The Changing Landscape or the Auto Glass Replacement Industry

Since the inception of the TPA’s and networks, the cry from the Independent Glass Shops is, “How do I compete”? In the past, the response has been – Market, Market and Market. But in today’s glass industry, what do you market? You can’t market price, you can’t market your shop to insurance agents, so what do you do?

Take control of YOUR market with the NGE Glass Replacement Program.

In the past several years, shops have almost eliminated any marketing efforts to industry segments due to the consumer’s shopping habits and increased competition. When deductibles were low or non-existent, the consumer went to a shop because of convenience or brand. When premiums became too high and deductibles increased, they now shopped for price. The NGE Glass Replacement Contract (GRC) programs have eliminated this. The “free” replacement now allows the consumer the ability to shop for quality, safety and reputation rather than price.

The NGE GRC programs are designed to create a profit center for all the entities that sell the programs. With shops all vying for the same jobs, there is nothing on the market to differentiate one shop from another other than price. Remove that from the equation, and now a shop has a reason to endorse and sell the GRC programs – the differentiator. This becomes the selling point and the reason to join a family of associated businesses.

Customer loyalty as well as branding goes hand in hand. Regardless of what we as an industry think about the consumer, by taking price out of the replacement equation, quality and service rise to the surface. Because of the compensation rates shops are being offered through the TPAs, shops who do accept the work must reduce their overhead in order to stay in business, or reject the work. With the compensation rates through the GRC programs, shops can now go back to their core business and maintain their original quality standards providing the value add to the consumer. When price is of no concern to the consumer, quality and customer service take center stage.

By your shop selling the GRC programs, that customer will more than likely come to your shop for a replacement. What happens if you market and sell the GRC plan to a municipality or some other fleet? Those windshield replacements come back to your shop. The municipality or fleet was sold on the fact that they can budget their windshield replacements for the YEAR, not on the probability of replacements. They also bought into the program because YOU sold your shop’s quality, customer service and responsiveness – control is back in our hands.

Are you already working with an Auto Body Shop that utilizes your shop for their installs? Body shops are faced with the same compensation rates from the TPA’s and have little or no room to negotiate prices, but they are still approached by the consumer “to do something with my deductible”. Body shops who do not do their own glass installs have indicated to the NGE that our program is a perfect “giveaway”. The price of a GRC is certainly less than covering the customer’s deductible and the customer walks away with something of value – a free windshield replacement through your shop. Now is the time to market your shop and the GRC program to the Body Shops in your area.

Marketing
And what about the Insurance agents? With all the insurance companies advertising about the consumer saving money on their rates, this eliminates any possibility of getting a replacement windshield without the consumer paying for the replacement out of pocket. The most aggressive agents are the independents. They are in the business to make money just like everyone else. But what do they have that will drive more business to them? The GRC program allows them to have a differentiator, an offering that no other insurance agent can compete with. If you already have a relationship with the agent, talk to them about the GRC program, and remember, you have the relationship with the agent and that replacement work comes back to you. You end up having another sales person on your team touting your shop and your replacement work.

Now it behooves the shop to market the NGE GRC programs to industry segments such as Insurance Agencies, Auto Dealerships, Body Shops, Commercial Fleets and Municipalities. Every vehicle that now has a GRC connected to it belongs to that shop thus increasing market share and full control of their local market.

New Shop Recruitment

Profitability is increased in a number of ways.

The first increase is through the sale of the contract resulting in a commission.
Secondly, every contract on a vehicle that is sold through the shop now belongs to that shop. The customer will automatically go back to the originating shop for their replacement.
Third, the shop is compensated at a higher rate than through an insurance claim.
Fourth, the compensation is made to the shop within five (5) business days
And lastly, any contract sold by the shop’s partners automatically belongs to them as well.

Call or e-mail the National Glass Exchange today and become part of the glass replacement industry revolution.

site designed by Kromatiks Graphics