In a recent blog, our friend Neil Duffy wrote about the entrepreneurial spirit and how independents must strive to maintain that spirit. I could not agree more. In this age of Super Wal-Marts and bigger is better, is bigger always in the best interests of the consuming public? When the commerce is a commodity, this concept may be acceptable. But when the commerce involves a service, it is not. Auto glass repair and replacement is a service, so the industry is certainly on the wrong track. And the consumer is surely a loser.
Competition is less, choice is stifled and public safety can be compromised. The “how low do you go?” mentality in the AGRR industry is prevalent. But any independent that has served this industry for any length of time knows better. And quality independents know that the product offered is not a commodity; rather it is a service. And many take pride in the service that they provide to their customers and the quality of glass they install.
The other day, someone posted a link to the ABC 20/20 report about the importance of proper and safe windshield installation, which originally aired many years ago, on the glassBYTEs.com™/AGRR Forum. After viewing that video, I took the time to reflect and I could not help but conclude that the macro atmosphere within the AGRR industry undermines the safe and proper installation of windshields, breeding exactly what we witness in this ABC production. Unfortunately, this report portrays the reality in our industry and I believe that the installers that were featured in this exclusive represent the majority of the laborers serving this industry rather than the minority. It is amazing how that report still portrays our industry today, some several years later. However, there are people in the industry that are working feverishly to change it for the better.
We independents are operating in an industry where the primary focus is on price, one size fits all, and when compared, an apple is the same as an orange. It doesn’t matter that the pinchweld is rusted and may require additional labor or the fact that the replacement windshield should not be installed at all. (How many of you refuse to do an install when you know that it would not be safe to do so?) It doesn’t matter that installers follow proper procedures. It doesn’t matter that the independent shop only employs certified technicians or subscribes to the AGRSS Standard. So why do we bother to go the extra mile to take care of our customers? Does it make sense? Why don’t we all become hacks, cut corners and make more profits? After all, if Hackits Auto Glass can do it, why can’t we? The answer is that many of us are true professionals and will not compromise our integrity or compromise the safety of our customers.
So put it all together, mix in all of the major issues confronting the auto glass repair and replacement industry, such as steering, unlicensed claims adjusters, improperly trained techs, pricing pressure and inferior glass and you have a recipe for disaster. The certification of technicians and a comprehensive standards program like AGRSS are definitely a step in the right direction. I believe that injuries related to improper and unsafe windshield installation, like the two included in the 20/20 report, are more common than reported. Just how did the AGRR industry, a serviced-based industry, make the transition to a commodity-based industry? And when you take into consideration that all of the major players in our industry are fully aware of the importance of the consumer safety issues at stake, these two incidents are two too many. Don’t you agree?
Friday, July 17, 2009
Thursday, July 2, 2009
Indemnification—Or Not?
You have just purchased an insurance policy, and saved 15 percent in fourteen minutes, twenty seconds. A new record beating the one previously held by a neanderthal. You leave the office and you feel great. Especially in current economic times, that 15 percent savings can be used to put gas in the tank of your late-model vehicle. After leaving the insurance agency, you enter the highway on your feel good ride home. Life is good, and your favorite tunes are blaring over your speakers. The sun is shining and you have more money in your pocket. And whack! A big stone just kicked up by the semi in front of you puts a crack in your windshield.
No problem. Your day is not totally ruined. You might be a little inconvenienced, but no worry. You have your new insurance policy and replacing the windshield is sure to be hassle free. After all, your new insurance company is known for its customer service. Pulling in the driveway, you decide to get your insurance card out of the glove box and call your new company to make the claim. You call the toll-free number on the back of the card and follow the instructions. After providing all of the claim information to the representative on the other end of the phone, you continue to advise the CSR that you want to take your car to Joe’s Auto Glass. Joe is the guy that you know that you can rely on to replace your windshield and do it right the first time.
Uh-oh, a snag. The CSR informs you that Joe’s Auto Glass is not on their “approved” list of auto glass repairers. “Joe’s isn’t what? Are you kidding me? You mean I cannot take my car to Joe? What’s with that?”
“Well, Joe doesn’t accept our rates and Joe doesn’t offer a lifetime warranty. However, I can refer you to a shop where I can assure you that the technicians do not abuse alcohol or illegal drugs. That’s right, we drug-test all of our technicians. And our shops do it for free, that’s right free!” says the CSR.
But I know I can rely on Joe. He’s been serving our community since 1945 and I have never heard of any problems with his work. He is an outstanding member of the Better Business Bureau.
I say, “No, that’s okay, I still would like to take my car to Joe. He’s the guy I want to do the work.”
The CSR replies, “You know if you do, there is a good chance that you will incur some out-of-pocket expenses?”
What? I do not believe that is what I purchased. I did not purchase “partial” insurance. You mean now I need gap insurance? I thought when I bought this policy, my car would be restored to pre-loss condition. That it would be just like it was before the stone hit the windshield. I guess I was duped. The sales rep never told me that there could be restrictions when I go to make a claim. So much for saving 15 percent. I guess it is a buyer-beware situation.
This scenario plays out everyday in every state, every city and every town. Just what are consumers buying when they purchase an automobile insurance policy? I have always known automobile insurance policies to be indemnification policies. According to Webster, to indemnify means to “secure against hurt, loss or damage.” How about diminished value? If the quality of the glass or service is based purely on price, is a policyholder assured that the vehicle is restored to pre-loss condition? I do not think so. Do you?
No problem. Your day is not totally ruined. You might be a little inconvenienced, but no worry. You have your new insurance policy and replacing the windshield is sure to be hassle free. After all, your new insurance company is known for its customer service. Pulling in the driveway, you decide to get your insurance card out of the glove box and call your new company to make the claim. You call the toll-free number on the back of the card and follow the instructions. After providing all of the claim information to the representative on the other end of the phone, you continue to advise the CSR that you want to take your car to Joe’s Auto Glass. Joe is the guy that you know that you can rely on to replace your windshield and do it right the first time.
Uh-oh, a snag. The CSR informs you that Joe’s Auto Glass is not on their “approved” list of auto glass repairers. “Joe’s isn’t what? Are you kidding me? You mean I cannot take my car to Joe? What’s with that?”
“Well, Joe doesn’t accept our rates and Joe doesn’t offer a lifetime warranty. However, I can refer you to a shop where I can assure you that the technicians do not abuse alcohol or illegal drugs. That’s right, we drug-test all of our technicians. And our shops do it for free, that’s right free!” says the CSR.
But I know I can rely on Joe. He’s been serving our community since 1945 and I have never heard of any problems with his work. He is an outstanding member of the Better Business Bureau.
I say, “No, that’s okay, I still would like to take my car to Joe. He’s the guy I want to do the work.”
The CSR replies, “You know if you do, there is a good chance that you will incur some out-of-pocket expenses?”
What? I do not believe that is what I purchased. I did not purchase “partial” insurance. You mean now I need gap insurance? I thought when I bought this policy, my car would be restored to pre-loss condition. That it would be just like it was before the stone hit the windshield. I guess I was duped. The sales rep never told me that there could be restrictions when I go to make a claim. So much for saving 15 percent. I guess it is a buyer-beware situation.
This scenario plays out everyday in every state, every city and every town. Just what are consumers buying when they purchase an automobile insurance policy? I have always known automobile insurance policies to be indemnification policies. According to Webster, to indemnify means to “secure against hurt, loss or damage.” How about diminished value? If the quality of the glass or service is based purely on price, is a policyholder assured that the vehicle is restored to pre-loss condition? I do not think so. Do you?
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