Posts Tagged Independent Glass Association

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.

Glasslinks.com 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 glasslinks.com 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 glassBYTEs.com™ 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 glassBYTEs.com 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:

   http://www.glasslinks.com/newsinfo/nagsbnch.htm

   http://www.usglassmag.com/AGRR/Backissues/2003/0305/future.htm

   http://www.glassbytes.com/newsNAGSWinter20130114.htm

   http://www.glassbytes.com/2014/05/nags-spring-calculator-released-average-price-increase-of-top-100-is-0-7-percent/

   http://www.glassbytes.com/2013/09/mitchell-international-owner-of-nags-purchased-by-kkr/

   http://www.glasslinks.com/newsinfo/nags_history.htm

   http://www.usglassmag.com/AGRR/Backissues/supplement/NAGSNOTES.htm

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

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

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

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

 

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

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

 

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

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

 

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

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

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

 

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

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

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

 

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

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

 

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

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

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

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

 

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

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

 

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

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

 

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

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

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

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

Just Sayin’

Equalizer Industries, Inc.

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Just Sayin’ Blog – Decisions

A couple of weeks ago my mother experienced shortness of breath along with chest pains. Two hours later she called her sister who lives close by and told my aunt she was thinking that she should go to the emergency room. They could’ve called 9-1-1, but instead together they made the decision to have my aunt drive my mother to the closest emergency room in a hospital about 30 miles away.

My aunt is 91 and my mother is 90……

They made it to the E.R. and after a few days in hospital my mother was released and is doing fine. I talked with them about whether they thought they really made the best decisions to drive down themselves based on the symptom’s my mom was experiencing, the fact that ambulance service was readily available and that it was snowing that day. I hesitated to mention their age to them.

They both are very independent women who have great genes. I’m very happy that they both are very independent and it’s great that they rely on each other, but they reluctantly agreed that they probably made a bad decision even though it turned out okay so it wasn’t that bad of a decision. I suggested that perhaps they should’ve called 9-1-1 and they said that next time they would. I’m not so sure they will though.

If you look up the definition of decision in the Merriam-Webster Dictionary you will find:

“a determination arrived at after consideration”.

We make countless decisions every day just like my mom and aunt did. There are good decisions and bad ones, and all are based on a myriad of bits and pieces of information that we take into consideration. Most decisions we make are uneventful, but some carry great consequence for those who can be affected by them. Consequential decisions are often forks in the road and generally require more information and greater evaluation of the right or wrong road to follow. Those consequential decisions will most likely be based on the values or principals you hold. They therefore provide a clear view of who you are and what is truly important in your personal and business life.

You can be decisive in your decision making or you can hesitate and be indecisive.  Indecision makes all decisions more difficult because when you’re uncertain, unsure of your decision, it will often lead to less-than-positive results. Even after giving great thought and consideration to a decision it can turn out badly, but with careful consideration and a look at all the information available, those difficult decisions you make tend ultimately to be the right ones.

If you’re an auto glass shop owner or manager you make decisions relating to whom you hire to work for your company. You decide what kind of on-going training you provide to your employees. You decide the quality of the auto glass you buy for them to install and you make a really big decision on the urethane adhesives that you buy for your auto glass technician (AGT) to use when they install windshields for your customers.

Does the urethane you buy cure in 1 to 4 hours and provide a safe drive away time for your customers and their passengers? Do you tell your customers when their vehicle is safe to drive? Is it really safe for them to drive? As the shop owner it’s your decision. You make a decision on whether your company will join the Auto Glass Safety Council and follow the Auto Glass Replacement Safety Standard – AGRSS® as a registered company or not. If you become an AGRSS Registered Company you open your doors to an independent 3rd party validation process proving that you adhere to AGRSS®. That decision is important to all consumers who expect that their auto glass replacement is installed safely. I strongly feel that supporting the Auto Glass Safety Council is an easy decision for anyone who provides auto glass replacements to consumers. What do you think?

Your AGTs are responsible for making decisions when they are installing auto glass too. An AGT could make the decision to take a short-cut during the installation, or he could go forward and complete an installation of a windshield where a rust issue exists which could cause an adhesion problem effecting the safe installation of the glass. Or he could contaminate the surface of the pinch-weld or glass, he could use an outdated urethane which could affect the adhesion of the glass installed, etc. Whether your company is a small one or the largest, you have AGTs making decisions that affect safety with each install. Are they making the right decisions for your customers?

When an insurance company makes decisions regarding which company it chooses to replace auto glass for policyholders, what information do you think it uses to make those decisions?  What information do you think is important for agents or brokers who are in a position to recommend auto glass service providers to policyholders? 

What are the key drivers for these decisions?  Quality should certainly be the key driver. Price is also certainly a factor as is the importance of an efficient claim handling process for the insurance company, agent and/or broker.  The service and convenience provided to the policyholder should also be a factor in the decision making of those who are in a position of influencing where a policyholder has their glass replaced. Neither the steering of a customer to a particular AGRR company that also happens to be answering the call for the insurance company nor the practice of handing a gratuity to the agent/broker should be a part of the decision-making process. Sadly it is. What do you think the key factors for those making these important decisions should include?

We all have had to make many consequential personal and/or business decisions over the years. When we make those consequential decisions they often affect not only you and your family, but they also often have an unintended effect on others too. They aren’t easy, but they say a lot about your character.

The last stanza of the poem “The Road Not Taken”, penned by the great America poet Robert Frost says:

I shall be telling this with a sigh

Somewhere ages and ages hence:

Two roads diverged in a wood, and I—

I took the one less traveled by,

And that has made all the difference.

Just sayin’…….

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Just Sayin’ Blog – Hopes for the New Year

I’m hoping that 2012 turns out to be a great year for those in the automotive glass repair and replacement (AGRR) industry or if great is too high a bar to set at the very least better than 2011. In my opinion there are few key things that need to happen (and perhaps more than a few) for 2012 to be a great year. I’ve listed some of my hopes for 2012. Perhaps some are on your list as well.

