Windshield Repair vs Windshield Replacement

Post your windshield repair tips, questions, advice! Note there is a sub-forum specifically for business development questions.
kentcrossfit
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Windshield Repair vs Windshield Replacement

Post by kentcrossfit »

I was speaking to a owner of an auto shop, and he said that most people that come to them for damage to their windshield just want to get the entire thing replaced. The owner must watch a lot of shark tank (he even mentioned it) he wanted 20% per invoice that I did. Considering this would be my first contract I don't think that would really be a bad deal. However, he kept saying "why would I tell them to get a repair and make 15% (which is what I initially negotiated for) when I could make $60 off a windshield replacement? I told him about breaking the factory seal, and the environmental impact, but he was strictly looking at it from a monetary perspective. How do I defend against this? I told him "well if I was a customer and I found out that it could have been repaired instead of paying for a new windshield, rather than just doing a $50 repair I would be quite upset." He kept saying "they love how clear a new windshield is." I thought that was really a dumb response, because all you have to do is a thorough cleaning of the glass and it would be clear again unless there were chips. He was just really steam rolling all of my rebuttals, and not listening to anything I was saying, or wanting to hear anything. Anyways, I want some things verified.

When a customer gets their windshield replaced does it raise their rate?

Also, when a customer gets their windshield replaced do they have to pay the deductible?

In general what are all of the benefits to doing a repair rather than a replacement? Both monetary benefits and non monetary benefits.

In the end I walked out with a 20% per invoice at his shop and said, "well I'm going to go around to the other shops and see what the other 'sharks' will offer ;)" His shop literally has three other auto shops that are right next to each other. If I can get all of the others to agree to a 10-15% per invoice I think I would have some negotiating power.

I didn't intend on making a deal, but I was getting my oil changed and started to inquiry about it.

Another side-note, his volume didn't look that impressive. He may be doing 40 - 60 cars a day MAX. So I would need to contract those neighboring businesses to really make it worth not seeking out another location.
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Re: Windshield Repair vs Windshield Replacement

Post by Glasseye »

Before you make a pitch for a sale, you have to put yourself in their ( the customer ) shoes. This autoshop owner will only have to pick up a phone to earn his money, so from his point of view whoever pays the best, gets the work. So you have to consider how you would make your pitch attractive to him. Encouraging him to advise his customers to have their glass repaired when they come in for other work would make sense to him. You would be helping him to increase his earnings/profits with no initial outlay, at the same time helping him to offer an improved service to his customers. His customers would feel better because they would be avoiding the risk of a new windshield having to be fitted at some point in the future. So everyone is a winner and that is an argument that would make sense to him.
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Re: Windshield Repair vs Windshield Replacement

Post by Mr Bill »

He thinks only of profit.
Pretty soon he will learn how to do repairs , after watching you do them.
Then you will be history.
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Re: Windshield Repair vs Windshield Replacement

Post by t4k »

Mr Bill wrote:He thinks only of profit.
Pretty soon he will learn how to do repairs , after watching you do them.
Then you will be history.
So true, Mr. Bill !!
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Re: Windshield Repair vs Windshield Replacement

Post by screenman »

With customers like that you are buying work, I would suggest you stay away from them, find customers who appreciate the fact that every time you do a repair they see it as saving money.
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Re: Windshield Repair vs Windshield Replacement

Post by kentcrossfit »

Yea, he kept telling me he has a kit and he can do repairs himself (he has a college education from the same college I am attending so he is a smart cookie). However, he doesn't seem like he really has the time. I honestly, would only go to that shop as a last resort, if I needed to pay rent on my apartment and no other places were accepting my offer (which I can't see happening). Also, if he is confident in his repair abilities I don't see why he wouldn't do the repairs himself, but at the same time he seemed very busy, and he personally handled every customer. I would definitely hit that point in the sale. The fact that he just doesn't have the time to handle them. At the same time I find it an integrity issue when it comes to him just letting his customers get their windshield replaced rather than repairing it. Because most people that come in and automatically ask for a new windshield probably don't know it can be repaired.

Negotiating with him was not a normal negotiation. I felt that if I would have really told him what I thought such as, "you letting your customers just go get a new windshield is a problem with you and your company. You should be informing them that they can get it repaired so they don't have to break the factory seal. If I was a customer and I found out that you, as an industry expert, didn't tell me about my options, and just referred me to the way that you could make the most money I would be pissed as hell." I mean if I really wanted to give it to him that's what I would have said. Once I get a couple places that have made offers I certainly wouldn't put up with that, and I would tell him exactly what I thought. However, right now I'm the low man on the totem pole just trying to make enough money to make it through summer.

Also, I would do everything I could to not let him see me doing repairs. If he asks me any questions I would just respond with, "that's proprietary information." Done, end of discussion. If he wants to figure out how to fix a leg that is being stubborn he can spend his own time on practice glass. If he wants to let me go that's fine with me because I will have already contacted 12 other companies that are willing to have me there.

I think the key is to guard your secrets, and have other options readily available so you don't feel as though they are your only way of making money. I have many irons in the fire that I'm just waiting to take out once I get my shirts. I refuse to be trapped, and if they make me feel trapped I'll go elsewhere and they can do it themselves. I think increasing their net divisional profits by 1k for doing nothing is a pretty damn good deal. So if he wants to sacrifice that for some pride that's fine by me.

Also, I would make him sign a contract of 1 year. So that solves the "making me history" part. If during one year he decides to learn how to do repairs, good for him. Because he certainly isn't getting any information from me. I will make it VERY clear that I do not work for him. I am working WITH him. So he's not going to be telling me what to do. Being from a military background I won't have any problem putting him on a level playing field, and if he doesn't like it (as I've said before) he can do it himself.
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Re: Windshield Repair vs Windshield Replacement

Post by Frank EU »

and if he doesn't like it (as I've said before) he can do it himself.
Just wondering .... how many repairs a day he performs himself right now?
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Re: Windshield Repair vs Windshield Replacement

Post by kentcrossfit »

Frank EU wrote:
and if he doesn't like it (as I've said before) he can do it himself.
Just wondering .... how many repairs a day he performs himself right now?
None from what I understand. He just gets them to replace the windshield all together.
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Re: Windshield Repair vs Windshield Replacement

Post by EMCAutoGlass »

It's hard to believe there are that many people out there who don't know that a windshield chip is repairable, and then get a replacement at the advice of an automotive mechanic. Kind of baffling. This is a pricey idea, but see if there are any billboards available near the auto shops and put an advertisement up for windshield repair. Customers will certainly question the unnecessary replacements. You can also see if any local shops, oil change stations, or tire companies will let you put out some brochures or flyers in the waiting areas. I haven't tried it yet, but I may give it a shot. Worst case, you can meet the owner/manager/employees and hand out some business cards.

If you haven't worked out a deal with a local glass shop to send referrals for replacements, I would recommend working up a deal. When I first started, I found quite a few "repairs" that weren't close to repairable and I didn't make a dime. I also get a call or two per week for replacements. So, I contacted a local glass replacement shop, met the owner, and he was very easy to work with. I just text him the make/model/year/glass to be replaced, he texts me his price, and I mark it up about 10% or so, then give him the customer's information to set up an appointment. It's not much money for me, but an extra $100-$200 per month is pretty nice for doing almost nothing. Also better than sending people to other glass shops and getting nothing for it.
Good luck!
-Marty
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Re: Windshield Repair vs Windshield Replacement

Post by GlassStarz »

Why bother with someone who obviously has better things to do than deal with you? Can't be the only customer in your area? You will get very little from mechanics.
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