Posts Tagged repair and replacments
Just Sayin’ Blog – Auto Glass Networks – Part 1
Posted by "Just Sayin'..." in AGRR, Auto Glass, Call Centers, Insurance, Legislation, Technology, Uncategorized on August 21, 2012
In my last blog I wrote about Safelite® Auto Glass and its SGC Network, which is one of the networks (or third party administrator -TPA) that operates in the auto glass repair and replacement (AGRR) industry in the United States. Safelite® released a new addendum to its Network Participation Agreement that outlines new guidelines or requirements on AGRR companies that either participate in the SGC Network as sub-contractor’s that Safelite® uses to do repairs and replacements for Safelite® or those AGRR companies that are forced to invoice work they do for certain customers through the Safelite® SGC Network. A reader of that blog suggested that I write about networks in general, so here goes.
While Safelite® is the largest AGRR network it is by no means the only one. All AGRR networks share some similarities, but each is unique in how it operates. Since there is no single AGRR company that covers every square mile of the United States providing services solely through its own AGRR technicians to consumers, every network must attempt to aggregate the services of thousands of disparate AGRR service providers into a single “quasi-retail” service entity. Each of the networks attempt to replicate a full service AGRR company that looks like it is capable of servicing each and every consumer with a single price and service offering that suits the needs of every insurance or fleet company customer it has in its network. That’s where the problems begin.
The first problem a network has to manage is the reality that each of the AGRR companies that participate in its network are not under its control, so a network has to deal with inconsistency of service levels to its customers. That is an issue; a really BIG issue. Currently, a network attempts to counter inconsistencies by stipulating increasingly detailed and specific guidelines in its effort to create some semblance of uniformity amongst a very large, broad and diverse set of participants. How do the networks accomplish that? It takes a great deal of work to try to herd all those cats. Some do it poorly while some are more accomplished at the task.
It’s quite the challenge though, and perhaps never so clearly indicated as by Safelite®’s recent addendum whereby it now seeks to go beyond standards of repair and replacement practices to actually regulate the business conduct of its participants. By venturing into this area it may seem as a case in point that the network may be leaning into “too big to fail” territory, as it tries to corral a wide range of participants into a single product offering. It is likely to be very difficult, if not impossible for a large network to monitor and enforce all of the stipulations on which it seeks agreement from its numerous participants.
It makes me wonder if the newest Safelite® addendum might actually be showing off some of the real challenges that at least one of the largest network entities is experiencing in trying to solve a problem and meet its entire customer needs.
As I mentioned, every AGRR network must attempt to cobble together its own group of AGRR service providers (participant) attempting to provide a service model that it hopes attracts its targeted customer(s).
That’s the networks strategy. Now how about your decisions as an independent AGRR retailer? It’s probably best to make your own assessment of how network participation fits into your overall marketing and sales strategy. You may not be able to avoid networks altogether, as most insurance companies require that billing for the service provided be processed through a network. But remember, in all cases, it is the choice of every AGRR company to decide whether it will or won’t participate in the opportunity to receive repairs or replacements from every AGRR network. As an AGRR retailer, you may prefer to do work for one or more of the networks because the network provides value to you in exchange for the value you provide. Some AGRR retailers choose not to agree to the pricing or service requirements that a network has on participating. That again is the choice of the AGRR retailer. It’s probably not a good strategy if you’re relying on a network for your repairs and replacements, but if you do you should be consistently working on lowering your costs as you can be assured that the network will be looking for you to lower the value you receive for repairs or replacements.
Networks are an established part of the AGRR industry and they aren’t going to go away. Legislative initiatives may be attempted state by state to help regulate or moderate how networks operate, but networks do provide value to the customers that use them. Whether or not the networks that operate today will be in business five years from now will be determined by the value, service and quality that it provides to its customers. Only the strong will survive. More on how networks operate in a future blog posting.
Perhaps the best advice for today’s AGRR retailer is simpler than we all have been thinking: “focus intently on the customer, listen to what they need, and set about to do the right thing.” A very simple and straightforward concept.
Sam Walton is quoted as saying,.
“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”
Stay focused on your customer and provide value to them and you should do okay.
Just Sayin’….
56
Aftermarket glass, AGR, AGRR, agrr industry, auto glass, Auto Glass Company, auto glass industry, auto glass networks, Auto Glass Safety, Auto Glass Week, Auto Insurance, Automotive Expert, automotive safety, choice, customer, customer service, David Rohlfing, fleet, fleets, glassbytes, Insurance, Insurance Industry, just sayin', network participation agreement, repair and replacments, safelite, safelite auto glass, safelite solutions, sam walton, sgc network, Small business, state govt., the boss, tpa, US Govt, windshield, windshield repair, windshield replacement, windshields
RSS Subscription
Archives
- May 2020
- November 2019
- September 2019
- August 2019
- July 2019
- February 2019
- December 2018
- May 2018
- February 2018
- December 2017
- July 2017
- September 2016
- February 2016
- November 2015
- October 2015
- January 2015
- December 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- October 2013
- September 2013
- August 2013
- July 2013
- May 2013
- April 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
Categories
- 41
- 9/11
- Acquisitions
- ADAS
- aftermarket
- AGRR
- AGRSS
- Amazon
- August
- aumotive after-market
- Authors
- Auto Glass
- Auto Glass Networks
- Auto Glass Safety Council
- Autoglass
- basketball
- Batteries
- Battery
- Big Data
- Biography
- Boston Marathon
- Business
- Business Icon
- Call Centers
- Cardiac Arrest
- cars
- Collision Repair Industry
- conferences
- Congressional Medal of Honor
- Consultants
- Covid19
- Credibility
- customer
- Data
- Dedication
- Disruption
- Disruptive Innovation
- distrigution
- driverless car
- Driverless Cars
- Economy
- electric cars
- Emergency Room
- Federal Reserve
- First Responders
- Fleets
- Ford Motor Company
- Fortune 500
- General
- General Motors
- GM
- Golden State Warriors
- golf
- Groupthink
- Harbaugh
- ideas
- Innovation
- Inspire
- Insurance
- Interviews
- July 4th
- Leadership
- Legislation
- Memorial Day
- Military Service
- NBA
- NCAA
- New Year
- NFL
- No Bad Ideas
- OEM
- pga
- PGW
- Police Department
- PPG Industries
- President George H.W. Bush
- Programs
- recipe for success
- rental cars
- Retail
- Rube Goldberg
- self-driving
- self-driving car
- Service
- Sika Corporation
- Software
- Solera
- state government
- Success
- Super Bowl
- supplier
- Technology
- Third Party Administrator – TPA
- Tools
- U.S.
- U.S. Govt.
- Uncategorized
- United Kingdom
- USP
- VGRR
- Vince Lombardi Trophy
- Welch
- Windscreens
Twitter
- RT @Authorweek: A fantastic story that delves into the twisted yet brilliant mind of a serial killer... deliberateduplicity.com @DavidRohlf… 6 days ago
- RT @BookPings: What’s the killer’s motive? How are the victims connected to one another? @DavidRohlfing amazon.com/gp/product/163… https://t.c… 6 days ago
- RT @KdpBUZZ: Highly recommended - Deliberate Duplicity follows Sasha’s attempts to track down the culprit—a calculating, methodical killer… 6 days ago