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

Weather – I’m hoping to see “good” weather this year. I think you know what the definition of “good” means. For the most part 2011 was a “good” weather year.

In many markets, the AGRR industry and all those affected by it rises or falls depending upon the severity of the winter season which means snow. A severe winter brings increased breakage while a mild winter has the opposite effect. Annual demand obviously can vary considerably based on those weather fluctuations. I have many friends that compete in the snow-belt and at this time of the year they are looking at weather reports day-in and day-out to see when and where that next big snow will be. That snow, of course, has to come in the right amount and at the right time of day for maximum effect and that would be during rush hour. It would be great to see snow come in every other week so that after that big snow there would be sunny weather that follows allowing all those new repairs and replacements to be completed.  If there is no snow, owners/managers are forced to make tough decisions they’d prefer not to make relating to cutting expenses, so please let it snow. Snow brings out plows and salt trucks. If the area you live in still uses gravel or coal or sand, even better. 

Then there is ice. Ice can be even better than snow for the AGRR industry. Then there are cold snaps that can cause star breaks to run out when drivers go out and clean frost off windshields on cold mornings with scrapers or   even better – hot water. And when drivers turn on the defrosters to get rid of frost and warm air hits cold windshields. 

Hail is nice too. Of course not too small that won’t break the glass, but not too big either.  Just the right size will do. Rain isn’t ever really that good for our industry, but if it does rain please let it rain at night.

The Economy – My hope for 2012 is that in the United States and everywhere else in the world the economy becomes robust.  Since 2007 -2008 the economy in the United States obviously has not been robust.  During economic downturns many who experience auto glass breakage – the “do nothings” – delay repairs and/or replacements.  Everyone in the industry hopes that as the economy improves those “do nothings” will replace that broken auto glass.

A fully-employed workforce in the United States would be great. My hope for a robust economy includes the wish that everyone has a great job and that its a great paying one. All those fully employed people should have a car too — actually several cars would be even better. It would be great if all those cars would be fully insured with a zero dollar comprehensive insurance deductible. And, since these are my hopes for 2012, I hope that all those cars are fully insured with an insurance company that doesn’t use Safelite® Solutions as its auto claims administrator (I’m guessing most of you’d agree with me on that one). I hope everyone is going on vacations this year and preferably driving to all the beautiful places there are to visit and see in our great country.

A bad economy requires those competing in the AGRR industry to take an introspective look at their businesses.  That introspective look should include “SWOT” – your strengths and weaknesses versus the opportunities and threats you face. How you deal with SWOT generally determines how successful you’ll be.

Miles Driven – Miles driven are key to auto glass breakage and my hope is that for 2012 gasoline prices remain “low” which will equate to more miles driven by putting more people in their cars and on the road providing more opportunities for drivers to break auto glass.

The total monthly vehicle miles driven have been growing since the federal government started tracking the data. In September 2011 the Department of Transportation’s Federal Highway Commission released an in-depth Traffic Trend Report. If you follow this link to a graph on miles driven, after hitting a moving 12-month high of 3.039 billion, yes billion miles driven in the rolling 12-months ending in November 2007 the graph shows a down-tick in estimated vehicle miles driven that occurred in 2008 – 2009.  Thankfully the miles driven appear to have somewhat stabilized for now.

But the cost of gasoline is a major influencer relating to total miles driven. On December 18, 2011, a Chicago Sun Times (Chicago Sun Times article) article titled “At gas pump, 2011 was the year of the big squeeze” reported on the annual cost of gasoline for the average American family in 2011. The opening line of the article stated, “It’s been 30 years since gasoline took such a big bite out of the family budget.” The article goes on to report, “the typical American household will have spent $ 4,155 filling up this year, a record.  That is 8.4 percent of what the median family takes in, the highest share since 1981.”  This wasn’t good news for AGRR retailers in 2011. 

On January 6, 2012, a Los Angeles Times (Los Angeles Times article) article titled “Gasoline prices start the year at a high – and rising” reported on how gasoline prices are starting out this year. The article states, “but this also may be the year of the gas-pocalypse, analysts warn. That’s because gasoline prices are the highest ever for the start of the year, and they’re on the rise, supercharged by expensive oil and changes in refinery operations.” That’s certainly not good news for AGRR retailers looking for 2012 to be a better year than 2011.

The AGRR industry really needs to see lower gasoline prices that will cause a spike in miles driven for its business outlook to improve in 2012. Based on predictions made by Edward Morse, head of commodities research at Citigroup Global Markets, Inc., on December 22, 2011, on Bloomberg Television’s “Surveillance Midday” that doesn’t seem likely. If you follow this link Mr. Morse talks about factors affecting the crude oil market and the outlook for oil and gasoline prices. You’ll see that he holds out little hope for “low” gas prices in 2012.  Mr. Morse sees the floor for gasoline prices to be $ 4 by the end of May 2012. That’s certainly not good news for AGRR retailers in 2012.

My hope for 2012 is that gasoline prices are low and miles driven are high. Based on the realities of the marketplace and comments from experts you’d better cross your fingers and say a prayer for that one.

  1.  I’m hoping that in 2012 some entity – some organization or company in the AGRR industry steps up and becomes a leader for the industry. By the way, I’m certainly not suggesting that the “market leader” can assume that role.  I don’t think that’s possible. I am hoping that leadership is shown by someone who really cares about the AGRR industry and the issues that it faces, offering positive ideas for all to improve the valuable services that the industry provides to consumers.
  1. I hope to see fewer imports of auto glass manufactured overseas coming to the United States/North America and the imports that do come to our shores at least be from those companies that are major suppliers of Original Equipment Manufactured auto glass to car manufacturers and not those who primarily make after-market parts.
  1. I hope that every windshield that needs replacing in 2012 is replaced using the Auto Glass Safety Council’s auto glass replacement standard known as the AGRSS® Standard.  The standard is accredited by the American National Standards Institute (ANSI) standards development organization.  The AGRSS® Standard (ANSI/AGRSS® 002-2002 Automotive Glass Replacement Standard) is North America’s only auto glass replacement standard and it addresses the proper procedures that must be used by auto glass technicians, along with other company employees who are also important to ensure the safe installation of auto glass.  No other company or organization maintains any standard remotely similar to AGRSS®.  I also hope that replacements are completed using a urethane that provides a 1 hour safe drive away time.  Your customers deserve nothing less.
  1. My final hope is that someone steps up and attempts to compete on a larger scale against the market leader. The industry really needs a strong competitor to Safelite®.  I really don’t care who that is, but come on already.  Somebody step up on the retail or third party administrator side and give them a go.

