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got my o & a from state farm today

mine is 12% over nags list and looks like 100 flat labor. at least they say not to exceed 100, sounds like everything is 100 to me!

now i just have to figure out if this is good or bad?

i saw this happen the last time, we were at 10% over list, and a couple years later here we are at 62 off.

so we all know where this is headed, are we all still mad enough to not participate?

Re: got my o & a from state farm today

that sounds good in comparison, my O & A is already 10% off list.

i want to see what iga comes up with before i figure out what to do.

Re: got my o & a from state farm today

i spoke to a friend who signed state farms' body work contract. they get 44 per hour, so i guess glass shops get paid less to do the same work.

with state farms cap of 100 on labor, (which just might be illegal?), at 44 per hour you max out at 2.2 hours. anything with more nag hours is just a donation to state farm.

the more people i talk to the more i learn.

Re: Re: got my o & a from state farm today

The phrasing of the letter is interesting: "Amount invoiced not to exceed 10% off NAGS list price. If I bill at 11% off, am I in violation? How about 10% on?
When you read the next paragraph about the competitive bid process, it looks like SF is fishing for responses before they issue the real numbers.

Re: Re: got my o & a from state farm today

Anyone else wonder why it doesn't say anything about MATERIALS???

Re: Re: Re: got my o & a from state farm today

They are sure being sweeet to us (not to exeed +42 & not to exeed 120 labor. I'm with Brian what about kits? Before you think this is so great let me tell ya it's still 120-150 less per job of where we were 2-3 years ago. and where will we be in 6 months or a year??? This is just another way of keeping flat labor and losing money on kits. Also what about NET PRICED PARTS!! Looks like they are handing us the knife and saying cut your own throat! Have ya bled enough? If not now when is a good time to show them they have reached the bottom. Cause that's what they are looking for!! HAVE YA HAD ENOUGH YET?

Re: Re: Re: Re: got my o & a from state farm today

Not until WE take control of our own destiny will we ever see "Fair and Resonable" prices. Why does anyone think they (Ins.Companies) would like to treat us fair, we are our worst enemy, there will still be some to give deeper discounts to them. They just can't go broke fast enough.
It is time for us to take control of our industry, no-one else will ever do it for us ! Who else knows what is fair and resonable but us?
Can we tell Wall-Mart what we will pay them for a toaster??
Think about it people, we must do something NOW, OR IN 3 MONTHS "THEY" will start in cutting our throats again, it will not be 12% plus then, they will start again to rob from us deeper and deeper.
What about kits, glass primer, pinchweld primer, razor blades,($2.00 gal. gas) other materials we just give to them?? When is the last time your premium went down?? THINK HARD ABOUT THIS !!

Re: got my o & a from state farm today

My State Farm O&A is for a plus 42% and labor not to exceed $120. per job. This might sound great to those of you who are at -10% but for me this represents a average loss of $50.00 per windshield over my last O&A rate. I'm tired of always getting less and less while my cost keep going up. State Farm represents approx. 80% of my windshield business. I would be only too happy to refuse to do thier replacements at this rate but I know that the other 3 shops within 20 miles of me will be more than happy to take all my refused jobs. I either accept it and try to keep going with less profit or I will be closed within a year without State Farm jobs.

Re: Re: got my o & a from state farm today

i feel for you and the position your in and it is ironic that the others in your area don't realize that their on the same path as you would be if you refused the o n a how they can say they are a true representative of our industry is beyond me.

Re: got my o & a from state farm today

exactly what they want:

i'm afraid of what i will loose, so i will make less and keep going.

that's how i got where i am today, if this anti-steering lawsuit works, maybe it will give direct billers some even footing.

Re: got my o & a from state farm today

cost + 42% holly stink batman thats alot!

Re: got my o & a from state farm today

The wording is not much different than it has been for years.

dhesives and labor did not change?

Why all the new comments on this? Am I missing something? All I see they changed is the maximum discounts paid. the rest is the same as it has been.

Used to (probably 8 years ago) they would reject our EDI invoice even if be billed them less than the maximum amount they allowed. They reworded not long after that and started accepting invoices for any amount up to the max that O&A allowed.

We had shops in three different markets and would see a difference of several hundred dollars in the max they paid even though all the shops were within sixty miles of each other. (sorted by county population.)

Yeah they cut into our pockets more and I do not like it either, but where is the rest of this coming from?

Re: got my o & a from state farm today

This whole thread was from before the rebalance, some nutty glass guy has resurrected it. And at the time +42 was not quite price neutral from the at the time current pricing. I guess some one thinks =42 is alot of $$$$,,, what did you just get into glass yesterday?

Re: got my o & a from state farm today

Must be nice to be in a dinky market. I live in a county barely large enough to qualify as an A market so we get a whopping -15% and $100 labor. Not that it matters all that much I guess, because we don't get much Farm work anymore. Until a year ago we were jamming on SF repairs and now our repair business is down 44% from last year primarily because SF don't waive deductible for repair anymore, and then after that our competition across town started offering their sad-sack repairs for $29.95. Is 43 too young to retire??? If I try to make it to 67 I'll end up at the poor farm!

Re: got my o & a from state farm today

goin' broke,,, yes it is GREAT to be in a DINKY market! I left the big city,, as a NOVUS franchise, and one of the best they had, for a DINKY market. Tell you what,, my Dinky market pays better than most but about 60% less than it used to and at least 40% less than it should!!!! I've personally done over 35000 - 40000 repairs, is 43 too young to retire? yep I'm 52 and need to find a younger guy to take over where I'll have to leave off! In our market there is very little or NO discounting from nags. actually most ins work is PLUS nags lists. Even our cash work starts at list and 50 per nags hour labor. Some would love what we have,, but it won't change until they say no to dictated pricing. Like the gas wars of the early 70's, stations drove it right into the ground thinking VOLUME,, but slowly they dug out, and found out cheap will only get them broke! Also, legislation got involved and set limits to how low they could go,,, geeee what a concept!!!! At any rate,, again, welcome to the forum,,, I have'nt seen you post before, but welcome, and,,,, just quit it,,, goin' broke I mean!!

Re: got my o & a from state farm today

Goin Broke,
We are in the same situation as you. Our business is located in a small county. SF has us in an "A" market as well. We dropped of ALL the O&A's about 18 months ago and took a huge hit on auto glass sales. We have tried to be innovative, did a radio campaign ad for 6 months that solely focused on auto glass and the importance of proper installation and customers right to choose. Also tried a coupon on the back of the local grocery store receipts where we offered Windshield Repair for $30, coupon was required, in-shop service only, must pay at time of service. (We specifically ran this promo to capture the SF market in our area). The first time the sales rep offered us the coupon for free, 2nd time, cost me $200 for 4 months. I will tell you this, our auto glass market has skyrocketed, we are probably up 50% over last year. This portion of our business was considered filler work. Now most every morning we are installing auto glass. We are also not the cheapest in town. We do not install $150 w/s.

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