Sometimes, after almost three years, it gets difficult to come up with topics to write about on a weekly basis. I’ll admit there have been times when I can be found rooting around looking for subject matter late in a weekend. Other times, a theme appears like an apparition on a moonless night, enticing me forward. Thankfully, AGRR magazine or glassBYTEs.com™ provides me with enough material to prevent me from completely going blank. So it goes this time.
Did you see the glassBYTEs headline announcing D’leteren (Belron’s owner) had a 17 percent gain in auto glass-related jobs in the first half of 2010? A secondary headline proclaimed the company’s entry into the Russian market. As you may remember, earlier this year, Belron bought into the fledgling Chinese installation market where it is assumed that they were looking to become a presence and hopefully a force as both countries mature into an auto buying and driving public.
I fear there are too many of us here in the United States that dismiss Belron as a foreign interloper that is destined to fail. That attitude represents the highest form of denial. If anyone looks at the company’s overall international presence, there is not a single auto glass company that is remotely close to Belron’s size and power. As the company marches around the globe, it has constructed business models that have had success in practically every country entered.
That has certainly been the case here in the United States where the term “united” is the last word used in describing the players and operators that make up the American auto glass market.
It was somewhat fortuitous that Belron was able to gain significant market share and broad national coverage by the timely purchase of our previously two largest installation company’s assets. Belron also has added specific pieces through acquisition. The company gains by absorbing certain rivals.
Belron was smart by choosing the most profitable market available—the insurance sector. No doubt, the company’s success in the States has been tied to the existence and efforts of Safelite Solutions, the company’s third-party administrator and what most independents consider the “golden funnel” for new business. This has given Belron the means and impetus to really concentrate on infrastructure that will provide the financial roots for long-term prosperity. At this point, even if ownership of third-party glass administrators was denied to companies that have a financial interest in replacement, Belron-Safelite (at this point through its marketing efforts) could sustain itself while making adjustments.
On a worldwide basis, the company commands respect and ultra-competitive pricing from any vendor seeking to do business with it since no other customer can buy in such volume internationally. Added to that, the company has the means to staunch any effort of aspiring rivals to truly grow and compete with it. In so many words, Belron is not going away. The “ostrich head in the sand” attitude is a most foolish line of thinking for anyone to take.
For independents, the existence of Belron has forced us to become more efficient and creative in our efforts for success. I know of several companies in various markets that feel and proven that they are a viable solution to corporate glass. McDonald’s sells millions of burgers a day worldwide, but can anyone truthfully admit that the company provides a gourmet experience? The same can apply to auto glass. Provide your customer with a personal touch and a memorable professional installation and it becomes very possible to have success against a much larger competitor.
What I wish for is that Belron act as a positive force within this industry, meaning that it can demand or command certain behaviors. An interview in the latest issue of AGRR with Gary Lubner saddens me because it appears he side-stepped a question concerning glass quality. He talks about the process inside Belron to protect the technician from getting sub-standard glass but he says that he “doesn’t see it (poor glass quality) as an increasing trend.”
I know Mr. Lubner knows good glass. His family made it. I was a customer of Mr. Lubner’s family’s first enterprise—Safevue glass manufactured in South Africa and sold via his family’s distribution company, Solaglas, when it came to the States in the 1980s. It was a well-made product as was Arva, a Finnish brand that the company also distributed. I cannot remember any consistent complaints.
Today is a different story. I would politely argue with Mr. Lubner’s assessment that glass quality has not changed. I strongly believe that we are being “cheapened to death” and that we as both vendors and consumers are the worse for it. I feel that this is one situation where a company of his buying power could affect positive change if it demanded it.
The other area that I believe Belron could affect change throughout the industry is by promoting good installation practices through its commercials It could negatively affect the numerous charlatans and hacks that beset this industry by showing the public what a “good” installation” should be. However, you must consider that the more the public perceives us as unprofessional, the more that benefits Belron as a reliable brand. Such is the power of TV.
We as independents may not appreciate or like the power that our nation’s largest retailer projects. Still, we have in our own hands the ability to succeed or to choose areas that we face smaller and less able competitors. Belron may seem invincible, but it is not. Large corporations may wield many weapons, but usually cannot respond quickly to individual needs. Indies can. It is said that “all politics are local” and that very same principle applies to sales. Make the customer feel appreciated and sell yourself as a neighbor. Heck, it works for State Farm.
