Here it is my one of my favorite seasons of the year, spring. With the arrival of spring, we draw closer to summer and warmer weather, outdoor activities and another NAGS price adjustment. Ah yes, the May calculator and another average decrease in the list prices contained therein. Does this finally convince us that NAGS list pricing is about as useful to the auto glass repair and replacement (AGRR) industry as an abacus is in the present-day math classroom?
Many of you may have seen my rants before about NAGS pricing. I have written many times about how discounts off the NAGS list price at 65 percent off justified the 2005 NAGS rebalancing farce. Yes, I label it a farce as we presently witness discounts approaching those same levels. Is it time for another rebalancing act? Is the NAGS standardized pricing still relevant?
NAGS list prices impact the entire industry. To some, like the insurance industry, NAGS list prices have a positive impact. Like they say how some foods go right to the behind, to insurers, NAGS price adjustments go right to the bottom line (but in this case positive). To others, like the independent glass shops, OEM manufacturers and OEM distributors, they have a negative impact. And there isn’t a one of us who should passively accept this and move on.
But most importantly, in an industry that tries to focus on consumer safety, is such a standardized pricing system counter to these goals? When insurers offer ridiculously low rates per “NAGS Hour,” this is a good indication that insurers lack confidence in the published rates and, therefore, encourage shops to cut corners. And when the profit margin on glass continues to slide, there is no question that the quality of the glass being installed in vehicles is going to slide. Therefore, I cannot help but feel that the NAGS factor in the AGRR industry puts consumers in harms way.
Let’s face it. The time for NAGS to come clean has passed. It no longer matters how they arrive at their list prices. Who audits these prices? Is it comparable to boasting that you have the best installation standards in the industry and not be willing to prove that claim with an independent third-party?
To publish information that has such a dramatic impact on an industry, especially an industry dealing directly with consumer safety, credibility must be the watch word. Independents, you must act as independents. Educate your customers and take care of them using quality glass and the best installation standards. Then price accordingly on a basis of honesty and integrity. Take care of the customer and the rest will all fall into place.
