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SGC & FARMERS EST. NEW RATES

NEW FAX, In MN, sgc and farmers just took away another 46%. This does not effect collision pricing though. so if your a body shop, you are treated differently. " All future invoices will be honored in accordance with these new established rates." They throw it out there and say this is now the established rates? This is crazy! should be illegal,price fixing! WE ARE NOT ON THIER NETWORK, yet they expect us to accept thier network rates? It just gets better every day. The low ballers are killing this industry! Bill them at fair rates and go to ARBITRATION. I see no other recourse, they are FORCING us to this!

Re: SGC & FARMERS EST. NEW RATES

2concerned, would you mind faxing a copy of the letter you received to 540/720-5687?

Re: SGC & FARMERS EST. NEW RATES

Post the new numbers here, please. Nothin' here yet in the price, er' excuse me, the FAX, machine.

Re: SGC & FARMERS EST. NEW RATES

SGC and Farmers here as well. 5% off from 0% off. Same other rates. But.......

...the effective dates are January 3rd 2006. NAGS effective date January 9th 2006. I have never seen this before. New O&A rates in place even before the NAGS effective date. Just have to laugh at all the new tactics they employ these days.

Re: SGC & FARMERS EST. NEW RATES

What is NETCOST or GERBER asking for in MN?

38% off and $25 flat labor here. Both are not only not "fair and reasonable" in this area, but are down right ridiculous.

At least the NETCOST csr's are honest enough to admit it, "we get that all the time sir". They usually agree to our pricing or negotiate something very reasonable. And thier csr's are also very informed and trained from my experiences with them. Same connot be said for others.

In fact I had one of my customer today tell me "he (the TPA csr) was down right rude and unhappy". I followed up by telling that csr "keep smiling" at the end of the phone call. He must have been having one of those days I suspect.

Re: SGC & FARMERS EST. NEW RATES

Why would you think one made up price would have an effect on making up another. The increases in the cost doing business and the increases in cost of goods sold should mean an increase. It must be greed not market that drive this. If prices cheeplite give out on contract are fixed as some post say, then they must be helping the ins. cos. drive down the profit of their competition. I think we are domed to failure under the present model. State laws need to be passed to stop conflict of interest 3rd party administrators. Maybe some complante to the U.S Commerce Dept. claiming restraint of trade? Happy Holidays

Re: SGC & FARMERS EST. NEW RATES

AGRR, I'LL FAX IT NOW. RATES IN RURAL MN WHERE +46 NAGS NOW THEY WANT 0% AND 43.5 PER NAGS HOUR LABOR. And I know for some of you that may sound real good but BELIEVE ME IT IS NOT GOOD! WE JUST LOST 46% AND MAYBE WE WILL CHOOSE TO NOT DO WORK FOR THOSE POOR CUSTOMERS THAT HAVE FARMERS INS. OR TAKE THE FIGHT TO THEM. ARBITRATION HERE WE COME!!!!!

Re: SGC & FARMERS EST. NEW RATES

I think you are right on Bob.

You might also add consumer education (most have no idea what to expect when a windshield is replaced or what a quality windshield repair should look like), as well as no idea of their rights under the terms/language of the actual ins. policy.

And lastly, as mentioned by 2concerned, fight for what you are worth. In our experience both customers and ins. co. will pay you what you want when they understand why and how you determined your "fair and reasonable" pricing. The others you have battle with in court and get paid that way it seems.

Re: SGC & FARMERS EST. NEW RATES

Here in the Pacific Northwest the new Farmers rates for SGC is 30 off, 43.50 per hour, & 20 per kit.

Not worth my time but I love the agents. Make it tough to take the job.

Re: SGC & FARMERS EST. NEW RATES

I guess the fair and reasonable +46% wasn't in Minn. or Belt'em just lowered prices for you. The next cheeplite already taking over in Canada. They only cut 5% in this market, passing my cut off point of fair. They don't play fair, all my cost have gone up including insurance but they say the market sets the price bull.. it's their power that set the price.

Re: SGC & FARMERS EST. NEW RATES

SINCE NAGS REBALANCE WE DO NOT DISCOUNT FROM NAGS WE MARK UP. HOWEVER BAD YOUR MARKET IS THEY WILL ONLY CONTINUE TO ERRODE PRICE UNTIL SHOPS ,,,, STOP IT!!!!!DON'T ACCEPT IT. I KNOW IT'S EASY WORDS BUT IT IS THE NAIL ON THE HEAD!~!!!

Re: SGC & FARMERS EST. NEW RATES

Question for XXX:

Are you getting paid your marked up prices?

We bill out but don't get paid a marked up price. We have to take them to court to get it.

