disruption innovation theory studying the computer industry. Disruption in virtually any industry will determine winners and losers in business. If you visit the Christensen Institute web site you’ll read that:

“The theory explains the phenomenon by which an innovation transforms an existing market or sector by introducing simplicity, convenience, accessibility, and affordability where complication and high cost are the status quo. Initially, a disruptive innovation is formed in a niche market that may appear unattractive or inconsequential to industry incumbents, but eventually the new product or idea completely redefines the industry.”[1]


Courtesy of

At the annual Code Conference held at the Terranea Resort, located in Rancho Palos Verdes, California that brings together some of the world’s geekiest folks; Google’s Sergey Brin debuted Google’s driver-less car (link). These cars were designed without a dashboard, steering wheel or a brake pedal. Why? A driverless car doesn’t need any of those accessories in the cars of the future as seen by the visionaries at Google. Could this be an example of “disruptive innovation” that could affect multiple industries?

This Google designed driver-less vehicle is very different from the self-driving vehicles that Google equipped with the driver-less technology installed on the Toyota or Lexus models that Google first began using. The initial self-driving cars Google used were off –the-lot models made by original equipment manufacturers so each came equipped with a dashboard with all of the typical accessories you’d expect to find both on and under the dash. But this new Google car comes without many of the accessories deemed required, up until now, and Google added a few other things that you will find disruptive long-term. It evidently is equipped with a flexible plastic windshield.

The car can only top out at 25 miles per hour and you’re not going to be seeing it on the highways anytime soon, but nonetheless with Google behind it one can only assume that the company’s long-term goal is to dramatically change driving habits. Will this technology be successful in disrupting the car industry? It would take time and a lot of treasure, both human and monetary. Google certainly has the wherewithal to attract the best and brightest to make this project a reality and money isn’t an issue.

Experts believe a self-driving car will make driving safer. Imagine that you can text or talk on your phone to your heart’s content as you won’t need to be concerned about distractions. Human driving errors should be greatly reduced if all the other cars around you are interconnected resulting in greater safety. Older drivers would have more freedom which would be good for them and great for everyone else concerned about grandma and granddad getting behind the wheel. Disabled drivers would also gain new freedom to rely on themselves versus others. An EY Automotive study says that autos with Autonomous Vehicle Technology will surge from 4% in 2025 to 75% by 2035.

There are going to be winners and losers as self-driving cars gain traction in the coming years. What will greater safety and independence for everyone mean to the insurance industry and all of those in claims departments today if the number of accidents drops? To the collision and automotive parts repair industry? To the rental car industry? To the auto glass repair and replacement (AGRR) industry? To the trucking industry? Countless industries will be affected. There’s going to be a lot of businesses that will rise and fall with this disruptive innovation and a lot of people at risk of losing their current job in an industry affected by the self-driving car.

There will probably be a day when those who want to drive their own cars could be viewed similarly as today’s drunk driver or someone that is texting as they are putting self-driving car riders at risk.

What will the likely outcome be if Google’s self-driving cars become a “disruptive innovation” and disrupt car manufacturers, the transportation industry as a whole and change the habits of the driving public in the years to come? We’ll have to wait to see.

So is there something a company or companies are doing today (or will be doing) in the AGRR industry that is (or will) disrupt the way things operate? Are there innovations that will “completely redefine(s) the AGRR industry”? I think the answer is yes to both questions. There are plenty attempting to disrupt what it is you are doing today and I know that there are those trying to disrupt the future of the industry with new innovations.

Here is another definition of disruption innovation:

“A disruptive innovation[2] is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market.”

You probably think we already have enough disrupters in the AGRR industry, but what is your plan going to be if you’re not one of the one’s who has designed or is designing a “disruption innovation” in the industry? Something is certainly coming.

Just sayin’.







