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IT WILL BE A YEAR AGO THIS MONTH THAT NAGS DID ITS FAMOUS REBALANCE ACT. SO I LOOKED AT MY FEBRUARY 2005 AND COMPARED IT TO 2006 YEAR TO DATE THIS IS MY STORY.
1. JOB COUNT ABOUT THE SAME OR UP A LITTLE.
2. GROSS SALES DOWN 19% IN 2006 .
3. I HAVE CUT OPERATING COST IN 2006 4% .
4. I WENT FROM A 12.56% NET PROFIT IN 2005 TO A -21% IN 2006 THATS A 33.56% DROP .
5. COGS IS UP OVER LAST YEAR 12%.
I WOULD LIKE TO THANK NAGS FOR THERE GREAT UNDERSTANDING IN WHAT IT TAKES TO RUN A BUSINESS. I WOULD ALSO LIKE TO THANK THE NETWORKS THAT HAVE DONE A GREAT JOB AT NEGOTATING THESE GREAT CONTRACTS WITH THE INSURANCE INDUSTRY . AND LAST BUT NOT LEAST THANK THE BIG GLASS CORPORATION THAT OWN NETWORKS FOR SCREWING ME AT BOTH ENDS AND STILL TREAT ME LIKE YOU REALLY CARE . THANK YOU ALL.
I agree 100%, I have made references to this in other posts. Many still want to focus on steering including the IGA. Don't get me wrong steering is still a problem, but we have adapted and know how to deal with it. The rebalance was a total disaster!!! Name 1 wholesaler that anyone is buying from that is basing their pricing off the rebalance? The insurance industry totally has used this to their advantage, including our dear friend Hal. I have been in this industry for 14 years and we replace 300/windshields a week. Never have I seen an industry lose focus of the actual problem and focus its time and resources in the wrong area. I am so tired of the focus on steering and not on the real problem which is our pricing methodology and the way the insurance industry has exploited it. Fighting steering is not going to make me money, the problem is with pricing.
I agree also!! We compared our 2004 to 2005. In 2005 we purchased more glass, and income was down. We are doing more work, and making less money! We have cut back, and tightened up everything possible. It's sickening! ~Western Wishes~
i have written before of the same problem, and we have cut every non-essential thing that we could think of, just like you guys.
i have always blamed my self for not being smart enough to figure out what to do about the numbers. at least i am glad i'm not the only one experiencing these things.
now if we could just figure out as a group what to do about it, and i'm not talking about just giving lip service to fixing it, i mean actually fix it.
problem is tpa's setting our prices have us trying to match pricing with a company who manufactures their own glass.
i think lynx has always dropped pricing to try to be competitive with safelite's network, dragging us all down with them.
doing more work for less money has been a trend over the last 5 or 6 years for us, we take the number of jobs we do and divide that into the gross sales for autoglass and have watched that average price per ticket drop and drop and drop.
Have you noticed also in the last few years how the windshield installations are sorrier and sorrier. Not too long ago I had one that had bubble gum just to the right of the VIN notch. I got the pictures but you can't smell pictures.
I still believe licensing will get rid of the hacks--when there are no more hacks the price will go back up, especially if the enforcement tool was AGRSS. There would be post work inspections, just like LYNX was supposed to do at their outset
If you're loosing money you better refigure all prices. What you sell for, less cost of glass and supplies, less all other expenses has to come out positive or you're on borrowed time. If you take it to far and go under and you do good work, you have done your customers a disservice. Neon may not be a total answere but they can help and at least there is a chance of better things. If you just sit back and wait for the crumbs from S.L. and Lynx its nothing but a down hill slide. Don't sit back and wait for the next letter telling you how much less you will be paid.
If a company pursues the network model, you are chasing a bankrupt business model proven so by Safelite.
Yet it seems that the other networks continue to do exactly that. One must wonder how the group of Chase Banks that currently hold Safelite continue to allow them to operate as such.....unless they are getting pressure to do so by some with more money than Chase.
Now, who do you suppose that would be, and what would their benefit be to do so?