Just the other day, I was reflecting on the auto glass repair and replacement (AGRR) industry, especially focusing on several issues that I believe to be unfair trade practices. I began my career in this industry in the year 2000 and it did not take me too long to realize that something was amiss. Actually, it was the first NAGS calculator in May 2000 and the stream of faxes that followed with insurance pricing revisions that encouraged me to get involved. I remember taking the faxes into the shop owner’s office and asking him what the deal was. Within days I was in our local state legislators’ offices educating them about the practices within the industry and I haven’t rested since.
That was ten years ago and things have gotten progressively worse. I continue to ask myself, “why?” But instead of offering my perspective, I would like you to contemplate the following. Imagine that the earth was recently visited by aliens and, one day, an alien reporter from the Saturn Sun Times, who also happened to be green, entered your shop looking for a story on your business and industry. He had heard that the practices in the industry were out of this world but had to hear straight from the earthling’s mouth. So he began the interview and asked the following questions.
Why do glass shop owners run their businesses according to the demands of insurers and their third-party administrators? Why do shop owners price the products and services that they provide in accordance with a standardized parts and pricing schemes? Do they do this purely to accommodate insurance billing? Is there something unique about your industry that makes it much different than any other? And why do shops have to accommodate third-party billing? Does serving a customer who happens to be paying for those services with an insurance claim require that shop owners must relinquish their rights to a third party? Who has liability in the event that a tragedy occurs because of your negligence?
What are networks? What are the advantages of being a network shop? Why are non-network shops expected to follow network rules? Why do non-network shops succumb to the likes of signature audits or allow unlicensed claims adjusters onto their property to do the inspection of a damaged windshield? Why do third-party administrators fight anti-steering legislation if they are not using coercive tactics and operating within the law?
I can continue, but I think you will agree that our alien friend is a pretty inquisitive fellow. I, for one, would be very interested in reading the alien’s article after publication to learn his perspective. But I think we can conclude that after learning about the AGRR industry in the United States, the entrepreneurs on his planet will not be green with envy.
No comments:
Post a Comment