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Just Sayin’ Blog – Becoming Somewhat Extraneous

Let’s face it, the National Auto Glass Specifications (NAGS) List Price™ used in the auto glass replacement (AGR) industry for decades that has a pricing (and parts numbering) mechanism seems to have become extraneous. has information that was detailed on a NAGS™ web site from 1998 that provides the following historical information on the company:

From N.A.G.S. Website of 1998:

National Auto Glass Specifications was founded in 1927 by Madison Tracey who made patterns to cut flat glass for automobiles. He assigned part numbers for these patterns to ‘catalog’ them for his inventory purposes. NAGS Part Numbers were soon adopted as the industry standard to identify glass.

  • The first NAGS glass pattern (#1) was for a 1926 Model K, Series 5, Touring and Roadster Chevrolet.
  • The oldest car for which NAGS has a pattern is a 1915 Touring and Roadster Ford; Pattern #49 is a 2-part (upper and lower) windshield pattern.
  • NAGS first “bent” glass Part Number was #XXX1 for the back glass on a 1940 Lincoln Zephyr
  • The first curved windshield for which there is a NAGS Part Number is #XX22, for a 1941-42 Chrysler.

In the 1940s, curved glass appeared and the pattern business declined. NAGS continued to assign Part Numbers to catalog curved and flat glass and published the ‘NAGS Catalog.’ NAGS also published a chart to ‘calculate’ the price of flat glass.

In the 1950s, manufacturers were in conflict over their published list prices. As a neutral party, NAGS was asked to assign list prices to NAGS part numbers, establishing the NAGS List Price. These list prices reflected the industry practice of discounting and were based on manufacturers’ truckload prices. NAGS started publishing the part numbers with prices, establishing the ‘NAGS Calculator’.

Through the 1980s, NAGS information was available exclusively in print form. There was little change in the industry business practices. In the late 1980s, change started happening quickly as advances in technology produced more curved, tinted and coated parts. Networks began operations and electronic commerce was introduced to the industry.

In 1991, NAGS joined the global information marketplace through its acquisition by Thomson International, a world-wide publishing and information services company, and began development of the GlassMate® Database. Today, this database is used in many ways in support of the Auto Replacement Glass industry; e.g., part identification, inventory management, purchasing, invoicing/billing, EDI, auditing, etc. The vehicle configurations in the database have been adopted as Code Source #474 by the X12 Accredited Standards Committee of the American National Standards Institute.


* In 1991 NAGS™ was sold to Mitchell International and Mitchell International was acquired in 2013 by KKR and Co. L.P., a large global private equity investment firm.

When I first entered the AGR industry in the 1970’s the NAGS™ list price was factored by the auto glass truckload discount listing produced by the then leading industry auto glass original equipment and replacement manufacturer. The NAGS™ formula for computing the suggested NAGS™ list price was easily understood by everyone in the industry. As a retailer you could calculate a new NAGS™ list price by using the truckload pricing list that manufacturers provided to retail customers. There was always a lag period between the time the manufacturer provided its current truckload price list and when NAGS™ then published a updated list price schedule making it available to the AGR industry. Life was certainly much simpler then.

With the rise of the “global economy” over the past several decades, the subsequent improvement in quality (certainly debatable) of auto glass manufactured from countries with lower cost from around the world, along with cost cutting achieved by domestic manufacturers; many auto glass parts have become a commodity at the wholesale level. With the mix of manufacturers the long-used NAGS™ formula to determine the list price of NAGS™ parts may have become somewhat outdated. The vaunted formula for determining the NAGS™ list must have greatly changed over the years. It was once a very open and transparent pricing mechanism.

I found an article on from December 1998 titled “NAGS™ Announces Benchmark Pricing for 1999”. It’s a great article that in detail describes the “Benchmark Pricing” model NAGS™ used when the company reevaluated the list price for auto glass parts (and at the same time made changes to NAGS™ labor hours). According to the article, the revaluation that NAGS™ made reduced the list price for windshields by 68% and tempered by 53%, with NAGS™ labor hours reduced by 20%. The reduction in NAGS™ list price was intended to eliminate the large discounts that retailers were offering to insurance, commercial and cash customers off previous NAGS™ list price schedules. Discounts at the time ran as high as 65+% off the NAGS™ list price schedule with the thought that the revaluation and new re-engineered NAGS™ list price schedule would become the actual price charged by retailers to the retail customer base. That was the idea anyway…. We all know how well that worked out for retailers.

