It has been approximately 10 years since NAGS went on the road at our industry conventions to tell us re-balancing was happening. Don't worry it will be revenue neutral.
Lets have a seminar that looks at that! Take two vehicles; a domestic and a foreign Maybe a Tahoe and a Accord. Check a windshield, door glass, back glass and then check the then and now discounts.
Just check the big insurance companies.
Farmers is now asking for 53% off Glass, Allstate is 50% off.
I turned down a job from Allstate yesterday the agent has used me for years, I turned it down because my mark up on a Range Rover windshield was 6.00 hard to believe six bucks is the profit that was allowed on this job.
THIS IS THE 100O LB GORILLA IN THE ROOM THAT OUR INDUSTRY IS NOT TALKING ABOUT!!!!
Lets wake up and at least do a comparison to before re-balance to now with the top 5 insurance carriers. I know Belron could care less about this as they sell most of the carriers at GAI guaranteed average invoice.
LETS ACCOMPLISH SOMETHING IN RENO!!!!!!
I would enjoy seeing something like this. I would also point out to you that you should work hard with your local glass association to get legislation changed to level the playing field. Those same companies you mentioned, offer pretty close to full list where I'm from. I get paid better than that still by fighting each invoice. I can't take credit for the ground gained in my state but someone before me told the insurance companies to stick it where the sun don't shine .
There really is very little to have a seminar About what has happened. In January 2005 manufacturers list and NAGS BENCHMARK were the same. Please everyone stop calling NAGS a list price. it has nothing to do with any list. Only the manufacturers have a LIST price Dealers have a mysteriously manufactured list, and of course NAGS is a super secret magic formula.
Now in Feb of 2005 The Nags benchmark was reduced by around 90%. All the insurance co's and tpa's said "do not fear for we shall be REVENUE NEUTRAL". They never said for how long. Am fam started out at nags PLUS 133% And in 3 short months cut it in half to +66 To see what sheep would take the bait. GUESS WHAT 99.9% of shops said "OK". From there systematically all Ins co's have reduced what they WANT to pay by OFFERING shops less. Remember this was not the first rebalance. The first one was in 1999 and it worked so good they cooked up another one, and it has worked perfect for price fixing.
There is only 1 cure we need smarter business people in this industry who have the professionalism and intestinal fortitude to say say no to the D-ictated R-ates U-ndermining G-lass S-hops. the industry need to quit the DRUGS. This was said from the beginning and still remains today.
Now a seminar on how to get off the drugs and detoxify, learn how to gain customers the tried and true way, how to bill, and how to collect, and bill properly, now that would be worth just about any price.
I left all networks in 2005 and am still doing GREAT! More work than I have time for, I do not discount from NAGS, because it is already discounted HUGE! discounting from a discount is not retail, it is wholesale. I am Not in wholesale. When people call wanting the cheapest I tell them straight out it's not me, I don't have time for cheap shortcutting work.
I will be retiring and selling my brick and mortar in the near future, I may need to get into consultation!
Some very valid points have been made and some will get it. Others sadly will continue down the path of self destruction. NAGS DOES NOT PUBLISH LIST PRICES. GET IT THROUGH YOUR HEADS!!!! Manufacturers have list prices. An invoice is formulaic in that you have a number of factors ie: glass, labor, urethane, moldings, mobile fees, etc. You can use any number of ways to come up with your formula, but it better result in a reasonable profit if you want to stay in business.
Go back to January 2005 and see what you were billing. If you're billing less now you're gonna continue to struggle or fail altogether. With cost of doing business factored in, most should be charging more now than in 2005. It's really pretty simple.
Instead of complaining about the b.s. philosophies used by our local schools with their insipid lunch programs, my wife packs a lunch for our kids. My point?
I ignore NAGS except for their numbering system. I could care less what they benchmark or suggest or whatever the hell you want to call it. I never bill thru TPA's. I know my costs and add a profit. If insurance companies pay short, I haul them into court and win.
Thank goodness some one had the gonads to say that!
1st off you have no Idea how my business runs. Not a ******* clue, you have no idea how I built a multi state business off MY BACK, not favors but going out there and shaking hands an kissing ass. I guarantee you , that if you dropped the both of us in ANY major city I could with out any network assistance runa a full circle around you.
People that were on board in the begining in 1999 know how much time and effort I put in. I am not superman or stroking myself but I put out quality and quanity with quality parts.
Larry
Well I got real **** to do like rest for tommorrow, you get you team on the phone and figure out how your goign to justify billing $800 for a DW1168GBN
Larry, I have read your stuff for some time. At first, I thought you were some kind of obnoxious flake. But after a while, I have come to have respect for you because you seem like a sincere and hardworking guy with gonads. Why do you subject yourself to networks, NAGS, and TPA's?
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