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Allstate's OEM Discount Demand

Has anyone successfully fought and won this asinine attempt by Allstate and SS to dictate OEM billing practices?

I hate dealing with networks and this kind of bullying by insurers. Most of us can't buy glass much over 20% off list. High volume in many places helps but the point being: Why would any intelligent shop give up half of their part profit to make Mr Good Hands in Our Pocket happy?

SS agreed to extend this policy when they took the contract away from Lynx. They can afford to due to their national buying power and whatever side deals they have with Allstate.

I understand the direct billing crowd. I'd love to if my customers weren't so timid but what infuriates me the most is to see installation services agree to and actually seek Allstate's work. Any Japanese auto manufacturer has stratospheric glass prices but it makes no sense whatsoever to buy and install a $1500 windshield and give away half your parts profit. The liability on install, future warranty and even transporting that glass is immense and to willfully expose oneself even more in giving a discount is just plain ignorant and foolhardy. If you paid $1200 for that glass, it's still $1200

If this industry had some backbone (********* as well) we would not be in this type of predicament that has been eroding away our own ability to make a reasonable return by accepting this type of heavy handed discount demands. After all, I certainly am not setting OEM pricing. The auto manufacturer does and its dealer network.
I'd love to see glass shops say enough is enough and stop this and other practices that suck sustaining profits out of out pockets so that Mr Big can retain more of theirs

Re: Allstate's OEM Discount Demand

I stopped doing o.e. installs for all state the day they went with this policy. The only way it will change is if no one will do these jobs that simple.

Re: Allstate's OEM Discount Demand

I've passed as well but who suffers? Allstate doesn't. Going aftermarket is no cure-all with it's quality track record. Allstate is doing this to body shops as well where several parts may be OE and others not. AGR is a single part industry where there is no where to hide or offset that type of discount legally.

Re: Allstate's OEM Discount Demand

I don't understand. Why turn down a job, and why let someone dictate what you can charge? We bill OEM at our formula regardless of the list price. Why should it cost less than using aftermarket? We litigate every short pay and never lose when we've used OEM. The only customer involvement is a signature on your assignment of proceeds so timidity isn't a problem.

The solution is NOT turning down work. It's billing a reasonable price and collecting the full amount. Once shops do that things will change. There will always be shops willing to work for nothing, but our customers want our service and quality, and they realize there's a price involved to doing it right.

Re: Allstate's OEM Discount Demand

Opus
Has anyone successfully fought and won this asinine attempt by Allstate and SS to dictate OEM billing practices?

I hate dealing with networks and this kind of bullying by insurers. Most of us can't buy glass much over 20% off list. High volume in many places helps but the point being: Why would any intelligent shop give up half of their part profit to make Mr Good Hands in Our Pocket happy?

SS agreed to extend this policy when they took the contract away from Lynx. They can afford to due to their national buying power and whatever side deals they have with Allstate.

I understand the direct billing crowd. I'd love to if my customers weren't so timid but what infuriates me the most is to see installation services agree to and actually seek Allstate's work. Any Japanese auto manufacturer has stratospheric glass prices but it makes no sense whatsoever to buy and install a $1500 windshield and give away half your parts profit. The liability on install, future warranty and even transporting that glass is immense and to willfully expose oneself even more in giving a discount is just plain ignorant and foolhardy. If you paid $1200 for that glass, it's still $1200

If this industry had some backbone (********* as well) we would not be in this type of predicament that has been eroding away our own ability to make a reasonable return by accepting this type of heavy handed discount demands. After all, I certainly am not setting OEM pricing. The auto manufacturer does and its dealer network.
I'd love to see glass shops say enough is enough and stop this and other practices that suck sustaining profits out of out pockets so that Mr Big can retain more of theirs


Here is my opinion on Dealer Parts, other than I hate the fact that I have to wait to get a part I do not mind them anymore. The reason is, on a good % of OEM parts, Service is stocking them and I am buying cheaper than what my cost is from a dealer. With that being said I like the fact that it is not some BS labor rate like back in the day. So if I am doing some PITA lexus that wants a dealer part, no big deal when I am making all that money on the labor. I am not in the business of selling glass, I am I the business of installing glass, and providing a service.

