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As if there is any question who NAGS represents..

Our costs have increased a minimum of 5% across the board. There is no arguing against that fact. Yet, the new NAGS pricing has an increase of less than 1%. Maybe we should just set up vending machines and let the customer pay what they want to pay. Get NAGS and the insurance cos out of our business'.

Re: As if there is any question who NAGS represents..

I have difficulty understanding how NAGS can go up less than 1%, when we have experienced:

- across the board 3% increases
- fuel surcharges (which are getting larger)

Unless more and more companies are moving to lower end brands, skewing the prices down.

NAGS does not account for the quality of the parts that are being installed. If more companies use the low end low cost parts, then NAGS will report a decrease in glass cost.

And the companies that are focused on quality and service take it in the shorts.

I wonder if NAGS takes into account the fuel surcharges. I would guess they do not, since that is not part of each item's cost, it is a delivery surcharge. But we have to pay it.....

Re: As if there is any question who NAGS represents..

You can't add 3% to the list price NAGS issues. Our 3% went to the cost we pay for glass. On a $65 part three percent is $1.95 a $200.00 list price is $2.00

Re: As if there is any question who NAGS represents..

george,

thanks for the dose of reality. haha

nags would love to say well we did what they wanted, we gave them a 3 percent raise on list. that would be a media bonanza for NAGS, to make them look like the good guys.

i guess that is why we should be careful what we ask for, we might get it.

thanks for waking me up.

Re: As if there is any question who NAGS represents..

At the IGA conference in Las Vegas, I spoke at length with Bud Oliver, the guy at NAGS who figures out the NAGS benchmark prices.

According to him, this is how it is done:

They collect cost information from various shops around the country. These shops send him actual prices from the wholesalers for specific parts purchased over the past X number of months.

They take all those prices and figure out an average cost for each part.

Then, they take those costs and run them through some formula to come up with the Benchmark. The formula is somehow accounting for the difference between the wholesale cost and the retail price. (He would not disclose anything about this formula).

So, if our costs went up 3%, then the Benchmark should also go up 3%, as long as their formula is consistent.

Either their formula is not consistent or more companies are buying crappy cheap glass or both.

Re: As if there is any question who NAGS represents..

3rd scenario-some distributors may not have gone up a full 3%, or some customers are not being charged it. When people start showing what they pay to others, it's never a good thing!

Re: As if there is any question who NAGS represents..

John, that makes absolutely no sense in regard to NAGS list. First of all I cant believe any company is stupid enough to provide their cost basis to another company, much less one that wields so much power to hold against you. Secondly, wouldnt the morons in these companies notice the advantage in inflating their cost reporting, thus increasing their insurance revenue?
I know what most of the big boys are paying for glass, and believe me nobody is paying less for glass than they were 5 years ago, and if they are it is infinitesimal. NAGS list has absolutely no basis in our aquisition costs and anybody telling you different is lying. Maybe we need to sue to find out exactly what these jokers are using to derive the "benchmark".

Re: As if there is any question who NAGS represents..

I mostly blame PPG, to be honest. PPG is the first one that decided not to use NAGS as the basis for their pricing when the rebalance occured. Yet, they continue to "buy" glass replacement service from shops using the NAGS list through Lynx Services, GNGS, and CEI.

I definitely agree that due to the 3% price increase from the suppliers and manufacturers, glass shops should be compensated with a 3% NAGS list price increase. However, the rising costs due to fuel, insurance, technician wages, etc. for glass shops should be reflected in the labor rate reimbursed by customers. If those costs were reflected in the NAGS list, it would be inconsistent, as it is not within the scope of the NAGS rebalance.

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