Posts Tagged autoglass
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.”
“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.
Courtesy of http://www.TomFishburne.com
Posted by "Just Sayin'..." in aftermarket, AGRR, AGRSS, aumotive after-market, Auto Glass, Auto Glass Safety Council, Autoglass, Business, Collision Repair Industry, Innovation, Interviews, Leadership, OEM, Retail, Service, Sika Corporation, supplier, Tools, Uncategorized, USP, Windscreens on October 28, 2014
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.
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.
Photo courtesy of http://www.glassbytes.com
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.
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.
Associated Articles and Reference Material:
Zauderer’s Scope (page 589) https://www.law.upenn.edu/live/files/1566-keighley15upajconstl5392012pdf
Interment of Major General Jesse M. Allen
Memorial Day celebrates the men and women who gave their lives in service to the Armed Forces of the United States of America. The debt of gratitude that we owe each of those who have fallen and who have given the ultimate sacrifice is a debt that cannot be repaid. Since the start of the Revolutionary War in 1775 there have been over 1,354,664 Americans who have died in service to our country. Memorial Day gives us all the opportunity to honor those who have died while serving the country by remembrances.
In 2012 my uncle, Retired Air Force Major General Jesse M. Allen, died. He served in both the Army and Air Force. His military service began in 1942 when he enlisted after high school and was sent to Europe during World War II. He was buried at Arlington National Cemetery earlier this month and he had a rather storied combat career serving in World War II, the Korean War and in the Viet Nam War. During the Korean and Viet Nam Wars he flew over 237 combat missions. My uncle was known to say that “If you can dream it you can become it” as he entered the service as a private and rose to the rank of major general when he retired after 30 years of service.
This day of remembrance also gives us an opportunity to recognize and honor all who serve and have served the Armed Forces of the United States. We certainly owe a debt of gratitude to every American who chose to serve and Memorial Day is an appropriate time to do so. Although I did not serve, there have been a number of my family members who have honorably served over the years starting with Ethan Allen, the leader of the Green Mountain Boys in Vermont during the Revolutionary War. Both my father and brother served as combat pilots. I am very proud of their service.
I did not have the honor to serve, but if you have served in the Armed Forces or have family or friends who have served I’m sure that you are proud of your own service or the service that others have given to our country. Today is a great day to remember and give thanks for that service.
I have had the great honor to have worked with many people in my career who honorably served their country and I would like to thank them again for their service. The lessons that those who serve learn about loyalty, leadership, honor, integrity, and personal ethics and these are assets that they are able to build upon and utilize throughout their lives. One does not have to serve in the Armed Forces to have learned these important attributes, but those who have served have a great sense of what these values mean both on a personal and professional level.
We should all be thankful on Memorial Day for individuals who choose to serve their country by joining the military to help protect us so that we can live in a safe and secure country. I know that on this day I am very proud of my family members who have served and those that serve today. I want to thank them for their sacrifices in service to our great nation.
I hope that you take the time to give thanks for their service and sacrifice as well.
Today I’m talking with David Carnahan, the owner of Mainstreet Computers, Inc. Mainstreet opened for business in May 1982. Mainstreet is a leading provider of software solutions to the automotive glass repair and replacement (AGRR) industry. I’ve been fortunate to have utilized David’s software products to help manage AGRR businesses in the United States, as well as Canada. Over the years, I’ve found David as a businessman who has the highest of values, principles and ethics in operating Mainstreet. This April Mainstreet celebrates its 30th year in business.
DR: Congratulations David! That is quite an accomplishment in the longevity of any business and one you and your employees should be most proud. How did you find yourself providing software solutions to the AGRR industry?
David Carnahan: In those early days we sold to virtually any industry, but we concentrated on smaller businesses. This was before the days of “off the shelf software”. We wrote or modified our programs to suit each company we sold. After selling to several glass shops we became more familiar with their needs and saw an opportunity to become a complete solution to glass shops across the country. So beginning in the mid 1980’s we began focusing on glass and Glas-Avenue born.
