Insurance referrals

[tooldini]

I am not doing windshield replacements at the time but am wondering what should I expect as far as insurance referrals per week if I were to learn and get into lynx and harmon networks. Any ideas I have been doing repair for 5+ years and feel this may be the next step.

[StarQuest]

tooldini,

Nobody I know right now is getting many replacement referrals from insurance TPA's. I personally have tried providing mobile replacement with fleets and insureds two years ago but didn't have much success. Couldn't offer competitive pricing against Safelite/Belron, DT, or Harmon/Glass Doctors company's.

If your in a rural area without these competitors, it might work out for you! Have to remember though, glass repair and replacement are two different animals. Be prepared to spend some money getting into replacement.

[tooldini]

Yeah I was not really excited about trying it but my wife keeps wanting me to. I would consider looking more into it if I knew I could get many referrals thru the networks. What is the profit margin on a normal replacement? Would it be worth it to have someone that is already certified with equipment to do the work and you just take a small cut?

[ChipChick]

I work in a glass shop (replace is our main source of business) and I would never depend on your jobs coming from the networks. You're much better off to spend some of your time hitting the agents (or hiring a fireball rep to do it for you) and ask them to refer business to you. That is where we get most of our insurance jobs. Anymore tho, with such high deductibles, list prices going down and price shopping by those cash customers, profits are not super great.

We are in a metro area, so we are an A shop, if you're in a rural area and could be a C or D shop, you might get more referrels and a higher profit margin.

Hiring a tech would probably not be a great way to break into the business IMO... workmans comp, fica, insurance etc etc. Your expenses would be so high just to get your foot in the door.

I would suggest OJT. Get a job with safelite for 6 months and let the train YOU how to do auto.

Having said all that, really, if you're in a big city, it's going to be hard for you to compete with the big guys.

There's a glass shop close to my home (I commute) that does locksmithing too, I have always thought that was a good combination. I once paid a guy $40 to unlock my door, took him 15 seconds and he said he learned to do it in a weekend.

I'd find something to partner with my business that has a much lower barrier to entry than replacement!

[tooldini]

thanks chipchick and starquest you guys talked me out of it. Well actually it was mostly my wife wanting more income. I had a feeling it would be like what you have both said. I guess some add ons to repair would be best for me than replacement. thanks again

Jeff

[ajaybutler]

I Would Suggest Talking To Windshield Repair Companies. We Do Repairs Not Replacements, And There Are Times The We Cannot Repair A Windshield. So Work Out An Referal Situations With A Repair Company. $25 Finders Fee Or Something, Send Some Business Their Way In The Same Fashion. It Will Create A Got Business Relationship.

[tooldini]

I have tried that twice but seemed to never pan out. I got hooked up with Diamond Triumph autoglass to send referrals to them and all five I sent them in 1 week were not of enough money to warrant my $20 walmart card LOL They told me they needed to be like 350.00 or more. That was a bunch of crap so I stopped sending them work. Another shop in my town kept saying that they never did the replacement so I stopped sending them referrals also.

[StarQuest]

I have tried that twice but seemed to never pan out. I got hooked up with Diamond Triumph autoglass to send referrals to them and all five I sent them in 1 week were not of enough money to warrant my $20 walmart card LOL They told me they needed to be like 350.00 or more. That was a bunch of crap so I stopped sending them work. Another shop in my town kept saying that they never did the replacement so I stopped sending them referrals also.

Jeff,

I've run into the same situation here in Michigan. I've tried to work out a few cash referral programs in the past only to be disappointed with the results.

The problem here is that for many glass shops to survive in our state today, they either have to fully waive a insureds replacement deductible or highly discount it, which leaves very little profit left to pay you a decent fee. What I do now is to work on referral credits. I don't look for cash up front but do hold them to a trade in services. Could be a free glass replacement when seldom needed or a fair exchange for other services they provide. (i.e., window tint, remote starters, vehicle detailing ect.....).

Now...for those of you fortunate few that live in a "zero" glass deductible state. (mainly down south) you shouldn't have any problems getting $40-$50 per referral.

[tooldini]

Yeah maybe that would be something to try. thanks man