I hope everyone who competes in the AGRR industry the best of success and luck in 2012.

And finally I’m hoping for a great 2012 for myself.

Just sayin’……..

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Mike Paley – Retail auto glass entrepreneur

Mike Paley is someone I think you should get to know.  He experiences all of ups and downs of being an entrepreneur in the auto glass repair and replacement (AGRR) industry.  Mike is the owner and president of Freedom Glass, an independent auto glass repair and replacement business providing auto glass repair and replacement services to customers in the greater Richmond, Virginia area markets.  He started his AGRR business in 2004 after working as Service Manager at a car dealership in the Midlothian, Virginia area.  Mike served as a Gunnery Sergeant in the United States Marine Corps, where one of his assignments was the business of recruiting.  His patriotism remains steadfast, as is evident by his aptly named business, Freedom Glass and its red, white and blue colors.    

Last year at the 2010 Auto Glass Replacement Safety Standard® Council (AGRSS®) Conference, held in Oakbrook Terrace (Chicago), Illinois, Mike was honored for having the first auto glass company to successfully complete the AGRSS® independent third party validation process with a 100% score on November 11, 2009.  I know that it takes a lot of work to make sure that your organization follows AGRSS® and being the first company to be validated and pass the validation with a score of 100% was an amazing feat.

Additionally, at the September board meeting of the AGRSS® Council Mike was elected to the Board of Directors of AGRSS®.

On a personal side, Mike is the proud father of three sons; Jason, Justin and Austin, all of whom reside in the Richmond area. 

First let me thank you for your military service Mike.  I’d then like to congratulate you for being the first AGRR company to be validated by the auto glass safety organization.  Sadly, that is one experience (or risk) that many in our industry are unwilling to allow their companies to have. 

With an estimated 45 – 50% of the auto glass that’s repaired or replaced in the United States being installed by independent single owner businesses, Freedom Glass is a great example of the vast number of auto glass repair and replacement companies in the AGRR industry today.  I think many in the industry would like to hear from someone such as you Mike, a strong competitor providing the highest level of quality workmanship to the customers in your marketplace.  What attracted you to the AGRR industry?


Mike Paley:  “Attracted” is an interesting term.  I think it was more fate than attraction!  While transitioning from my job as a Service Manager, a chip in my windshield spread into a crack that required replacement.  During the replacement process, the technician asked how long it had been chipped.  When I told him three years he asked why I never called to have it repaired.  I confessed that I had never heard of repairing a chip.  (As a dealership Service Manager, no one had ever approached me about repairing chipped windshields for our service clients bringing their vehicles in… hint to those in marketing).  So I began looking at every parked car’s windshield and was surprised to see how many were chipped.  From there I started researching the “repair” industry and I felt it was  a job I could perform without employees for the time being.  And I’ve always been confident  that I could “sell” anything that I believed in.  So Freedom Glass was created with only the repair industry in mind.   

In May of ’05 I started to contemplate adding replacements to our services.  But since I didn’t know anything about replacing auto glass I needed to research that, just as I had done earlier for repairs.  During my research, I learned just how critical windshields were to safety in the event of a crash or collision.  Shortcuts or errors could be catastrophic, so I wanted to make certain I was replacing windshields correctly.  I contacted a glass company in Jacksonville, Florida, and asked if I might come down to shadow a couple of their technicians for a week.  They graciously agreed, and in July I went down.  I learned a tremendous amount in a very short time from those two technicians.  In September I traveled to Charleston, South Carolina to attend the NGA’s Auto Glass Technical Institute (AGTI) course.  Exactly one year after opening our doors, we began doing replacements in addition to repairs. 

 

Without a background in the AGRR industry, what prompted you to want to enter this industry as a business owner rather than an employee?

Mike Paley:  Two words come to mind as for why I wanted to own rather than work for the business; leadership and responsibility.  The Marine Corps instilled in me leadership by example.  I have never asked, nor expected, an employee to do anything I would not be willing to do.  Case in point, I required of myself to get trained and certified before I ever brought on a technician.  That enabled me to learn what was expected and required to perform the job.  As the owner, I am responsible for the technicians and their ability when I place them in the field.  To this day, we have never installed a windshield whereas an NGA certified technician was not at that job.  Some owners may not deem that necessary, but it is for me!  Someone is trusting Freedom Glass with their most precious cargo, and I take that responsibility very seriously.  Another responsibility the owner has is the material his technicians have to work with.  I often say the greatest technician in the world can’t be great if his company’s owner refuses to provide him with the best material.  But likewise, if an owner provides the absolute best material available and the technician is untrained or doesn’t care, the installation can still be compromised.  It takes both.  

      

Independents have to stay competitive by finding ways to differentiate themselves from not only the larger companies they compete against in their local markets, but also other independents such as themselves.  What advice can you offer independents such as yourself to stay competitive against the larger chains?

Mike Paley:  There are several things that we emphasize.  We encourage our clients to call me if there is ever a question, concern or issue about a job after our technician has left.  Plus, I let people know that when you’re dealing with a company our size you’re no more than two phone calls away from talking with our President; try calling a “big” company to talk with their President.  I would strongly encourage smaller independent shops to focus on quality, not quantity.  I would rather have a technician do five jobs a day correctly, then eight incorrectly.  I also express to clients and contacts that because we don’t have a TPA feeding us business we must rely on referrals and word-of-mouth.  So we “ask for referrals”!  If you don’t ask, you probably won’t receive.    

