First off, should there be a price differance in cash vs. insurance? Absolutely!!!
Cash
A cash customer calls my shop gives us their info, we price the job (most times higher than the major insurers will pay) set the appointment. They bring their vehicle, we do the job, they pay us and leave. Whole process, with cure time, 2 hours 15 minutes.

TPA/Insurer
Advertise to customer to have them steered away.
Customer calls and wants to use their insurance. Talk them into the shop before calling insurance/TPA so you can control the job. Complete the job.
Explain to customer how TPA will smear your shop. Call the TPA, put customer on phone. Answer customers questions on how stupid the TPA's questions and answers are. EDI invoice. Get rejected invoice. Re-EDI. Get 2nd rejected invoice. Get paid 45 days later. Have shop evaluted behind their back. Have TPA send email asking about their experience to your customer. Taking credit for the positive experience with shop, not TPA. Whole process, up to 45 days or more!

This is for replacement, repair is whole other experience!

Paul,

After removing your sarcasm, I agree with your analysis. The costs a shop incurs dealing with the TPA's process has costs that should properly billed. The most overlooked costs are associated with the TPA claims processing exceptions. We have documented total process times of well over 30 minuets if you include hold time and I haven't included the associated possibilities of a so called adjusters inspection. How about the customers claim coverage that couldn't be verified requiring a return visit?

Cheap cash price drives down insurance price because Insurance shops cash market and feels it should get glass the cheapest because of their buying power.
So by giving the cash customer a cheaper deal than insurance that drives down what insurance will pay.

That my friend is a bigger issue in the glass industry than S L.

U R truely the ignorant 1 if U really believe that my friend.

I know it's true from first hand experience with insurance pricing

I agree with ......
I work for an insurance company we actually call glass shops across the Country.
We survey prices available to the general public.
Then we use those figures to develope our % off nags in what we will pay on a glass claim.
If you think an Insurance company will pay the average retail price with the buying power they have?
...well lets say you owe the guy you called ignorant an apology.

Hi Ray, welcome to the forum.

In order to get an apology from me, (no I'm not the one that posted that to which you referred), you'll have to show me how the insurance company you work for is contracting for repairs to the car, under your options contained within the insurance contract. This will include notification to your insured of the option of indemnification you are choosing under the policy, required by most state bad faith claims acts.

At that point, you will have my sincere apoligies for the comment I am about to make.

You (your company) are not the purchaser of any auto glass, you are not contracting for repairs to the car under your options of the insurance contract, because you know that will drag you into the liability for the repairs to the car up to your collective eyeballs. And therefore, by default the TPA you hire cannot be contracting for repairs to the vehicle with shops, IN or OUT of any "network" of providers.

Finally, sir, you have NO BUYING POWER, because there is NO such thing as INSURANCE WORK, unless you consider insurance work to mean the work we must go through to get paid the money due under your indemnification contract you made with the consumer, who hired us to repair the car.

If that is, in fact, what you meant, then you should also understand why there is a difference (albeit admittedly more that some charge) in the price between cash and insurance "work". Same as if we accept personal checks, MC or VISA, or chickens, cash warrants and deserves a lower price.

Not that it's any of your business how WE choose to conduct business, until or unless you (your company) chooses to contract for the repairs to the consumer's property, on behalf of the consumer, through your options under the insurance contract, with the repair facility.

Oh, and one other thing, don't think for a second that ALL of us are ignorant enough not to understand the difference between "what you will pay" and "what you owe under the policy", and why you choose those words carefully.

Have a nice day.

JMHNLO

It's about time someone got to the RIGHT ANSWER! Well done Mark1 and very well put. And by the way our cash pricing is higher than what most insurance companies WANT to pay. They need those record profits you know!

Cash pricing has allot lower expenses and costs to consider.

Total agreement, they have no buying power because they are not buying glass or services, they are only a form of payment, and have no right or standing to tell anyone what they can charge, or dictate payment.

