Insurance Network Question

[desertstars]

In answer to Dave M:

Generally speaking, a "quality" used-car-lot repair is an oxymoron.


Glass_Meister.

There's a lot of meat in your stew. But, I'm still a bit confused. What precisely did you mean by "offering the service (repairs) at a Safelite location"?

Considering that you previously included yourself among the independents, is not a Safelite shop, in fact, your competition?

Secondly, if the repairs that you presently perform are a result of network claims, how is it that you are not familiar with the billing procedures? If you are a "certified continous education instructor for the insurance industry" it would seem to me imperative that would be a necessary requirement.

"If anyone out here is involved in replacment, you know the networks and NAGS system are destroying the independant shops."

Huh, huh. You bet.

This post is not meant to be argumentative or accusatory. I'm just confused.

I fully understand your attempt to supplement your primary function by adding on repair as an adjunct. That's just good business sense. But, to those of us whose primary vocation is "saving" windshields with all of the environmental benefits attendant to that concept, we have a different philosophical approach. We prefer to think we are the dog wagging the tail rather than the tail being wagged by the dog.

At times, such as this, the different points of view tend to lead to confusion as to motives.

So, Tom, pardon me for my paranoia.

And, I'll be more than happy to discuss the letters with you. Just email me for further info. I promote direct-billing with bull feet.

Jim

[Ridge Runner]

desertstars, In your response to glass meister: paranoia; I think not. Another bullseye. I'm having a lot of trouble with the statement "Sometimes we are requested to do a mobile repair and that really is not cost effective for us. However I have looked at offering the service at a satellite location in the attempt to draw more attention to our replacement capabilities." If I'm wrong,I'm sorry,but this almost sounds like "bait & switch". Jim

[desertstars]

That's pretty much what it sounded like to me, also, Ridge Runner.

Strangely enough, we are dealing again with a subject that I was told was taboo by a moderator because of my beating a dead horse and almost caused me to simply withdraw from this forum recently and yet knew was a subject that would again eventually rear it's ugly head.

I can be one plain-talking, obnoxious SOB when it comes right down to it.

But, I always assume that I need further input before I come to conclusions based on insufficient data.

Glass_Meister may in fact be totally candid with his questions and I cast no aspersions.

I embraced this business years ago when very few people including insurance companies and agents and even many of the present suppliers were distantly aware of the alternative of repair vis a vis replacement.

I helped build the repair business with my own sweat and efforts when this business was laughed at.

And, I vehemently resent the present attempt by the replacement controlled networks and the IGA to take charge of our industry as much as a cobbler would resent intrusions by a shoe manufacturer.

They have absolutely nothing to do with us except for the fact that we are a threat to their bottom line.

They have NEVER been our allies and now have emerged as the enemy.

The youngsters in this business have no idea that they need not shovel their invoices through the competitively controlled, replacement-oriented networks and the veterans aren't giving them enough information to educate them as to how to do circumvent that ever-increasing strangle-hold.

I don't question Glass_Meister's motives here.

But, I do wonder about the bait and switch tactics so prevalent in this present atmosphere when not so long ago we were considered something to be shrugged off like the previously mentioned mouse.

It's beginning to look like our competition is recognizing that we pose a threat and their answer is to take us under their wing.

Desertstars does not intend to be adopted.

This is not a flame response to Glass_Meister.

It is, however, an honest and genuine response to anyone who considers the repair business as nothing less or more than a replacement entree.

Language

[Ridge Runner]

desertstars, Glad you chose to continue contributing rather than withdraw from the forum!

[glass_meister]

....I did not imagine I would ignite a firestorm here.

Listen fellas, I have the utmost respect for repair technicians. I once did it myself to put food on the table. If I had the opportunity, I would do it again. Better quality of life.

Ridge runner did see the mistake. It was "satellite" and not Safelite.

I too also see the headaches with the networks both in the installation and repair protion of this business. That is the reason I asked the question about the letters. Just because I stated that I am an instructor covering insurance issues, does not mean I am in bed with the networks. It is just the opposite.

The glass industry is trying to educate the independent agents out there about the liablility issues they face concerning replacement and policy holder retention issues. If an agent just leaves it up to their network to "pick" their replacement facility (knowing that some are not as reputable as others), they could be facing risks that they are unaware of. As you well know - the agents understand risk minimization. It affects their bottom line.