DR: What do you feel are the keys to your success in being able to build, sustain and grow Mainstreet Computers over the past 30 years?
David Carnahan: Though there are many “keys to success”, I’d like to mention two …
1. A mentor to Steve Jobs (the founder of Apple Computer) is quoted as saying that a company that lasts must be willing and able to reinvent itself. I believe that is true and particularly true in the technology field. When we started serving the glass industry back in the 1980’s we concentrated as much on selling hardware as we did on selling software but by the early 1990’s customers were better served buying hardware locally, so we changed our whole model and focused strictly on software and software solutions. Then about seven years ago we extended that service into designing and developing websites which has proven to be a great “re-invention” as we have helped scores of glass (and other service industry) shops “re-invent” themselves and move from dying to thriving.
2. A lasting company must have a long term mentality. We have always hired people with the idea they would work here until they retire. The cost in time and customer frustration of hiring and training new people is much greater that most people realize. Most of our people have well in excess of 15 years with us. When your people don’t expect to be around in a few years it affects every facet of the company from new product development to customer support. It’s also makes the work environment more rewarding.
David Carnahan (left) with Programmer Dave Daniels (right) who recently celebrated his 25th year with Mainstreet.
DR: How would you describe your management style and who has been a great help to you in building your business?
David Carnahan: I am a Christian and my faith impacts the way I lead the company. I view Mainstreet as God’s company not my own, so I’m responsible to be a good steward of His company. My philosophy is to find good people, treat them right and provide an environment where they can shine and excel in their strength areas. I have a speech that I give prospective employees. I tell them that I don’t believe in micromanaging, so … “if you’re the type of employee that only performs well with someone constantly looking over your shoulder to make sure you do your job, you won’t fit in here.” Our people know their jobs and the mission of our company and they “just do it”. I believe the longevity of our staff speaks for itself.
DR: What lessons have you learned in growing your business that you think could be helpful to others seeking similar success?
David Carnahan: Don’t give up. Success is not an event, it’s a process. I believe slow steady growth is much more stable than explosive growth. Never stop trying to improve and never take anything for granted – customers, sales or employees.
DR: What are the services that Mainstreet Computers provides to its customers and how have those changed over the past 30 years?
David Carnahan: We provide fully integrated Point Of Sale and accounting software to retail glass businesses – from small “mom and pop” shops to large multi-store chains. We also offer website design and web hosting geared toward helping the glass shop market themselves and increase sales through the internet. The biggest change in our strategy came 25 years ago when we began focusing primarily on the glass industry. This strategic decision of ‘narrowing the focus to broaden the impact’ has enabled us to really gain an understanding of the needs of the glass industry.
DR: How do those differ from your competitors?
David Carnahan: Mainstreet is the first and only glass software provider to offer a fully integrated accounting system. We wrote it ourselves and it’s specifically designed to work with our Point Of Sale program. Since we wrote it we fully support every part of it, so we’re the only contact a glass shop has to make for help with their software. We are also the only glass software provider designing websites for the industry.
Beyond basic products, the other characteristic that sets Mainstreet apart is our level of support. We have more people with more years of experience supporting our products than any other company. We are relentless in our commitment to provide support that is unparalleled in the industry.
DR: You’re an innovator in the industry. What were the main reasons you felt that strategy would work as successfully as it has?
David Carnahan: The reason for our success is simple. Mainstreet’s software and services meet a real need by enabling glass shop owners to benefit from technology without being or becoming technology experts. We provide the technological expertise while they concentrate on running their glass business.
DR: I very much appreciate your taking the time to talk with me today. In closing, is there anything further you’d like to share with the readers of this blog?
David Carnahan: Thank you David for all you do for the glass industry. You have a depth of knowledge and experience in this industry that is very rare. I hope you continue to advocate for the independent glass shop owners.
Thank you David and thanks again for taking the time to talk. I know that you, your employees and company will continue to have great success in the years to come.