DATE: October 23, 2006

TO: All State Farm(r) Offer and Acceptance Participating Glass Companies

State Farm(r) is committed to providing its customers with choice in the selection of a glass service provider, excellence in customer service and quality through its Offer and Acceptance Program. We appreciate your participation in meeting the glass service needs of our State Farm policyholders.

Our national glass program is intended to encourage competition among glass service providers at a fair market price. At this time, we find it necessary to adjust our Baseline Program Pricing.

Effective October 30, 2006, the Baseline Program Pricing for all contracted Offer & Acceptance Program glass companies will be revised as follows:

Market New Pricing Labor
1 -15% below NAGS $100 Flat Rate
2 +2% above NAGS $100 Flat Rate
3 +32% above NAGS $120 Flat Rate

NOTE: At this time there will not be adjustments to State Farm's pricing for auto glass repairs or labor rates and there is no change to our existing market areas.

This adjustment is consistent with our company's commitment to paying a fair price in the markets serving our customers. We believe our new pricing offers continue to be fair and competitive.

We thank you for participating in our O&A program and your willingness to service our State Farm policyholders.

State Farm Glass Claim Services





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Got mine too. I'm waiting on one from Allstate next.

i wonder why they are playing with the labor rates between markets, i am not sure but i dont remember labor being different in different markets.

thats pretty interesting that state farm lowers pricing notice comes two days after another supplier letter raising prices 3 percent.

Our costs go up and our profit margens go down. There was a time when if NAGS went up say 5% the Ins. Co.s would take 3%. Now cost goes up 3%, NAGS goes down 1-2% and insurance Co.s take 5%.
Looking for options but, not the GET OFF NETWORK option. I to want to stay around.

Could one of you fax that over to us for glassBYTEs please? 540-720-5687 Thanks.

You will probably get 200 of these, but I sent one over anyway! LOL!!

Got it. Thanks.

Well there went the last insurance company jobs we actually still had "Fair & Reasonable" rates from. Now they have joined the ranks of the lesser companies IMHO. I'm going to make figuring out how to do insurance work without being on the networks my new number one priority, this is just unbearable it's completely unfair to make doing the work off the network near impossible, then tell you as your cost go up that what they will be paying is going down. NAGS list went down on 9/11, it will go down again in November and you know we will have another price increase from vendors most likely at the beginning of next year......It's so frustrating I'm ready to the gang of 's

Insurance companies price shop constantly, and when belron and d/t woo the dealerships with the $165.oo
specials, we have no leg to stand on. Do not believe that anything other than price dictates insurance companies decision making. That is why we will forever be eaten up by the insurance carriers. Get off all networks, stop direct billing,take your message to the people and educate your customers. Most people despise insurance companies any way so it is not hard to convince them of the steering and low balling tactics taking place in our industry. Give all your crap work to d/t and belron and safelite !!

The labor rates have always varied for markets. either $120.00 or $100.00 depending on the market so that is not a change.

It's still one more company digging deeper!

I am with happy crack on this one.

Going to cash only and "on account" from now on, (giving those customers 30 days to collect from their insurance and providing them a copy of the timely payment law in this state). If my customers think I am worth the money they will be willing to pay me and collect from the insurance companies. I have had enough of this "dictating". Besides I am sick of tracking 300 price structures for all this insane price "schedules" for insurance companies. One price fits all from now on.

I if I go broke, at least I will do it fighting back.

CCC, that is exactly what I have been telling people for the last 3 or 4 years. Shops say they can't get off of the networks for fear of losing work but pricing continues to erode. If I have to go broke it will be on my terms not theirs. Shops have the power to change things. It's fear that stops them and that is just what the insurance companies are counting on.

Welcome to the club CCC!

Grass is greener here, you just have to fertilize mow and water it yourself.

As if the networks ever did it for us.

Yes fear is a factor regarding getting off networks in some areas. In high density, areas where unliscensed, uninsurred, can buy glass at same price as you, no location, (that is real) can get on network, and practices the slop & drop method with out fear of consequences DROPPING the Networks IS NOT an option. You will do no more work. Another option needs to be explored. Dropping the Networks has beeen tried. Had to go back on or wouldn't be here typing this today.
Maybe paranoid but what if the real high pressure drop the Network guys are from SGC, D/T or Belron?

sglass,As I'm sure you know, I AM NOT FOR NETWORKS, AND I CAN ASSURE YOU, I am NOT with sgc, dt belron. I am a small ma pa shop. A TRUE INDEPENDENT!!What I don't understand is how any shops can have no customers on their own. No customer base? We have been off the networks since rebalance and we are doing ok, and A bit better all the time, why???? we market to OUR CUSTOMERS,. I have to agree with happy, and ccc on this,, but for me getting off the networks has not been easy,,, but it's been the best move,,, our prices haven't declined as bad as the areas where all shops are on the networks! WORST PRICING = NETWORK SHOPS. It is that simple, where you have the most network shops you have the worst pricing,,,, but just wait by winter and by next spring,,, it will be even worse. They've said it soooo many times,, "as long as the majority are on the networks the pricing will decline"... So stay on with them,,,,, let's see how low they will push it down until the small shops are GONE!!!!!

Funny, the whole idea behind the revaluation was to put the emphisis on labor rates. A few years later and insurance companies are going back to flat rates. Does that mean that NAGS is going to go back to the old lists? Or will they remain in the insurance companies pocket?

XXX I hear you. I do agree with you about your stance on networks. I wish I was in a market area I could drop networks. In my mareket area my dropping out of the networks is like:
Taking my shop
rolling it into a ball
sticking it up a knat's butt
it would be akin to putting a B B in a box car.