 

By your being the first auto glass company to pass the AGRSS® independent third party validation, what advice do you offer those in the industry who are considering joining the association?  Why did you join and why should other AGRR companies join AGRSS®?

Mike Paley:  There are a multitude of associations and organizations that an AGRR company can join, and they all have their place.  But for me, our participation in AGRSS® is my priority because its focus is on the safe installation of windshields.  And without that, nothing else matters!  To me that is.  And so, if an auto glass company is genuinely concerned about the safety of its clients, they owe it to themselves, their staff and their clients to be a part of AGRSS®.

 

Why did we join AGRSS®? Let me first say that it took some time for us to join AGRSS® and the reason was purely fiscal.  I had read the Standard and recognized that we were following it, but for anyone to be able to simply write a check (and sign an affidavit) stating they were doing installations correctly without any way to substantiate it didn’t sit well with me.  Perhaps I was being too cynical, but I expressed this concern to someone at AGRSS®, and was advised that a validation process was in the works.  So I politely asked to be contacted once that validation came to fruition.  Several months later I was contacted and advised the validation process would be rolled out soon, so we jumped at the opportunity to demonstrate that we were indeed performing our replacements correctly and in accordance with the AGRSS® Standard.  Unfortunately, the roll out didn’t take place as soon as we had expected.  But ultimately validations did start and we are thrilled to have been the first auto glass company in the Nation to pass the third-party validation with 100% compliance.   

 

Why should other AGRR companies join AGRSS®?  David, I didn’t realize my “sometimes” lack of being politically correct would be tested this early!  While I do believe that every AGRR company “should” be registered with AGRSS®, I know that not all companies can be!  As someone who is still very close to the front line of windshield replacements, I will tell you that far more windshields are being replaced improperly than should be the case.  And I’m confident that our area is not the exception, but rather the rule.  So let me answer your question this way.  I feel as though any auto glass company that “claims” to be performing safe and proper windshield replacements should be, and should want to be, a registered company with AGRSS®!!!  I don’t know why those companies wouldn’t be excited about being registered with and connected to AGRSS®.  After all, AGRSS® is trying to educate and promote that there is a difference between a safe and an unsafe windshield replacement.  And they’re promoting those shops that care enough about wanting to keep their clients safe.  So I guess I’ll answer your question with a question.  Why would any auto glass company performing replacements properly and safely NOT want to be a part of AGRSS®?  Personally, I can’t think of one reason! 

  

What can you share about the experience of what it was like for you and your people to go through the AGRSS® validation process that other registered companies will be going through in the next few years?

Mike Paley:  When I learned of our scheduled validation, I did get nervous.  But my nervousness stemmed from the validation process being new and perhaps there being some bugs in the system that may not have been worked out yet.  I felt we had a lot riding on the results of our evaluation.  So our company went over the Standard again, worked with our adhesive manufacturer representative and prepared for what I feared would be an interrogation.  Turned out it was anything but an interrogation.  The validator, who is not a glass-industry person but rather statistician or assessor, went down a list of questions that everyone familiar with the Standard will already know, and merely asked questions.  The questions weren’t tricky or deceptive.  It was almost as if our validator were simply curious as to what we were doing and why.  I likened it to a curious client watching and questioning a technician during an installation.  The one piece of advice I would offer everyone, regardless of your company’s size, is to have a trainer, manager, or owner present during the actual validation for each technician.  We found this to be invaluable to clear up any misunderstandings about nomenclature, verbiage or procedures.         

 

Regardless of the size of your company, whether you’re the biggest or the smallest, why doesn’t (or shouldn’t) everyone who installs auto glass strongly embrace AGRSS®?

Mike Paley:  I think every auto glass company should embrace AGRSS®, and its intent!  A major part of my presentation when a potential client calls in for a quote is to educate them on windshield safety.  Yes, I want Freedom Glass to perform their replacement, but most important to me is that they know what to look for and ask about.  For those AGRSS® registered companies in my area, if you didn’t already know it (but I suspect you do), I am constantly promoting you.  While I’d love to install every windshield needed in my area, I recognize that we simply can’t do it; we’re just not large enough.  So if someone elects not to use Freedom Glass, I strongly encourage them to contact a competitor who is also registered with AGRSS®.  Some may question my reasoning for that, but I do not.  As I tell everyone that will listen, my family and friends will be safe with their windshield replacements because they will have us do the installation.  However, I can’t protect those I care about from someone else’s windshield coming out during an accident and striking them.  So I feel as though it behooves me to insure that everyone has a safe windshield installation.  And with that, I believe it is in every AGRR owner’s best interest to promote education, not lowest price.  I don’t ever want to read another story about a fatality resulting from a windshield failure.  As much as I hate to actually say this, I believe there are two types of auto glass companies out here today; those who genuinely care about safety and those who will do anything for the almighty dollar.  At Freedom Glass we have, and will continue to, turn down any job that will not result in a safe installation.  Making a living is important to us, but not at the expense of someone else not living!       

 

What do you see as key opportunities for you (and for others like you) in the AGRR industry and what do  you feel differentiates you in the marketplace.

Mike Paley:  David, I sincerely believe AGRSS® brings us the single greatest opportunity to demonstrate to the driving public that those of us registered with and adhering to the AGRSS® are indeed putting safety first.  As the saying goes, a lot of glass companies talk the talk, but only a few of us walk the walk.  And again, the way we try to differentiate ourselves from our competitors is by educating.  I do not want a client because I’m the cheapest out there.  I want that client because they care about those persons in their vehicle, and they’ll heed our warnings, i.e. Safe Drive-Away Time.  I feel if every AGRSS® registered shop would spend more time educating and less time concentrating on price, some of the 800-lbs gorilla’s business would come our way and some of the fly-by-night installers would either leave the industry or get trained and certified.          

 

From your prospective, what do you see that is right with the industry and what do you see is wrong with it?

