Over the last couple of months, I have been an active participant on the glassBYTEs.com™/AGRR magazine forum and it has been an eye opener, to say the least. I have come to the realization that there are a lot of diverse views about the AGRR industry, and on many issues it will be best if we agree to disagree.
One topic about which I’m passionate is the subject of third-party administrators (TPAs) and the damage that their presence has done to our industry and the ability of each and every one of us to compete on a level playing field. I cannot tell you how many message board participants have suggested that many independent glass shops are failing because they are not using the proper business model; that they should disregard the presence of the networks and “work around” them. Then there are some that use the recurring theme “Who is the Customer?” and insist that they are in complete control of their customers. I have been told that I exert too much emphasis on the TPAs and have been labeled as stupid, uninformed and even naïve. Thus far, the criticisms have not pierced my skin and having had the opportunity to be a player in this industry for the past ten years, I do not believe that they ever will. What currently is going on in our industry may be the exception, but it must not remain the rule. I think that the majority of us believe that what is going on is anti-competitive and wrong. And, in my opinion, it certainly cannot be free speech.
While I continue to read on and reply, what troubles me is that there are shop owners that believe their businesses operate exclusive of TPA influence. And, to them I say, “nonsense.” There is no business model out there that is not impacted by the TPA presence in our industry. I do not care if your business is running on a purely cash basis. As long as your customers have insurance policies with the glass addendum, you are affected, one way or another. Although the insurance influence may only happen on occasion, you are not in total—let me reiterate: total—control of your business. If it only affects one customer, I argue, it affects your business.
Let me expand on this thought. Let’s assume that you do not bill insurance companies directly and are trying to operate a purely cash business and the phone rings. On the other end of the line, you hear, “I have a customer on the line that would like to use your shop.” How many of these types of calls have you received? This is a potential customer whose business is in jeopardy, and should not be.
My posts have been met with legal-based challenges, referring to court cases around this great land of ours. I have even witnessed the defense of actions by third-party administrators in the name of free speech. I have been challenged because I may not have read all these court cases. While I take every comment under consideration, I cannot help myself in thinking that we all know what is taking place in the auto glass repair and replacement industry is not fair.
The third-party administration model that affects each and every one of our businesses, in some respects dramatically, has transformed our industry. As shops operating in this industry, we no longer compete on our merits. Businesses have failed and are struggling, perhaps due to no fault of their own. Our services are treated like a commodity and it does not matter what kind of glass we install or the procedures adhered to by our techs. And even in the commodity world there are differences in the price that is charged; consider a store brand versus a national brand.
To everyone associated with this industry and maybe even fighting for survival, I say, fight on. Justice will ultimately prevail. Forums like the glassBYTEs/AGRR Forum give each and every one of us the opportunity to discuss issues that we all confront on a daily basis. And these discussion boards can offer a valuable source for technical assistance. They can serve a good purpose and I can offer that the discussions here truly invigorate me. How about you?
