How much is an insurance replacement worth??

[ikonglass]

I recently started my own repair company and I am going to make a huge effort to direct replacement customers to a shop that will take care of them. My questoion is this... What is the average ins. payout on a replacement vs. cost to replace it. ie materials and labor . I understand that it varies depending on the type of vehicle, but i am just interested in the overall average. The reason being is that In the past when I worked for someone doing repairs, the technicians that I managed probably turned down over 80 valuable replacement customers a month simply because the co i worked for was not smart enough to have set up a refferal program.

I spoke with an individual that had set up a vary lucrative refferal program with an install company, where he set up the claim and the appointment for the install (leaving a 4 hour window) then called the install company with the ref # and customer info. All that the install company had to do was show up and install. I am wondering If you had no marketing cost and just had to show up and install, roughly how much margin is left (on average) and how much you would pay per deal if someone could get you over 900 installs a year on top of what you are already doing... Right now I just dont want the liability and overhead involved with doing replacements. maybe in the future though I just want to know theoretically what dollar amount you could pay someone bringing in that type of volume while still making a profit for yourself, before I approach these install companies with this proposition...

Thanks so much guys...

[ikonglass]

thanks for the overwhelming helpful response!!!

[Brent Deines]

Unfortunately the replacement forum on this board is not very active, and most replacement shops that frequently check this windshield replacement forum also offer repair.

Personally I think 10% of total replacement cost is fair to both parties. A $250 replacement nets you $25, a $500 replacement nets you $50, etc. I also think that you need to find a replacement shop that does not offer repair as an option to their customers to minimize the conflict of interest and allow you to also accept referrals from them with the same agreement. 10% of a $50 repair nets the replacement shop a $5 referral fee, etc. Having owned a windshield repair only business, and later a windshield replacement business I can tell you I feel this is a fair arrangement for both parties. Of course that is just MHO.

Almost every auto glass replacement shop in our area also offers windshield repair, but that is not the case in all areas, especially on the East coast. There is a certain amount of trust involved in such arrangements, so be sure you know who you are working with and set up a program to track referrals.

[Glasseye]

ikonglass,
rather than screw your head with average prices, cost prices, etc. just select 2 or 3 replacement only companies and open up negotiations with them.That way you will get a feel of the type of money/reward sytem they are prepared to offer and at the same time get a feel for which one will make the better partnership, look long term, and don't forget, it is what they can provide for you as well.