Mike Paley:  There are several things that I see as right in our industry, and that gives me reason to hope more positive things are forthcoming.  I sincerely believe that the formation of AGRSS®, and its validation program, is the absolute best thing that could have occurred for our industry.  I also know from attending the conferences over the years and talking with other glass companies around the nation, there are others that truly care about consumer safety and place that in the highest regard.  And while independents, especially small independents, can’t compete head-to-head with that 800-lbs gorilla in our industry, if we can work together to educate and demonstrate our collective professionalism, I believe that we can gain some of that gorilla’s market share.

As for what I see wrong in our industry, there are several things there as well!  Of course the biggest is that gorilla.  Anytime a company can have an affiliation with the majority of the insurance companies out here; answering their glass claim calls, dispatching their own installers, using the glass they manufacture, and getting paid a Guaranteed Average Invoice (GAI) price; that’s about as “wrong” as it can get for the rest of us.  And there are several “wrongs” I feel are being self-inflicted by many in our industry, including some by independents.    Freedom Glass does not, has not and will not waive any portion of a client’s deductible.  If a client wants a zero deductible, I encourage them to talk with their agent.  After all, if anyone reading this does waive even a portion of that deductible and our industry’s compensation keeps getting smaller and smaller, I would implore you to write a letter to AGRR Magazine as to how you’re doing that and staying profitable.  But the truth is, I already know!  And my company will never do anything to compromise anyone’s safety.  The other issue I see are the numerous installers who, after working for someone else, have decided to open their own auto glass company.  The problem is that while they may have the best of intentions and may even be very good technicians, their inability to quote and market properly is driving the value of our industry into the ground.  Often times these “new” independents will survive for a month or two based on family, friends and connections, then they begin calling other glass companies to inquire about performing subcontracting work for them.  Then, within six months their company is no longer in business.  And finally, we have those companies in our industry, large and small, that do not see the value and importance of training and educating their personnel.  To me, that’s a frightening shame.          

 

What industry associations or organizations do you belong and why did you join them?

Mike Paley:  We have been members of the Auto Glass Replacement Safety Standard (AGRSS®); Independent Glass Association (IGA®); National Glass Association (NGA®); and, National Windshield Repair Association (NWRA®).  We currently belong to only AGRSS®.  The reason we joined each of these associations was to learn more about our industry as a whole, each association independently including its goals and objectives, and to become certified by each.  I don’t believe we can ever learn too much.     

 

You may be uncomfortable answering this question, but what advice can you offer others in the industry that you feel could possibly help them improve their businesses?  Can you pass along any ideas on how they can grow sales in their markets in the difficult environment that the industry is facing?

Mike Paley:  I believe I’ve already addressed a couple of ideas, but let me offer this.  In my humble opinion, I believe owning an auto glass company is a marathon, NOT A SPRINT!!!  Go to work each day with the goal of educating everyone and making at least one friend.  Share something about auto glass safety with everyone you come in contact with.  Do those things and the sales will take care of themselves.  People ultimately do business with people they like and trust.  Sure, the cheapest guy may get the job today, but he probably won’t be around tomorrow when that client needs their service again.  So stay true to yourself, your clients and your industry.  It may be tempting to lower your prices or your standards, but once you’ve compromised them, they’re gone!             

 

And finally, one thing I have to ask you about is how your Carolina shag dancing is coming along with the Richmond Shag Club and how do you rate your dancing prowess versus your skills in the auto glass repair and replacement industry?

Mike Paley:  Talk about being blind-sided, LOL!  Having never danced until I reached the half-century mark, and always thinking I had two left feet, I’ve grown very confident in my dancing.  Five years ago you couldn’t have dragged me onto an empty dance floor; today you can’t keep me off one.  My skills in the auto glass industry have also grown tremendously, and with that, so has my confidence.  Without that confidence I would never have even considered accepting the honor of being nominated, much less elected, to the Board of Directors for AGRSS®.  Ten years ago I wouldn’t have dreamt of owning an auto glass company, but today I’m proud of where we stand and the reputation we’re building daily.  And that’s my hope for the future of our industry as a whole, to grow in skills and knowledge, abilities and confidence.  Can we learn more?  Absolutely!  Can we get better?  Without question!  Are we passionate?  We better be; people’s lives depend on us!!!   

 

I want to thank you for taking the time to answer my questions Mike.  I very much appreciate your candor and willingness to share your views on the industry.  We both have a great desire to see everyone who runs and operates a glass company in the AGRR industry find ways to remain viable during the difficult competitive landscape that exists, especially today.  With all of the changes that have taken and are taking place in the industry you need to find ways to compete in the marketplace and not only maintain the customers you have, but grow your business by differentiating yourself in the marketplace.  I hope that many in the industry can see through your experiences and advice in opening Freedom Glass that there are ways to be successful in the industry, regardless of the size of your company.

Thanks again Mike and I wish you great luck in the prosperity and growth of Freedom Glass.  I’m glad I’m not currently competing against you in Richmond.

Just sayin’………….

 

p.s.  The Auto Glass Replacement Safety Standard (AGRSS®) changes its name to the Auto Glass Safety Council® effective January 2012.

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ZIP Code based pricing

About a month ago on November 14, 2011, Nydia Han (link), a television news reporter for the local ABC Channel 6 Television affiliate WPVI in Philadelphia, reported on that station’s nightly news program about the auto glass replacement pricing by zip code strategy that, according to the station, Safelite® Auto Glass was utilizing in the local market.  It was certainly interesting and entertaining to watch the 4+ minute “Action News Investigation” segment that Ms. Han presented on the television stations ABC News Channel 6 “Special Report” (link).  During the segment she asked this question:

“Is it fair for a company to charge you more for its services based on where you live?” 

