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Just received the email that service auto glass is will call only in San Antonio. And they are imposing a $25.00 fee on all returns, Great way to grow you business. show your customers just how much you value them.
Two different divisions with different management and they have a large investment in infrastructure tied up. Why not work to make it profitable. I am not a fan of Safelite, but I have seen other glass companies that are both retail and wholesale that did well with business models. Just wondering why they are pulling back.
Its easy to figure out, there numbers are on decline and to try to help pull those numbers back up is to eliminate some of there competitors. By not delivering to competitors in outlining areas they put those people in a bind. The number of warehouse employees will also be cut in time and money saved as a result, in the end it wont help because Safelite as a whole is in decline.
No big loss here. Service is the last resort for buying any auto glass parts or supplies. The prices are so bad (typically $30 to $50 more then other suppliers). It's only a matter of time before they will not do wholesale (if that's what you want to call it), and just worry about safelite and safelite only. Which is pretty much the case now.
or maybe...they decided that the majority of service customers only bought because of price or inventory breadth and a giant part of their sales were theoretically in competition with their core business....and maybe they looked at the investment necessary to maintain deliveries and with the aid of their new "partner"/minority investor, decided the capital outlay to maintain the service wasn't a good way to spend cash, as with any PE, the short term cash focus is more important than the long game share builder/expense eater. so maybe they are taking a bullet today and giving other suppliers a windfall under the misguided, but plausible assumption that this move will leverage their superior (it is) inventory for their core business (it wont) and translate wholesale share into retail share (will translate to 1 of 20 jobs at best)....but it won't work that way in the long run...because you can't corner the market on product and, like always, they probably underestimate the determination of those that the think they will gain share from....so I guess it is a short term way to leverage existing capital spend and lower cash requirements to paint a prettier picture for whomever comes into the "family" of investors next.....or maybe not....they are smart people, I'm sure there is a plan that makes more sense than the "going broke" narrative - so the rest of us will just keep finding ways to kick their ass one job at a time and not really worry about it.