Posts Tagged networkers

Just Sayin’ Blog – Is it Time for Licensing?

I read an article relating to the Novus Super Session at the organization’s Annual Franchise Conference held last week in Tucson. A representative from one of the networks that operate in the automotive glass repair and replacement (AGRR) industry in the United States attended the conference and discussed industry related issues and ideas. One of the issues discussed related to the responses to survey questions that the network had asked of some number of in-network shops that either are:

    1. required to bill through the network for the insurance or fleet work that these shops do for an insurance company that utilizes this network as an administrator or
    2. shops that are asked by the network to do work on the behalf of the network for an insurance company or fleet account that the network either can’t or doesn’t want their own company owned technicians to do for some reason.

The survey question that the representative said received the most comments related to unlicensed and/or unregistered AGRR shops. The network representative reported that when the survey responders were asked if they would support the regulation of auto glass shops in their states a resounding 74.2% responded with a yes. I think the question relating to regulation of auto glass shops an interesting one and I support the regulation of auto glass shops that do replacements.

When you consider all of the various “services” that are regulated by states, it is inconceivable to me that auto glass replacements (and other automotive repairers) are not. I looked on the web site of the Illinois Department of Financial & Professional Regulation (IDFPR) that oversees and licenses those considered “professionals” by the State of Illinois. There are 237 professions that are regulated by the IDFPR starting first with those who provide “Acupuncture” services. That seems like a profession that should be regulated. If you’re going to have someone perform acupuncture on you, would you want just anyone off the street be allowed to stick needles in you? Probably not. The listing ends with “Veterinary Technician”. The professional listings include some in the medical profession, but not every specialty is listed so if you add every regulated and/or licensed professional’s in the medical field to the list on the web site would be much longer. How does the state you live regulate those they consider professionals? Do you have 237 different professions regulated and/or licensed by your state?

I think it’s interesting that some of the professions that are regulated and/or licensed by the State of Illinois include:

Real Estate Appraiser                                             Athlete Agent

Cemetery Customer Service Employee                    Community Association Manager

Detection of Deception Trainee                                Nail Technician

Shorthand Reporter                                                Timeshare Resale Agent

Understanding that a few of the professions on the truncated list above taken from the IDFPR web site could, for instance, certainly cost you money if you had a bad appraisal via a Real Estate Appraiser, but in all likelihood none of these licensed and/or regulated professions are going to put your life at risk. A faulty windshield installation, on the other hand, could cost you and/or passengers riding in your vehicle serious injury or in a worst case scenario a life.

If you visit the AutoGlassSafetyCouncil.com or SafeWindshields.com site you’ll find a variety of information regarding the importance of windshields in auto glass safety. A question on the SafeWindshield.com site asks:

What role does my windshield play to ensure my safety in an accident?

The windshield provides a significant amount of strength to the structural support in the cabin of the vehicle. For instance, in a front end collision the windshield provides up to 45% of the structural integrity of the cabin of the vehicle and in a rollover, up to 60%.

There should be no dispute regarding the importance of a windshield in ensuring the safety of auto and truck passengers, asking that those who install your windshield to be licensed and/or regulated doesn’t seem unreasonable to me? If in the State of Illinois the state government feels that there is sufficient need to regulate and/or license Nail Technicians, Athletic Agents or Shorthand Reporters, wouldn’t you think that the same state legislature would take a look at various automotive repairs that if not done properly, could cost someone a serious injury or death?

The network representative at the Novus meeting was quoted as saying that for those that the network surveyed:

“By far, the largest problem was unlicensed/unregistered shops.”

You can certainly downplay the network that provided the survey results when asking the question “What was the largest problem in the AGRR industry?” (some might suggest the right answer to the question is the network providing the information is actually the largest problem in the AGRR industry), but is it time to consider the licensing and regulation of the AGRR industry considering the importance of the windshield to occupant safety? Perhaps that licensing or regulation could include adherence and verification of replacements to the Auto Glass Replacement Safety Standard®. That might be an unpopular position for some, but would it be so bad? As auto glass professionals what are we afraid of?

Just sayin’.

 

AGW 2014 Free Admission

Link to Free Admission Ticket to Auto Glass Week 2014

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Just Sayin’ Blog – Inconvenient Truth(s)

An inconvenient truth is a truth that no one likes to admit, but it is the truth nonetheless. A number of these inconvenient truths exist in the auto glass repair and replacement (AGRR) industry and everyone in the industry deals with them every day.