ABC Channel 6 visited a Safelite® store location in Cherry Hill, New Jersey, asking about replacing a windshield and reported that they were told – “So book it online” – by the store.  She did just that by getting on a computer and going to the Safelite® “Get a quote” web page. It was there that she found that she first had to put in a zip code as required by Safelite® in addition to other required fields detailing the make, model and year of the car; along with the piece of glass she wanted quoted.  Based on her report she then started to put in a number of different zip codes in the area serviced by Safelite®.  Ms. Han reported that what she found was that “for the SAME windshield replacement on the SAME car at the SAME Safelite® shop” she got a number of different prices, depending upon the zip code used for the quote.  She reported that the prices varied about $ 80 for the same windshield replacement on the same car and the question she asked was does that pricing strategy model seem fair to consumers?

Based on the television stations investigation and report, the director of Philadelphia’s Consumer Affairs Lance Haver believes that it is not.  As Mr. Haver said in the report:

“It’s just wrong.  There is no two ways about it.  This is just wrong.  It should be one price for everyone; it shouldn’t depend upon where you live and how much they can gouge out of you.”

So why did Safelite® use zip code pricing?  Their spokesperson Melina Metzger was quoted in a glassBYTEs® article¹ as offering the following in response to WPVI’s investigative report saying:

“Pricing strategies are confidential.  This is a case of an investigative journalist attempting to create scandal where there is none.

Like all businesses, Safelite uses a dynamic consumer pricing model that fluctuates based on many variables, such as what other competitors the customer might choose to repair or replace your vehicle glass, the availability of a technician in [an] area, and the availability of the right part in [an] area. At Safelite, we believe our consumer pricing model to be fair and offer value.”

Okay, Safelite® certainly has the right to use any pricing model it would like to achieve its goals as does any other company.  It is an interesting model when someone on one side of a street who has the same car as someone on the other side of the street can be charged different amounts for the same item quoted and installed by the same store.  But in Safelite’s® defense, doesn’t every company have the right to price its products and services anyway it wants?  Even if the same store location actually does the work and/or those two different people in two different zip codes who might live across the street are sent the same installer to do the work on the same year, make and model of car?

I looked at a number of other auto glass repair and replacement retailers operating in a variety of markets as Safelite® and each of the retailer web sites I visited asked for a variety of customer information along with details of the car and what glass was needed to be replaced.  The web sites I looked at asked for zip codes only to determine what store was closest to the customer.  None offered quotes online.  Each of those web sites also said that a customer service representative would be in touch via email or the telephone to follow up on the quote request from the customer.

Then I visited a number of other web based auto glass replacement quoting sites.  Each of the web sites I visited requested zip code information (In all fairness to them it appeared that none of the ones I looked at actually operated auto glass shops themselves and were aggregators selling customer replacement opportunities to others who would do the replacements).  Those sites require the zip code in order to know where the customer asking for a quote for auto glass replacement service is located. This is so that the web site can make contact with the appropriate retailer(s) who will actually be doing the work for their price quote.

I’m not sure what other businesses use zip codes in pricing models, but since I had some spare time I did a little unscientific survey of local Chicago area businesses where I live by walking around to a number of Walgreens Drug Store locations in different zip codes in the downtown Chicago area where I did a store-by-store price comparison on a variety of non auto glass products.  For my very unscientific survey I chose three different products

  1. a 7.8 ounce tube of Crest® Pro Health Fluoride Toothpaste Clean Mint ($ 4.99),
  2. a 6 ounce box of my personal favorite GOOD & PLENTY® Licorice Candy ($ 1.59),
  3. and a 100 count bottle of Genuine Bayer® Aspirin 325 mg Pain Reliever ($ 6.79).

Granted those retail items aren’t even remotely close to windshields, but I did say my survey was unscientific so I took some latitude.  Anyway, I found that with all of the Walgreen stores that I visited in my survey area, the prices were actually the same for each of the products surveyed.  I also checked their online web site where I found prices were the same. 

I then extended my survey to a few other online web sites.  I visited two very popular retail web sites called Amazon® and the iTunes® Store.  Neither asked for my zip code to determine pricing for the products I checked.

One last observation I made when visiting the Safelite® “Get a quote” web page.  I found it interesting and wondered why they asked the question:

“Are you thinking of filing an insurance claim?” 

If you respond – yes – you’re then asked to provide the name of your auto insurance company from a long alphabetized drop down listing.  Under that drop-down box there is a statement:

Asking your insurance provider about your policy coverage and deductible is not considered filing a claim in most cases. We can help you with information regarding your insurance coverage. (You can always change your mind before your appointment.)”.

It was easy getting a quote when I didn’t say that it was an insurance claim.  It wasn’t as easy when I answered that I was filing an insurance claim.  Do you think that the price would be the same if you said it was for insurance versus if it wasn’t for insurance?  I was just wondering and I’m…..

Just sayin’………

 

1  Articles reporting on Ms. Han’s ABC Television affiliate WPVI in Philadelphia’s report that appeared in glassBYTEs® Auto Glass and Insurance Industry News on November 15, 2011, and on November 16, 2011.

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Associations

What associations have you joined?  The Merriam-Webster Dictionary defines associations as “organizations of people having a common interest”.  The definition seems fairly straightforward and easy to understand.  When you join a group with those who have a common interest it could be for something such as a golf club, a church group, the AARP, the NRA, a political party, the Veterans of Foreign Wars, even a company that you work for, etc.  The common interest which you have could be a hobby, a sport, an industry group or it could involve a social issue that you feel strongly that motivates you to join an association.  The list of associations and common interests are endless.  Common interests can remain for a short or long-term period of time.  In all likelihood a common interest is something that you’re probably passionate about.

