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I have been following the group for some time, I am from Australia and things are not quite as bad in our industry; however the insurance groups are trying to squeeze us too.
Here is a thought, why don't all the small operators stick together. We have done this in Australia and made a National Group made up of small operators. We have 90 members and growing.
United we can negotiate deals direct with Insurance groups and have conditions such as sole supplier deals pushing the big guns like Belron out.
We have now have most of the insurance groups using our services. Price is not huge; however you a guaranteed more work than you can service.
Another thought, I see most operators in the States boast of OE parts. The vast majority of customers don’t understand nor do they care. The installation quality and service is more important.
Nearly all glass sold in Ozz is generic, if the insurance want to pay low prices then the get low quality.
We do however inform the customer of the cheap glass being installed into their vehicles. We also let them know that the insurance will ONLY pay for cheap parts; this usually upsets the customer and sparks a debate between the customer and the insurance which is good. Upset customers spread the bad news quickly.
Have any of you thought of importing glass direct from China as a group of independents? You can get glass for as little as $15US each based on volumes. Stop buying from the corporations and they will rethink their strategy.
I hear everyone complain, however nobody seems game to change. Remember the Insurances groups and the glass suppliers can’t survive without you guys.
I guess the biggest task is getting everyone to UNITE!!!
yeah its a great idea, but isn't that what the iga is supposed to be. The problem is that no one can stick together, everyone is willing to stab each other in the back for a nickle. If the legit shops stuck together and stopped buying from distributors that sell glass to bodyshops and repair shops at wholesale prices, that would be a start.
Yes it is sad I posted a while back on this when we attend seminars we all get togather when we return home it is dog eat dog, and the way things work if we all went togather and went to the insurance companies they would say "WE" are price fixing it is a double edged sword so to speak
there are ways to raise prices without discussing them. Like I said start at a place thats easy for you to control, if you buy from a distributor that sells to someone who can under cut your price by 50 60 70 dollars stop buying from them.
Unfortunately, the laws in the U.S. do not allow us the luxury of joining together and negotiating with the insurance companies.
If any 2 companies get together and discuss prices with a customer, it's a violation of the anti-trust laws.
The insurance companies have certain exemptions from these laws and they take full advantage of those exemptions
Mr. Smedley! you are absolutly RIGHT! my god if I could join forces with you here we would make a fortune. I know & believe exactly the way you think, the business mind in this part of the world has changed to blame & they have stopped looking for solutions. HEAR HEAR GOOD FELLOW! & KUDOS to you & your group I could only pray that we as PROFESSIONAL INSTALLERS could just one day stop cutting our own throats & bind together because like you said they are NOTHING WITHOUT US!
Correct me if I am wrong but isn’t the reason for the group to enable us to network?
I am merely pointing out how it is done here in Australia, you may take some ideas you may not; I am not trying to be your business advisor.
I have been reading the group for a while and I have leant much from how business is done there.
I could however be like you and pretend I know everything be sarcastic and complain day in day out about the conditions in your industry.
One of the first things I learnt in business was that, “You can’t expect a different outcome if you keep doing the same things.
If you don’t change, then do you really think you profits will???
Some things seem to be different in our countries. For example we all buy off NAGS, they are very good to us and give us great rates and service, so why are they ripping you lot off and working against you.
More insurance companies each year advertise to there customers that they can have choice of repairer. Why not in America?
Something is different; these are the same global companies. Why is it that they treat you lot one way and us another?
Perhaps it’s because they know that they can and get away with it.
you 100% correct Smedely. This kind of thing doesn't happen in other countries. Here in the US big business get all the breaks all the tax cuts and get to skirt all the laws. I know in Canada they stuck together a while ago and got better pay, don't know how they are doing now, anyone from Canada care to speak up. Why do electricians and plumbers make $50 or $60 dollars an hour??? Because thats what they all charge!!! If everyone charges 10 bucks thats what people will pay... if everyone charges $200 thats what people will pay. The glass industry supplies a service that is NEEDED when something is needed you should be able to charge a fair price and make a living, look at the freakin oil companies, one raises there price, does the other lower his....NO he raises to meet that price, and what happens next is everyone makes money, STOP lowering the **** prices. Next time you get a phone call for a price on a glass and are about to give a price add $30 or $40 bucks on to what you would normally charge, you may lose a few jobs at first but the key is work smarter not harder. Do your 5 or 6 jobs a day do them well and you will get repeat customers.
