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That ridiculous post was intended to get some feedback from independent shop owners. What scares me is that of the 337 readers to date only 4 responded negatively.
Every time NAGS make a price adjustment the Insurance companies take a bigger discount. We are getting closer to that scenario every quarter. The only difference is we will be doing them mobile too.
If you are not a member of your local glass assoc. now, seek them out and join. Attend the meetings. You can learn more in a ½ hour over 1 beer before or after the meeting then at all the conventions around the country. If the independents don’t start getting together and talking we are all doomed. Independent shop secrets are only kept from other independent shop owners.
Independents are all allies. Talk to each other. SGC net and all TPAs know your market area, your buying power and your profit margin. It’s to their benefit independent shop owners keep secrets from each other.
IGNORANCE IS NOT BLISS…. ITS DISASTER.
.....and taking every network contract tossed at them, and now seeking to expand the flat glass side of the biz to offset the poor performance everyone is seeing in autoglass, presumably to reduce their dependence on the autoglass side of the biz.
Understood Nate, but I'm not sure that was an appropriate time for a sales pitch.
BTW, You never did answer that other question from a while back....who are the investors behind Riverside Group?
I, too, would want to know who I was jumping into bed with.
Repeat business, word of mouth...and when service writers and body shop estimators get fired or quit to work elsewhere they call us right away from their new place. We do not spend a nickel advertising.
Glasssgod, I was speaking of the industry as a whole, generally. Numbers are down, some larger players are reaching desperation, IMHO, despite Hal's (and other insurers) opinion of Safelite. Chasing numbers for the sake of numbers will be the downfall of many, unless they realize it before it's too late.
DL's post(s) echoed my sentiments about Belron's strategy, to that issue. Their attempt won't be as lame as PPG's was at national branding, I'll bet.
Sorry John, I wish I could, and had it myself. Many I speak to admit to the numbers, but not publicly, for obvious reasons. One well established Metro area owner, on all the networks and programs, admitted to me a few months ago that he was down 40% on units and was going to have to lay off if things didn't change. Said in his 45 years, he'd never seen it this bad. His account was the worst....and I noted that big players in his area had both closed stores and left, so I wondered if things had improved for him, at least unit-wise.
Needless to say, the cracks are beginning to show in the current system. Reminds me of the picture on the movie poster for 'Alien'. Blinding light beaming out of a dark, cracking egg.
Again, IMHO, I think many are beginning to realize that they have been chasing a bankrupt business model right over the edge of a cliff.
Thanks Nate, but the only millions I'm interested in are the ones that were spent on Dwyer Group, and who put them up.
To the point: Who owns Glass Doctor, exactly?
Please don't say "individuals that invested in the franchises", I just would want to know who is holding the reigns on the corporate decision makers before considering buying a franchise, that's all. And enough for this topic in this string, I'm sure many will think.
Mark, not everything is a consipracy. The Riverside Company owns 35+ other companies, none of them having to do with glass, insurance etc...
There are over 75 industries that have embraced franchising as a business model. Why should glass be any different?
Is it a consipracy that Home Depot bought ChemDry, the largest carpet cleaning franchise in the country on Jan 9th? They are diversifying into home services and wanted to start in way that overcame their challenge with providing quality service at the local level. They chose an independently, locally owned franchise model. When they begin to buy up other service related franchise companies, will that be seen as continued diversification and smart business, or some kind of conspiracy? The Dwyer Group has leveraged the same customer in multiple industries... plumbing, electrical, glass, appliance repair etc...
That's not a conspiracy, that's smart business.
I never said go join a franchise. I don't even know if you could qualify for one. Since we only have one franchisee in a given area, I'm not even sure we could discuss anything with you. I'm hoping we do have one in your area, because that's the only thing I can think of that might explain why you have so quickly written off something you haven't even studied.
You spend $75 out of every $100 retail dollars on franchised or branded national companies, but when it comes to the one industry you are in... it's bad business?
Covey wrote that we should "seek first to understand".
i understand the franchise model, across america, all business the average profit is 10%, from a study years ago.
now a franchise only takes about 7% for a franchise fee, and 3 percent for national advertising.
sounds like a franchise works great to me, for the franchise owner, who makes his own business more profitable every time he uses somebody elses money to open another franchise.
i think you might be right, mark might not qualify to be a franchise, his ethics a slightly above the franchise follow the herd way of life. some of us are just to hard headed to let a franchise make our decisions, maybe. if you can make it work for you i am happy for you.
I don't understand how GlassGod's company doesn't spend a nickel on advertising with the big growth sales he proclaims? Glassgod is your company that new to see such growth gains? If it is that new, how did you get your name out without marketing it? if it is not a new company you must have had another shop in your area go under and receive part of their lost business. NOT PICKING ON YOU but I am interested in your business plan. In my shop we spend on the dreaded yellow book ads, radio, ink pens, scratch pads, local school sponsorship programs, etc... My shop is an established shop and we still show growth but not at the rate you claim. care to share info?
Perhaps Nate can share what the franchise fee is (10%?) straight out of the account.....
In an industry where, in most cases, 15% is considered very good performance. Hmmm.
As far the shot at Mark, I can only say that a franchise is much more attractive to someone that cannot build their own brand, else why pay someone else to rent theirs? Mark has a strong brand and therefore doesn't feel the need to pay someone else to use theirs. I don't think that sounds like a conspiracy.
I'm not entirely sure about the GD business model, but the last time I checked "full service" includes brick and mortar. Is that a requirement for GD franchisees? (Houses don't count). Just curious
I believe it boils down to this: business owners don't buy franchise rights for entire states and convert businesses doing $7 million + a year for no reason. Why do major corporations license the rights to our brands to entire countries? They are all sharp, and have incredible brands and systems as well. SO why do they do it? Not many businesses can handle an extra drain of a royalty and an advertising fee(which is not 10%). Assuming nothing else changes in a business, I agree, it does not make sense to make that move. So why do they do it?
ALL that I am suggesting is simply investigate and learn that reason, not decide whether or not to actually go out and do it.
I also want to say that I have great respect for all of those we work with whether plumbers, havc, electricians, remodelers etc.. You guys are all out to provide a better quality of life for your families and the people you employ. Our strategy here at the Dwyer Group is simple... if we can help you hit your personal and financial goals using our systems, then the byproduct is that we build our brands.
I have a double degree in Management and Statistics from Baylor University and a Master's Degree in Business from Texas Christian University. I have been a franchise consultant for over ten years helping hundreds of people solve problems in their businesses. They see me differently only because they got to know me before they judged me.
Its all good. I wish the oil companies would read this forum and some of them would be "complicit in price erosion." All the stations around here have switched to where you have to pre-pay before you can pump. What a pain in the **** that is. I've had to switch from drinking Guiness and Sam Adams to Milwaukees Best! Talk about a wicked hang-over. Oy-vay.
Ahh..Nathan you silver tongued devil. It’s the educated elite like your self who have infiltrated this industry. You devise plans to shuffle papers and take the money out of the pockets of the uneducated slobs who do the work and run the companies.
My plans have not changed. Last year, in the "20 Leaders Under 40" issue of Glass Magazine, I said that I was going to open my own franchise. Look it up. Between my wife and I, we have our school loans paid down to about $71k otherwise I would be there already. My baby girl is 7 weeks old and that cost has slowed us down also. I love my job and am truly blessed to be where I am and I am thankful that I find my value in Christ because you guys are killing me.
I have been transparent in everything I post and about who I am. I have posted about our forms of marketing, diversification, pricing differences, Belron theories etc...