 

 

Over the years it has become more and more difficult to find success in the AGRR industry. Once upon a time, anyone could own a retail auto glass company and survive, but I think that has changed. One inconvenient truth is that some in our industry aren’t going to survive. As an owner you’ve got to master many new tasks that didn’t even exist 10+ years ago and some owners just aren’t capable of doing so. As a business owner you’ve got to figure out how to attract customers, especially in a time when the weather, the economy and miles driven are working against your business.

As we entered the new millennium, who in our industry really would have seen the need to understand the concept of search engine optimization (SEO) for a “website”? Who would see social media sites such as Facebook™, Twitter™, Craigslist, etc. becoming such an important way to market and communicate with customers; or that the Yellow Page Book™ that we once relied on would become a relic of the past?

Who, other than Steve Jobs, the co-founder of Apple®, would have thought that you could ask someone called Siri, the lady that lives inside my iPhone to list the “closest auto glass shops” near where I live in Chicago. Siri told me “Careful with the broken glass, David,” and then she gave me a listing of fifteen AGRR shops with two names (Safelite® Auto Glass and Gerber Collision & Glass) you’d easily recognize in the market because both are big advertisers in the local media. I also told Siri I was looking for “auto glass in Chicago” and she told me “I found fifteen glass repair shops in Chicago:” followed by a slightly different list of companies, but including the same two names aforementioned. Somebody is paying attention to their internet strategy aren’t they? Are you?

How convenient you make it for your customers to interact with you online will contribute to your future success. If you’re not willing to embrace innovative ways to grow your business in the ever changing marketplace you compete, you will not attract the customers willing to pay you the best price for the products and services that you provide. The truth is that if you’re going to survive and thrive as an AGRR retailer or as a network, you have to know that no one is going to turn the clock back to make it easier for you to be successful in your business. You have to compete in the marketplace with the hand that is dealt to you each day and if for some reason the way business is done changes tomorrow, you’ve got to figure out how to deal with it.

 

Another inconvenient truth is that AGRR networks provide great value to the clients that utilize the various services offered. As much as those who don’t participate in networks complain about the existence of them; clients vote with their feet and they obviously perceive value in the bundled services that networks provide. Can, or will, that change? Certainly it can change, but in the absence of a client deciding to take back direct responsibility for managing its AGRR losses (or a new platform that could take the place of the current networks that operate in the AGRR industry) it’s unlikely. We could certainly see movement of clients from one network to another network in the coming year(s) of course; and depending upon the relationship that your company has with the network that “wins” a new client you can hope that more profitable jobs come your way. But if that hope is what you need to make your business successful you might look for another source of jobs that you have more control over.

 

And staying on the topic of networks; I don’t think that a network that utilizes a “buy/sell” or “spread” (when the network “buys” the glass repair or replacement from an AGRR retailer providing the repair or replacement and then “sells” the repair or replacement to its client at a higher price) pricing model for its clients can continue to exist long-term in the marketplace. Relying on the AGRR retailers who actually do the repairs and replacements to accept lower and lower prices, while continuing to provide high quality repairs and replacements has to someday hit a wall. At some point AGRR retailers will push back and the networker that only makes profit on the “spread”  is going to have difficulty providing its clients with the same levels of service other competitors can provide in the marketplace. Those networkers must know this.

 

You can’t really find the greatest success in your business without surrounding yourself with the best people you can find. Basketball legend John Wooden was quoted as saying,

Whatever you do in life, surround yourself with smart people who’ll argue with you.” 

Sound advice from a true winner.

If you’ve been in the AGRR industry for a while you’ll remember one of the true gentlemen that help build it –Larry Anderson, President of Harmon Auto Glass back when it was a part of Apogee Enterprises, Inc. On his office desk in Minneapolis there was a small sign that read “Delegate Authority. Ruthlessly.” Larry surrounded himself with many of the best in the industry. There are some owners in the AGRR industry who don’t value the people that work for them. You can’t be successful if you don’t take care of those who work for you and let them have a voice.

 

Yet another inconvenient truth is that just because you have money, it doesn’t mean that you’re going to find success in the AGRR industry. History has proven that businesses owned and managed by those who have direct experience in the industry find the greatest success. Sadly, those that don’t have the experience, regardless of the size of their checkbooks, historically have tended to not be successful.

 

In writing my blog posts over the past year I’ve tried to raise issues about which I think those in the AGRR industry (or are associated with it) should give thought. I know that there are more inconvenient truths regarding the industry that no one likes to admit that I’ve not touched on, so please let me know what yours are.

Just sayin’……

 

  

 

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