If you’re in the automotive repair and replacement (AGRR) industry there are a three well known associations that serve the common interest or interests of their members.  There are associations such as AGRSS® (soon to become the Auto Glass Safety Council), the Independent Glass Association, and the National Windshield Repair Association.  You get a good sense of their main interest by their names and when you look at their web sites you’ll find:

  • The common interest for AGRSS®, which stands for the Auto Glass Replacement Safety Standard, “is a not-for-profit organization dedicated to the safe replacement of auto glass. AGRSS® was founded and is supported by companies in the auto glass replacement industry that keep safe installation as their primary goal.” 1 2
  • The Independent Glass Association and its members common interest is “the only association dedicated to the needs of the independent glass companies in North America. Its members are also dedicated to the professional and ethical installation of glass in a safe and proper manner. IGA members are located in all 50 states and ten countries.”1
  • For National Windshield Repair Association members the common interest they share is that they are “recognized nationally and worldwide as a professional source of reliable information on the windshield repair industry.  NWRA membership puts you on the leading edge of timely information and gives you a strong influence in the industry. Your membership not only couples you with the dynamic leaders of the windshield repair industry, but with a voice in your destiny equal to any other member.”1

1)     I have had the honor of being a member of this association.

2)     I am a member of the board of directors and vice-president of AGRSS®.

Each of these three associations has memberships which are strongly aligned to common interests.  When you visit their individual websites, each association clearly states their goals in representing the interests of their membership.  By joining any association members are making a conscious effort to align themselves with other like-minded individuals and companies who share common interests or who share similar goals (values, principals, interests or beliefs).  If you surround yourself with people who have a common interest, then you and the group as a whole should be able to achieve more of those shared goals and the association will further improve or execute on the shared common interest as well.  Associations need to constantly increase membership and grow their sphere of influence in order to build on their success at gaining notice of their common interest or they will fade away along with their shared goals.  If you’re going to join an association, actively participate and you’ll be able to help achieve that common interest.  Passion, along with values and principals are key fundamentals of all associations.

If you find that you no longer share a common interest in the association you belong you can leave and then find and join one that does.

Just sayin’……….

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Q & A with Lauren Fix – The Car Coach®

Lauren Fix is The Car Coach®   With her extensive and impressive background in the world of automotive safety, Lauren is seen and heard coast-to-coast on major TV shows, print, web and radio.  She is a winning professional race car driver and self-described alpha mom.  As an award winning “automotive and lifestyle expert” Lauren has an educational background in business, engineering and marketing; and is a renowned expert in the many aspects of the automotive industry.  I’m honored to have her answer some questions today.

Thank you for taking the time out of your busy schedule to answer some questions.  After listening to a talk you gave recently it was very apparent to all in attendance that you are very passionate about educating consumers to help make them become more aware of the importance of keeping their cars in good mechanical condition, as well as making sure they know the ins and outs of how to deal with the automotive service industry when they need their cars repaired.  You also are interested in helping those that want to provide the highest level of service to car owners understand the importance of having more knowledgeable customers.  It seems like you were born for mission.

How and why did you become The Car Coach®?

Lauren Fix:   I always loved cars and helped my father in the garage when I was just a kid.  By the age of 10 I was able to help him turn wrenches and get the tools he asked for.  I was a “tomboy” for sure.  When I graduated high school my goal was to be an actress, but after long conversations with my father, he convinced me to look elsewhere. I went to school for business, communications and engineering classes.  I started racing cars at the age of 16 and being on national TV has been just as much of an adrenaline rush.  After restoring cars, racing, designed brake systems and writing articles for years about cars, a friend approached me to be a guest on Motorweek, a PBS show.  After the show he suggested that I be a dealer trainer as the money was great.   I was working for my father’s brake rebuilding company and I had done everything from tearing down old brakes to designing the first drum-to-disc-brake conversion kit.  I did ad design, marketing and placement then became a National Sales Manager.  You name it and I did it.

This opportunity was great for me as I had been working in the aftermarket side and this opened doors to the manufacturing side of autos.  I started in the parking lot and chased cones; this was crazy I had all this experience and a college degree.  So I contacted the training company and explained my background, they gave me a chance with a marketing session and thought I was a perfect fit.  I worked hard and in a few months and I was asked to be a lead trainer and was lucky enough to get that slot.  I trained dealers and dealer principles for many years until 9/11 when we were near NYC and I knew it was time to end this chapter.

In the meantime, I started writing for magazines, websites, regional and national TV appearances educating and informing people about cars and the industry.  In January of 1996, there was a blizzard in Chicago and many people were stranded and didn’t know what to do.  That led to a phone call from Oprah.  Her staff asked me to be a guest on the show and help viewers see how they should be prepared.  That led to being a guest 6 times and many reruns.  That led to multiple national TV appearance on news and morning shows.  Then hosting a show on DIY for 4 years and now a regular segment on Time Warner Cable News.

I also had a performance driving school to top it all off, called Driving Ambitions; it was held exclusively at Watkins Glen International Raceway.  We taught 100’s of drivers three weekends a year from 1981 to 2001.  It was a great way to learn about people and their cars.

In addition, my husband Paul, and I started a company in 1989 called Classic Tube and we manufacture automotive and industrial tubing products in short runs.  I no longer have a desk there but I am still Vice President.  Paul also operates Fix Motorsports where we restore collector cars and vintage race cars.

I’m an ASE certified technician, although I only work on my cars and I’m also a long-standing member of SAE (Society of Automotive Engineers).  As the spokesperson for the Car Care Council I’ve been honored to help educate consumers for over 10 years and help drivers “Be Car Care Aware”.

You were recently a featured speaker at Auto Glass Week2011 that was held in Memphis.  What was the message you took away from your time there?
Lauren Fix:  Auto Glass Week was a great idea to merge multiple groups for a common cause, meet budget demands and allow your industry networking and educational opportunities.  I learned quite a bit about the industry and look forward to educating consumers on the importance of auto glass and how it integrates with safety.  AGRSS® is critical to consumer’s safety and drivers really need to be informed about an area that is never discussed in public.

Where do you see the auto glass repair and replacement (AGRR) industry going?  Do you see any problems that need to be fixed?

Lauren Fix:  I believe that the auto glass industry can learn from the successes in the automotive aftermarket with educating consumers to be smarter customers.  Very little is ever mentioned and insurance companies control the outcome, and as tightly as the drug companies control doctors.  This needs to change for all drivers’ safety and consumer’s pocket books.