We are in a rural area. When we get a call for a "mobile" repair, it may be a 30 mile drive to do that $49.00 repair. You do the math - tech makes his wage, the vehicle and the gas to go that 30 miles and then back again....and whala - it is not cost effective. As a manager - I have to look at what we are doing to meet our goals. Thus the rethinking of what we are doing on repairs. Do I set up several satellite locations with techs at a car wash or at a busy intersection? Or do I euip my sales force that are currently calling on auto glass replacement customers with a kit and train them?

You may call it bait and switch or whatever, I call it time management.

The last few posts were a little disturbing. I was hoping to gain an understanding of how you guys handle the requirements of networks out in the field. I have better understanding now...., but a little disappointed that you have taken pot shots rather than recognize the opportunity to gain some insight that I may have on the other side of the fence.

I am still willing to assist someone if needed, but please do not call my character and motivation into question.

Tom

[Delta Kits]

The last few posts were a little disturbing

I agree Glass_Meister. Thanks for sticking around and clarifying your points.

Let's keep this forum respectful to all.

Anyone want to help with some answers to the original questions?

Thank you

[StarQuest]

Delta Kits,

Your right in trying to keep this post respectful and friendly. I guess what created my suspicious opinion with Glass_Miesters post was this statement!

[/quote]Presently, the repairs that we do are as a result of a network claim. Sometimes we are requested to do a mobile repair and that really is not cost effective for us. However, I have looked at offering the service at a satellite location in the attempt to draw more attention to our replacement capabilities. That is what prompted the question about the storefront issue. [/quote]

I may be wrong but doesn't this statement alone seem to predict the outcome of his real intentions? He doesn't seem interested in bringing up the numbers for his company in repairs! He's trying to promote his companies glass replacement profits through a repair satelilite operation. This is exactly what happens in my area with Harmon Glass and Safelite repair only mobile services. If it's anything other then a bullseye repair, they tell the consumer it needs to be replaced. "Bate and switch" This is when all of us repair people get our hairs up with this practice! In all fairness to Tom Howard, this may not be his true intention but it sure comes across that way! I for one believe, if Tom submitted his questions in the Windshield Repair forum we might have been less hostile in our reactions and comments, clearly knowing his intent to increase glass replacemnt numbers.

My suggestion to Tom is....forget about wasting your management time or money on setting up a satellite location for referrals. Align your company with one or two professional repair independents and have them help you get replacement jobs. You might be suprized by the results!







[/quote]

[StarQuest]

Correction....I meant if Tom presented his questions in "Windshield Replacement Forum"

[DaveC]

We are in a rural area. When we get a call for a "mobile" repair, it may be a 30 mile drive to do that $49.00 repair. You do the math - tech makes his wage, the vehicle and the gas to go that 30 miles and then back again....and whala - it is not cost effective. As a manager - I have to look at what we are doing to meet our goals. Thus the rethinking of what we are doing on repairs. Do I set up several satellite locations with techs at a car wash or at a busy intersection? Or do I euip my sales force that are currently calling on auto glass replacement customers with a kit and train them?

Not taking sides in this issue as for intentions and motives.

Let's crunch some numbers

Assume 1 Technician @ $15.00/hr?

Dispatch this tech, in a rural area, 30 miles away.

Safe to assume a total round-trip/repair time of two hours?

So, direct controllables are:
2 hours labor@ $15.00 = $30.00
Fuel = $ $5.00
Cost of repair materials = $1.00

So, for a direct cash outlay of approximately $36.00, the gross profit, on a "$49.00" repair would only be $13.00 (about a 30% markup).

Now, assume (for tax purposes) that the company is expensing the vehicle by mileage at a mere 35 cents per mile. 60 X .35 = $21.00.

After tax costs is now $18.00, with a gross profit of $31.00 on the $49.00 repair.

THis is much more than a 200% markup if my math is even close to correct.

With the avbility to write-off mileage, all things are equal, whether the customer shows up at a shop or they are serviced at their remote location. Right?

[Delta Kits]

I may be wrong but doesn't this statement alone seem to predict the outcome of his real intentions?

Yes it does. There are two ways to look at it though. You can be cynical and think, well, he's just trying to set this up so he can steer them all to replacement. Or, you can take him at his word, and believe that he will do all repairs he can, but invariably there will be those that stop by that need a replacement, and this will add to his replacement income as well.

I don't think he has given us any reason to doubt his honesty.