Hey Ray, are you one of those guys that keeps calling my shop and asking for a cash price because, "you don't have insurance"? On a 2012 model? Really? And why won't you give me your real name and phone number? Could it be because you've been less than truthful with me? That would explain why you argue with me after I tell you the price, which is the same as what I bill insurance work.

If I'm part of a Network & the TPA is going to charge the Ins. Co. a set price no matter what I charge, WHY would I lower my price? Cash customers get a better deal because they pay on the spot, no TPA between us & the $$$ they pay is the price with no one else's hand in my pocket. (except Uncle Sam of course) Plus there is no TPA telling my customer to call them first, next time they have a breakage.

Just trying to explain how the system works to help you understand where and why price gets lower.

Here is further proof, did you know that no where else in the world does the cash customer get a better price than insurance companies. This only occurs in the US where we give a retail cash customer the best price.
You only need to do your home work about this and see how the US auto glass industry pricing philosophy is self defeating .

Getting mad at someone who tells you the truth seems to be how industry issues are dealt with here.

If you are trying to defend Bel/Safe here, of course they have to quote same price both ways. If Ins. Comp. found out they were charging less to their cash customers, they would probably cancell all contracts. so get off the righteous box & sit down.

Ray,

I asked you a relatively simple question, and you respond with "that's the way it is, YOU guys do it this way, no one else in the world does, and we're just having a temper fit"?

No temper here, just facts. I challenge you to prove me wrong, not just tell me it's the way it is. Which does not justify your interference in our business in any legal fashion.

How about the answers to my question, instead of side stepping rhetoric?

Oh, and BTW, I could care less how the rest of the world operates. I don't live there, and their laws don't apply here, but thanks.

JMHNLO

Dear Ray,
It should work both ways. Do the insurance companies that use Bel/Safe realize that their customers that don't have comp coverage or decide not to file a claim get hosed by Safel1te for cash jobs? Their customers get funneled to Safel1te and then get suckered into paying 2 to 2.5 times the going rate for repairs! What a deal....
If you don't believe me, just go to a Safel1te website and get a quote for a cash repair.

Ray:
Do you think that when you call and pretend you are going to pay cash that I can't tell you are actually working on a "report" for your company? How honest is it to pretend to be a customer when you aren't? You are a big part of the problem. Mark is right, you are not contracting for the repairs, you are not my customer, and you couldn't care less about quality. Which is why you never ask about the products or methods to be used. Next time you call my shop be honest and identify who you are and what you're doing. And to those who give Ray a low cash price I ask why? Do you ever track how many of those jobs you actually capture?

Here is another shocker. Some TPAs have their drones call and pretend to have several rental units that need windshields. They ask for a special deal, and then use the results to put together a "fair and reasonable" report. But it's anything but fair and reasonable.

No one around here has Cash Prices Equal or higher than the TPA's... Sorry But I didn't read every post however, Even most of the software I have seen other companies use are set up in 3 tiers. Cash, Insurance and Body Shop for example.... Pretty sure the ones arguing are not installing for their big body shop/car lot accounts for what they bill to Insurance and COD accounts.
Put it this way, If I quoted Cash prices for what the TPA's pay, I would be sitting at home watching TV all day.. The TPA's know this and I have said many times... I cant wait till it is all equal and or the TPA's discount themselves into extinction... I Welcome this day because it will level the field and I will continue to clobber Goliath!!!!!

i doubt you will find a company with 1 tier pricing. TPA's don't either.

Howz this for an answer?

The ins co TELLS me what I must charge

The cash customer ASKS me what the price will be.....this leave room to negotiate!

Had a customer tell me he was price shopping and could I beat the lowest price he had got. I said if I worked like those people I could. He aske HOW do they work? I told him; they cheated the last customer so they can pass the savings on to you. So what do you think they will do to the next customer?

If you can't make money on 1, why on would you want to do a hundred???
Makes no sence what-so ever.

As someone once told me, "so you could go out of business faster".
Ooops...