When NAGS™ was sold in 1991 to Mitchell International there was a concern raised by many retailers at the time that the treasured independence of NAGS™ pricing, that was sought out by manufacturers’ in the 1950’s, would be at risk. A major customer of Mitchell International was the insurance industry.

It’s difficult enough to fully understand pricing offered from AGR manufacturers and suppliers to retailers. Pricing is rather fluid, meaning that you receive whatever pricing you can negotiate with manufacturers and/or suppliers and there is no consistency upon what pricing is being offered to retailers. So how does or can NAGS™ have a formula today to determine suggested NAGS™ list price for auto glass parts which can be consistently used across the industry?

In an “open letter” dated May 5, 2014 written to Mitchell International/NAGS and signed by Independent Glass Association President Matt Bailey, the company was asked,

“What are the specific sources that you have collected data from since independent glass retailers and the referenced suppliers have all confirmed wholesale price increases?”

I haven’t heard if Matt received a reply to his question.

The question was a reasonable one and was related to an industry wide 5% +/- price increase put in place by a number of AGR manufacturers/suppliers to retail customers instituted on April 1, 2014. It is difficult to understand how a 5% +/- price increase from AGR manufacturers/suppliers could result in a reported .7% increase in the NAGS™ list price for the top 100 NAGS™ parts as detailed in a™ article titled “NAGS Spring Calculator Released, Average Price Increase of Top 100 is 0.7 Percent” written by Jenna Reed. The article stated,

“The Spring 2014 National Auto Glass Specifications (NAGS) International Benchmark Calculator has been released and shows the average price change of top 100 most popular parts was a 0.7 percent increase since the last catalog. The total average price change of top 10 parts was an increase of 0.4 percent.

To view the top 100 parts, click here.

In a comparison from the Winter NAGS Calculator 2014 to the Spring NAGS Calculator 2014, the largest price increase by percentage was on the 2005 Honda Civic windshield (FW02184GGYN), which increased 4.5 percent. To view this analysis of largest price increases by parts among the top 100, click here.

In the same comparison from Winter to Spring, the largest price reduction was on 2012 Ford Escape windshield (DW01684GTYN), which is down 3.07 percent. To view an analysis of the biggest price reduction among the top 100 parts, click here.”

It seems odd doesn’t it that prices from suppliers would go up 5%+/- and the top parts would rise less than 1%.

There are countless retailers that use either a cost plus, flat or tiered pricing models to consumer and commercial/fleet customers adding a “mark-up” to their actual cost of the glass being replaced. Often those prices include both the labor and kit charge required to complete the installation. This provides those that use these models comfort that they have a consistent profit margin to operate under. Networks and TPA’s still use a discount to NAGS™ pricing model to most of their clients.

A group of industry leaders formed The Chicago Auto Glass Group over 10 years ago to address industry pricing. The group worked hard at developing a “white paper” on benchmark pricing and suggested that the AGR industry move to a pricing model they detailed as follows,

“This Guide is intended to serve solely as a recommendation for establishing benchmarks and is in no manner intended to set or determine actual prices for auto glass replacement or to reduce open competition in the local, regional, or national market place.”

You can click on this link to read the entire Chicago Auto Glass Group proposal. The Chicago Auto Glass Group wasn’t successful in pushing the benchmark pricing proposal, but many in the industry viewed the proposal as a positive step in making industry pricing fair to all stakeholders.

AGR industry stakeholders should, on occasion, evaluate the pricing model(s) that they use, discard old or outdated ones and replace them with ones that are relevant. What do you think?

Just Sayin’.



Reference materials:

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