In a recent discussion on this board HAL asked all of us what we would think is truly "fair and reasonable". I believe he asked if paying you the same as a guy in New your city would be fair?

Sadly for all of you, I have been thinking about this. HAL, I believe, is arguing that paying you the same as the shop in New York City is not "fair and reasonable" because his COGS is considerably less and he does more volume than a rural shop, therefore HAL does not want to pay the NYC shop the same as you or vice versa.

But I argue that HAL (of course you take it for all the ins. co. my friend) is already using a faulty system that is by no means "fair and reasonable". If HAL wants a system that is truly "fair and reasonable" why would he use a system that uses a blanket discount taken from a faulty list price(NAGS) that is in no way representative of any glass companies true COGS either in NYC or Salem Oregon? I will not even get into NET or 'r' parts crisis. 5% to 20% markup on a part? Or $6 over your cost on a $400 part? Truly a crisis.

I may not be thinking correctly, but wouldn't a system based on your ACTUAL cost with an industry standard MARKUP be more "fair and reasonable"? Wouldn't a system that used each shops cost plus markup on parts, then a regional labor rate (which can be compared to body shops, mechanics, etc.)be more reflective of the actual cost of doing business? This might even end the entire NET PARTS crisis!

Now HAL(ins. co. in general) will most likely be against a system like this. He would have little means to audit your cost, creating more work and headache on his part even if you had to prove your cost with a fax; thus the reliance on NAGS by the insurance industry(it makes it easy and efficient for them). And many shops would also be resistant to such a system. Having to disclose your cost to anyone is a touchy subject with many business owners, but having to disclose your cost to HAL's TPA that is your direct competitor would be a deal breaker for most.

Just some thoughts...

... luckily, I think we can all see where the ins. co. are going. They want OUT of the glass business and frankly, HURRY UP AND GET OUT !!!
Let me perform the work for my true customer the policyholder. Let the policyholder decide what I am worth. Stop making me call my direct competitor to get "permission" to do the work, hand over my customers "confidential" information to them, and (the newest one) provide my competitor with my bank information and access to those accounts or suffer a monetary penalty if I do not. Let these 'giants' compete on a "fair" playing field and we will see who comes out on top. If they do, then so be it the best company won, but I like my odds!

HAL, you and some in the insurance industry have been very good about working with us, but sadly, I look forward to the day when we never have to talk about anything autoglass related. But I am always up for a good wager on that 18th hole.

Well Said

Isn't "Fair and Reasonable" a communist/socialist idea? In a "free market" prices are supposed to be set by the people selling the product or service. I think I will impose a salary cap on Hal, Hal please forward me your location so I can gather the average salary of people in your area and adjust your paycheck accordingly.

Thanks in advance for you attention
Rich

Sglass I couldn't agree more with your agreement with CCC, let the insurance companies get out of the auto glass business. That would be a happy day