Re: SGC & FARMERS EST. NEW RATES

YES WE ARE GETTING PAID. WE HAVE TO FIGHT A FEW OF THE BAD ONES ALSO WE HAVE YET TO LOSE. WE HAVE HAD ALL OUR SHORT PAYS CAUGHT UP TO DATE. IN RURAL MN IT WILL COST THEM MUCH MORE TO EVEN FIGHT THE SHORTS. WE RUN FROM 0 TO 144 UP ON NAGS! AND EVEN OUR CASH WORK STARTS AT 50 PER HOUR LABOR. WE DO NOT DISCOUNT FROM NAGS.REBALANCE WAS SUPPOSED TO TAKE CARE OF THE DISCOUNTING. SAD PART IS TOO MANY SHOPS ACCEPT HORRIBLE PRICING JUST TO KEEP THEIR GUYS WORKING,,, LAY THEM OFF FOR A FEW WEEKS AND THIS INDUSTRY WILL START TO REBOUND! I KNOW,,, THIS JUST KILLS US TO LAY PEOPLE OFF BUT I BELIEVE WE MUST MAKE A STAND. ACCEPTING DICTATED PRICING WILL ONLY ALLOW THEM TO ERRODE IT FURTHER UNTIL ENOUGH SHOPS GO UNDER OR STOP TAKING IT. I WILL NOT GO UNDER. I ,THIS WHOLE LAST YEAR QUIT TAKING IT. WE ARE STARTING TO REBOUND NOW. WE DO QUALITY WORK, WE BILL FOR WHAT WE DO, AND GO TO ARBITRATION TO GET PAID IN FULL. IT'S A FIGHT, BUT I AM A PIT BULL! WITH INS CO'S THAT WON'T PAY A FAIR RATE WE LET THE CUSTOMER KNOW WHAT'S GOING ON, THEY PAY THE BILL AND TAKE THE FIGHT TO THIER INS CO, AND AFTER THAT MOST DROP THEM AND GO TO A CO THAT IS WORKABLE. I ADVANTAGE WE HAVE, SMALL TOWN, WE ARE INVOLVED,OUR CUSTOMERS TRUST US, THEY ARE OUR NIEGHBORS, AND FRIENDS. QUALITY BUILDS TRUST!!!!

Re: SGC & FARMERS EST. NEW RATES

2concerned-46 rate change is absolutely rediculous.That in itself should be taken to court. Look, it's not like we all have different list prices in different parts of the U.S. but I am sure we are all paying pretty close to the same prices for parts. Not no 46 % difference in our cost for the parts. I understand there are different costs of livings in this country too. But come one. Why such drastic difference in discounts from the TPA's/Insurance companies throughout the country?
And the rebalance is still revenue neutral? Yeah Right. Friggin insurance companies are crumbling our nation. I think the insurance companies are commiting insurance rip off fraudumacalit!!!!!!!!!! We just need to shut down our glass shops and open up a new insurance company so we can go on company paid vacations with the record profits we were able to scam off of each other!

Re: SGC & FARMERS EST. NEW RATES

Wednesday, December 21, 2005
Dear Participant:
Farmers Insurance has announced revised pricing for the participation program. Farmers Insurance has established the following rates for shops in your area effective for work performed on or after January 3, 2006:
NAGS Windshield: 30.0% Off (-) NAGS List
NAGS Tempered: 30.0% Off (-) NAGS List
Labor: $43.50 Per NAGS Hour
High Modulus/Non-Conductive Urethane $20.00 1.0 Kit
$30.00 1.5 Kit
$40.00 2.0 Kit
All other urethanes: $15.00 per NAGS Kit quantity
Windshield Repairs: $50.00 +$10 For each additional break. Maximum of 3 repairs total
The prices above supersede any prior pricing for Farmers Insurance. These rate standards do not impact the current Collision pricing standards.
All invoices should be billed to Farmers Insurance at the following address
Farmers Insurance
P.O. Box 182279
Columbus, Ohio 43218-2279
If you send your invoice via EDI, please use mailbox SAFL107, and program I.D. 09030.
Sincerely,
Contract Management
Fax: 614-210-9504
www.sgcnetwork.com Rate A&B

Re: SGC & FARMERS EST. NEW RATES

THANKS FOR POSTING IT AGAIN LEE BUT HOW CAN ANYONE PARTICIPATE WITH INSANE PRICING LIKE THAT? THAT IS A FORMULA FOR GOING BROKE! AND HOW IS IT THAT FARMERS HAS ESTABLISHED THIS PRICING,,, TO NOT BE, "PRICE FIXING"???? PLEASE ANSWER THIS. SHOPS AND A FREE MARKET IS NOT DICTATING THIS,,,, SGC AND FARMERS ARE! THIS IS NOT JUST A JOKE TO "FAIR AND RESONABLE" THIS IS A SLAP IN THE FACE AND A BOOT TO THE BACK-SIDE! I AM NOT A PARTICIPANT AND THEREFORE I DO NOT, CANNOT AND WILL NOT ACCEPT PRICING ANYWHERE NEAR THAT. PRICING WITH FARMERS SINCE THE REBALANCE WAS BARELY AND NOT QUITE REVENUE NEUTRAL WAS ONLY A LITTLE PROFITABLE, AND THERE ARE NO CHANGES FROM NAGS OR COSTS OF GOODS TO DICTATE A DECLINE IN WHAT IS FAIR AND REASONABLE SO WE(OUR SHOP) WILL GO TO THE FIGHT AND GET PAID BY THE SAME RATES WE HAVE BEEN ON LEADING TO NOW!IF ANYTHING WE (OUR SHOP) WILL NEED TO RAISE OUR RATES LIKE EVERY OTHER INDUSTRY HAS TO COMPENSATE FOR HIGHER COSTS TO STAY PROFITABLE. THANKS AGAIN LEE,,, BUT NO THANKS!

Re: SGC & FARMERS EST. NEW RATES

are you sure it isn't list x (-)30 or 30 over list?

at least that is what i would hope for

Re: SGC & FARMERS EST. NEW RATES

It says 30% off (-) NAGS
DW 1341 $187.35 list - 30%= $131.15+ $15.00 kit and $95.70 labor for a total of $241.85 + tax. We are not on lynx or sgc as our main source of biz lies elsewhere. Of course you could call 10 auto glass installers(note I didn't say shops) and get 10 different prices. Around here(So Cal) the prices would mostly be in the low $100.00 range. These installers would love to bill at these rates.

Re: SGC & FARMERS EST. NEW RATES

The other problem, the black service market, stolen product, no sales tax, no licence, no waranty, no liability insurance, no income tax, no brick and mortar shop, but pricing to lower every ones price.

Re: SGC & FARMERS EST. NEW RATES

Allstate has sent new revision tonight also.Will post in am.Have not read complete but looks like major drop effective on new nags Jan.9

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