Snot,I here ya.I wish there was a way all (or at least by state majority) us smaller shops could get together and agree on the pricing situation.I look at it as being we are all in it to make money,Lets stop the ego trips to who is better,or whatever and make some money again.I know it is kind of a pipedream,but it does not have to be.
we can't get together and discuss pricing because thats illegal, but the good people at nags can, thats what a list price is for... there is no need to discount off of a list price for a one time customer, they also tell you how many labor hours to bill for, just stick to that formula. A auto repair shop or dealer will charge you 3 hours labor to do brakes when it take the mechanic 45 minuets to do them so why can't anyone in theis industry just do what every other industry does also charge separatley for addhesive don't build it in to the price and even if you use and after market universal moulding you are still paying for it so charge for it. Also look at your cost per job, count up the number of jobs done in one year then divide that by every single penny you laid out, that includes gas, payroll, insurance,rent, vehicle repairs,and even toilet paper. I am sure people you don't do this will be shocked at the actual amount it cost per job. Here is an example total expenses @ $182,605.78 Divided by 1,114 jobs done equals $164.00 per job, THATS WITHOUT THE PRICE OF GLASS.
I would put glass in for free labor and all zero cost for the customer, but the suits at these big companies would do it for free then give the customer 10 bucks just to get a job when is it going to stop. There are millions of cars out there and all of them have a windshield, one company can't do them all so just charge a fee where you can make a profit on every job. Basing a business on quanity does not work!@!! With the the price of gas going through the roof people are driving less, less driving equals less broken glass. Now your profit margin was so slim when it is was busy now what the hell are you going to do, aslo in my area a mild winter can slow business down, you can't rely on "Well if I do 5,000 replacments I will make a profit" because there are always to many variables when you structure a business on quantity alone
And guys still do mobile repairs for $25. Then they wonder why they dont make any money. Guys, this business works if you charge what you should. RAISE YOUR PRICES TO MATCH YOUR COSTS!!! The insurance prices will come along, too.
One word Smedley, "GREED" Thats why the Glass business in the USA is screwed up. as long as we have the DT's and the Safelites of the USA that will do it for free then it will always be screwed up.
You better hope they don't decide to go to the land down under mate...
Mr. Smedley; I cannot answer exactly why the U.S.A. does this, & to this industry but I personaly complain about all the whinning & moaning done by some of these glass shops. I myself could care less what work is "dispatched" to me by the insurance company's or networks( I never signed or agreed to any contract offered by them). They have me to thank for the windshields that I install to keep thier customer's happy. My company has been growing from word of mouth nothing else, we don't advertise, letter our trucks or even cut prices to match the "competitors"! I know & hear all the hardship that these company's complain about but I have yet to see them do anything to change it. I'm not sure if you read some of the other comments I posted but nobody ever replied to them or gave any sort of feed back. I personally know that it is us they need! I recomended installers to be licensed and held resposable for any & all work, then we could perhaps create this thing called a "glass trade" but I don't believe some shops are ready for this. It's nice to complain when you RELY on somebody else to give you work but what a feeling it is to create your own & know you earned it not deserved it! So perhaps you can see why to unite may be a-bit out of touch for some of these cry baby's.
Canada speaking up! I don’t know who told you we get better pay up here in Canada. We have the same problems you have in the U.S. We can’t even get a good association running. The guy who tried to start one is about to pack it in because no one will join, and yet people complain. As for price a good price on a FW 2183 among the independents is $240.00 to $310.00 except for one shop, who thinks he can corner the market at $170.00.The new boy to the industry, will install any windshield for a dealer for $169.00 and free stone chip repairs and other free services. Do we stick united? Somehow I get this pictures of everyone standing united on the deck of the Titanic.