Now with that being said, the 2 people that I deal with allow me to make 20% on parts that are OEM , but they are flat rate labor :( now those 2 I wish to never see a dealer part again..

Re: Allstate's OEM Discount Demand

Larry
Opus
Has anyone successfully fought and won this asinine attempt by Allstate and SS to dictate OEM billing practices?

I hate dealing with networks and this kind of bullying by insurers. Most of us can't buy glass much over 20% off list. High volume in many places helps but the point being: Why would any intelligent shop give up half of their part profit to make Mr Good Hands in Our Pocket happy?

SS agreed to extend this policy when they took the contract away from Lynx. They can afford to due to their national buying power and whatever side deals they have with Allstate.

I understand the direct billing crowd. I'd love to if my customers weren't so timid but what infuriates me the most is to see installation services agree to and actually seek Allstate's work. Any Japanese auto manufacturer has stratospheric glass prices but it makes no sense whatsoever to buy and install a $1500 windshield and give away half your parts profit. The liability on install, future warranty and even transporting that glass is immense and to willfully expose oneself even more in giving a discount is just plain ignorant and foolhardy. If you paid $1200 for that glass, it's still $1200

If this industry had some backbone (********* as well) we would not be in this type of predicament that has been eroding away our own ability to make a reasonable return by accepting this type of heavy handed discount demands. After all, I certainly am not setting OEM pricing. The auto manufacturer does and its dealer network.
I'd love to see glass shops say enough is enough and stop this and other practices that suck sustaining profits out of out pockets so that Mr Big can retain more of theirs


Here is my opinion on Dealer Parts, other than I hate the fact that I have to wait to get a part I do not mind them anymore. The reason is, on a good % of OEM parts, Service is stocking them and I am buying cheaper than what my cost is from a dealer. With that being said I like the fact that it is not some BS labor rate like back in the day. So if I am doing some PITA lexus that wants a dealer part, no big deal when I am making all that money on the labor. I am not in the business of selling glass, I am I the business of installing glass, and providing a service.

Now with that being said, the 2 people that I deal with allow me to make 20% on parts that are OEM , but they are flat rate labor :( now those 2 I wish to never see a dealer part again..




WOW Larry's Statement speaks VOLUMES about the Hack and whack mentality that is killing this industry. Larry again you prove just how bad your lack of business sense hurts everyone.

First you buy and help the very ones who want to see you FOLD up! This proves your focus is on the immediate, get the glass, whatever,and slop it in who cares. Some of us look to the future and know giving into the very entity killing the small shops is not in our best interest to invest our money in. Then buying cheaper must be your goal. WHY? so you can sell cheaper, and further diminish the industry. Some of us do NOT try to buy cheaper to sell cheaper. Some of us don't mind paying more for quality and good service. And we SELL FOR MORE.

WOW NEXT STATEMENT YOU ARE NOT SELLING GLASS! Now that says HUGE VOLUMES! And you are making all that money on labor. WOW You must be charging HUGE for labor because you don't care and you give away the glass. AMAZING! I AM IN THE GLASS BUSINESS AND I SELL GLASS! Most all of us are in the business of installing glass but anyone with a brain know they are also SELLING GLASS. 20% on part is what WHOLESALE GETS retail you have no clue, and I rest my case .... sorry Larry but you are an idiot! And you are a HUGE part of the problems in this once great industry.

Re: Allstate's OEM Discount Demand

I am just going to say this, when we result to name calling this conversation is over.



Re: Allstate's OEM Discount Demand

Sorry Larry I have to call it like it is, But your statements are the stupidest I have heard in a long **** time!

I would love to see your ads...... Free w/s's I only charge to install! WOW!!!!

I could show you a better plan. Sell glass and services you will start to comprehend how to run a profitable business. You are a real JEM..... Opps name calling again. Can't help it how do I make a proper reference to you without giving you some kind of name?????? Hmmmmm.

Re: Allstate's OEM Discount Demand

Larry you are a real rare individual.'''' Better? have a snickers you are not yourself at times....

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