I have owned a Bar, oil lube center and a deli. Always mark up my products

Here is what I am confused with. Why in this business the insurance companies

expect you to discount a retail price?

The reason is simple. Insurance companies want to collect premiums and pay out as little as possible. I tell them what my daddy told me when I was a boy and said I wanted something. “It won’t hurt you to want.”

Very well said " ME " . In addition , they use those guys as a baseline for setting prices . Who cares if they are Felons , drug addicts , non insured , non tax paying , HACKS . In Az , we have guys that have gone to jail for vandalizing windshields to boost their sales , out competing with legitamite shops . OUT OF CONTROL !!!

The reason they get and ask for a discount is because they have the buying power.
They are the largest entity that pays for glass to be replaced.

but I bet you already knew the answer to that question.

I guess people ask and get offended by the reality because its an insurance company.
if it was a fleet company that had the buying power we wouldn't have this debate every couple months.

Insurance companies aren’t buying anything. They have the responsibility to indemnify their insureds. If the INSURED BUYS OUR SERVICES they can pay us by assigning the proceeds of their policy to us. And if we charge a fair and reasonable price, even if that means marking up the parts, the insurance company is obligated to pay us. And they do. But for those who cave in to insurance companies and sell their services at a ridiculously low price, they either realize that their services are subpar, or they don’t have the business sense to fight for a fair price. Either way they’re part of the problem.

Freddy
I disagree
the insurance industry spends over 2 billion dollars a year paying for glass replacement/repair.
if YOU spent that much money on something you also would expect the best price.

it is how business works its called buying power.

it is how Walmart sells cheap.
they use their buying power to drive prices down
from their vendors so they pass that on to their customers.

what an insurance company spends (or pays out it claims) is directly related to how much they charge for insurance.
So if we let some people be in charge and let glass companies pick what every they wanted to be charge the result would be Everyone would pay more for insurance.

Controlling costs is just good business its also smart business.

And all the insurance company CEO’s who make 3-5 million a year are going to contribute this years salaries to charity.

I charge my customers fair and reasonable prices that have ABSOLUTELY NOTHING to do with NAGS or any derivation of NAGS. When my customers request that I submit my bill to their insurance companies, I willingly do so--- direct to their insurance companies with NO INTERMEDIARIES. The insurance companies pay my bills in full because they understand FULL WELL that if they do not, I will take them to court. And here's a bulletin to the faint of heart sheep out there: I have never lost a case. NEVER. One more time--- NEVER.

"M" is absolutely correct in both of his posts. With one exception.

That is the fact that he completely ignored what Freddy had to say, which completely negates his "correctness".

M, show me one contract of repair proving an insurer has any buying power. ONE will do.

Your Walmart example does not work, Walmart IS a buyer if you want your goods on Walmart's shelves.

The insurer isn't buying anything from the glass, collision, roofing, restoration, or towing industries. They're simply acting as if they are, while skirting all liability for those choices, while tossing the repairer under the proverbial bus when things go awry.

Need examples of such? The recent Texas lawsuit for $40M against the shop. There are more, most are settled out of court, or by other means that we don't hear of, like the shop buying back the car from the insured and buying them a new one, when caught.

Nevertheless, the point is, the contract of insurance is between the insurance company and the consumer. The contract of repair is between the consumer and repairer. NEVER the two shall meet UNTIL or UNLESS the insurer invokes its right to repair under the policy contract options, and contracts WITH the repairer for the repairs to the property. This had not happened since the sixties, and it was SF that got burned for it, because when invoking the right to repair, they ALSO assume the LIABILITY for those decisions, AND repairs. They have not made that mistake since, and there are court cases citing these very principles. We ALLOW them to do what they're doing, mostly because we are ignorant and intimidated, some because of greed, and some because of RICO, but those are another discussion.

For now, research "Keep This Job" by Patrick McGuire, a early 2000's article recently, after the Texas case mentioned above, REPRINTED by one of the body shop magazines. Read it several times if you need to and LET IT SINK IN.

Then repeat after me three times, "There is NO such thing as Insurance Work", have a glass of water and two aspirin, and go back to work, "where ever" it is that you work. I'm not buying your Kool Aid. OR, you can supply me the proof that the insurer is the buyer that I asked for.

Have a nice day.

JMHNLO

What he( Mark1 ) said.

who writes the check is the buyer

Incorrect, and untrue, in this situation. Normally, I would agree. This situation is not normal, as far as a normal business relationship. There is a third wheel present in a two party contract of repair. Feel free to prove me wrong with what I asked for above.

Since you can't, that, grasshopper, is why we fail. The emperor is naked, he has no new clothes. We just consistently go with the flow and applaud him at our own expense as an industry by allowing someone to tell us to breach our primary fiduciary responsibility to the customer who is, in fact, contracting us for the repairs to the property.

JMHNLO

The only time the insurance company is the buyer is when it brings in office supplies at its ivory tower. The check in payment of a claim does NOT make the insurance company the buyer and trying to get some thickheaded glass shops owners to understand that seems to be an exercise in futility.

Good God you people are idiots
read a couple articles one says
in glass mag
"The Insurance Industry SPENDS 1.9B a year on Auto Glass claims"

this conversation is for grown ups.
The kids can toss all the rocks they want it doesn't change reality.

"claims"
or ...
CLAIMS

Wow, no kidding. Spends $X per year on auto glass CLAIMS. NOT on Auto Glass.

There's a distinct difference.

No one can supply just ONE contract of repair showing the insurer, or TPA, is contracting FOR the repairs to the property? These are folks that write contracts for a living, a business, an entire insurance industry. But no one can provide a single contract of repair for glass repair or replacement from them?

Yet, we're the idiots tossing rocks? Right. Sure.



JMHNLO

toss rocks Mark
let the grown ups talk for now
and stay seated at the kids table.

If you where right well lets just say we would never have had to write all this
because the problem wouldn't exist.

Sit down and eat your lunchable.

There are none so blind...........








Who is the Customer?

... have they bought you too

If the ins. companies are the " buyer " of glass then ...
- if the part is defective DO THEY LOSE MONEY
- if it installed incorrectly ( air leak , water leak etc.. ) DO THEY LOSE MONEY
- if the glass breaks on way do job DO THEY LOSE MONEY
- if they buy glass that has become obsolete in the market DO THEY LOSE MONEY
- if they buy a palet of glass that has factory defects DO THEY LOSE MONEY
AND ON AND ON AND ON ....

and dont try to say that you can get credit for most of those parts . Because the labor cost alone with most of those situations is enormous . Besides the time and headache that goes along with inventory . OH WAIT , THEY DONT HAVE INVENTORY !! NO GO SIT AT YOUR HIGH CHAIR AND EAT YOUR CHEERIOS !!!

oh my God Joe you are speaking about business and commerce
do you care if walmart gets in 25 defective toasters

I feel like I am in a room of middle school kids talking about business
I am so done with this forum
it is full of nothing positive

someone call the wambulance lol

thank you for proving that guys point for him
with WAmbulance ...