What do you think about the importance of AGRSS®, the Auto Glass Replacement Safety Standard® Council’s mission relating to consumer safety?

Lauren Fix:  I think the mission makes sense and they are on the right track – getting more eyes to the website and a consumer education campaign will raise the awareness for all auto glass installers.  There are many ways to do this without spending millions on television commercial campaigns.

In your experience, what do drivers and consumers understand about auto glass?

Lauren Fix:  They never even think about it until there is a crack or chip.  Then it’s left in the hands of their insurance company and who they push them toward.  Consumers are not making the choices for themselves because they are sheltered from the fact and insurance companies are very aware of it so they handle it for them and control the industry for the most part.  Consumers need to make their own choices.

Do you think that drivers are aware that their windshield is an important safety device in their vehicle?
Lauren Fix:  I don’t think they have a clue.  They think seatbelts and airbags work together as a team, not realizing that the windshield is a critical component.

What is the most important safety tip that you personally wish that all drivers knew about?

Lauren Fix:  I wish that driver’s realized that they need to learn more than what is taught in driver’s education when they were 16.  Safety is more than driving skills and being aware, it’s about making their cars safer on the road for themselves, their families and other around them on the road.  Our culture of cars being just transportation is a fallacy because they are an integral part of our everyday lives.  Drivers should take the automobile and the industry more seriously; and with respect. If you look at how drivers in Europe see their vehicles and their training it could be a good starting point for the US and Canada to start including some of their programs here.

What does it mean to you to be selected by the Car Care Council Women’s Board (WB) and the Automotive Communication Council (ACC) 2011 winner of the Automotive Communication Award for “B to C Public Relations Efforts” and also the “B to C– TV Segment for the The Car Coach® Show”?

Lauren Fix:  This is a great honor, I take being The Car Coach® very seriously, but with some fun involved too.  To be recognized for my efforts just confirms the fact the we are doing all we can to help all drivers everywhere to be more informed, be safer on the road, maintain the value of their cars and learn to love them at the same time.

And finally, tell me about your mission and goals for the next year.

 Lauren Fix:  I just started working with The Weather Channel, and this will offer me the opportunity to reach more drivers.  This is all in my monthly newsletter, blog, twitter and RSS feeds.  My daughter, Shelby, and I are finishing my 4th book and her first; she is the Teen Car Coach™  helping teens and younger millennial drivers be informed as this generation looks at autos in such a different perspective.  My mission is constantly evolving as new opportunities arise from speaking to writing to television opportunities.  Also watch for me on QVC and Fox Business Channel. The Weather Channel has added automotive to their lifestyle programming.  I’m always listening and learning; so feel free to contact me at www.laurenfix.com.

Thank you again for taking the time to reach out to those of us in the AGRR industry with your message.  Those of us who are part of AGRSS® certainly appreciated your appearing at Auto Glass Week in Memphis last month. 

Lauren has a strong voice in the automotive industry customer service space.  Through her brand and her high visibility in the automotive industry, she can help bring needed attention to the importance of safe windshield installations to the driving public.  That’s what I believe.  What do you think?

Just sayin’……

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Factotum: A Day in the Life of an AGRR Owner

When you own or operate an auto glass repair and replacement (AGRR) business, you find yourself wearing a lot of hats.  I know that was the case when I was operating a small business in Florida back in the late 70’s and 80’s. I worked hard to make it successful, and luckily I had the help of a lot of great people.  If you work in a small to mid-sized shop, there are a number of tasks to handle after the phone rings:

  1. Answer customer questions
  2. Offer quotes and (hopefully) take orders
  3. Input customer data into the point-of-sale program
  4. Participate in one of those never ending conference calls with TPA’s (Third Party Administrators) and get all of the required approvals (and probably put other customers on hold in the meantime)
  5. Contact your supplier for required parts via phone or online order
  6. Coordinate and schedule an appointment for the installation of the glass
  7. Invoice the person paying for the replacement
  8. Make collection calls for slow payers

And these are only some of the things that you have to do to properly take care of a customer.  Just think of all the different tasks that you do every day to run your business.

Then there’s the challenge of figuring out how to make the phone ring vianewspaper and Yellow Pages ads, internet advertising, social networking sites, and face-to-face sales calls to potential customers who you hope will send you referrals. There are countless other sales and marketing tactics that you can use to help customers to find your business, and you have to spend a lot of the time and money to make that happen.

Then there is the time that you spend managing the people who work for you, scheduling jobs, ordering parts, making sure that you’ve got the right materials to do a proper installation, and maintaining a clean and safe shop. You have to purchase trucks for mobile installations, and buy all of the different types of insurance for your business to operate. You have to keep records for your business, pay bills, hopefully pay yourself, and of course account for and pay taxes to the federal, state and sometimes local governments.  When you start to write down the list of things that you do, the tasks are endless.  The various skills that you need to be successful are truly impressive.

If you’re lucky enough to have a larger scale business, then you must find a number of dedicated people with similar skills who can help you to run the business as it continues to grow.  It’s an exciting and somewhat daunting task, isn’t it?

Merriam-Webster Dictionary defines FACTOTUM as, “a person having many diverse activities or responsibilities.”  The origin of FACTOTUM is Latin and the word literally means to “do everything.”  When you own a small business you have to wear a lot of hats.  You need a lot of knowledge about everything in your business.  There are many resources in our industry that can help you to run your business.  For example, there are a number of AGRR associations that can provide helpful inside information about our trade – the Independent Glass Association, the National Glass Association, NWRA and AGRSS® to name a few.

Running a business is hard to do.  Wearing all of those hats keeps you very busy and you’ve got to truly master countless parts of your business to keep a step ahead of suppliers, TPA’s, insurance companies, competitors and many others who often make running your business even more challenging.  It’s tiring to constantly focus on controlling costs. It takes a lot of work to find the right recipe for success that ensures that your business is profitable and viable.

But in the face of all of this, it’s worth the effort. Just know that you are indeed a FACTOTUM, so hold your head up high.


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