Driving home from a Labor Day event, I was struck with the fact that the travel part of summer had passed and I had from a business standpoint missed it.
It’s the sign of the times. Much of my client base is auto dealer-based. In the past, warranty issues along with service customer purchases have formed the largest segment of my clientele. Manufacturers have to sell cars to service them and even manufacturers like Toyota are only acquiring market share by attrition—not by large increases in sales. With the dip in personal spending, people are first checking with their auto insurers first before ordering dealer glass and are finding that limits and choices are being placed on many of them.
I spent five hours in a social setting this weekend with a noted California cardiologist and during that time I asked him how he viewed managed care and medical insurers. His answer: Despite the political and economic strength of the American Medical Association, it pales against what insurers have. From being told what fees are “fair and reasonable,” slow reimbursement and the rising cost and selectivity of malpractice insurance, practicing medicine have gotten much harder over his career and he was thankful that he was close to retirement despite the fact that he loves his work. My reply to him was I would still gladly trade professions with him.
Another reason for what is happening to me is increased competition. In California, there exists a huge aftermarket of unregulated and unlicensed auto glass installation firms. Distributors eagerly sell to this segment and in some cases some shops are buying offshore glass direct, some even without DOT numbers, only to re-sell to others. Pricing and installation quality is drastically low with minimal repercussions coming from ignorant consumers or regulating governmental agencies. Used car dealers or leasing firms take to these companies like dogs to food. Since I have billed these companies traditionally on a cost-plus basis, it’s just very disturbing to be told that I have been raping and pillaging long time customers based on comparison pricing from these so- called “businesses.”
Some people opine that Americans are taking a “wait-and-see” attitude with the presidential elections. It could be more like “electile dysfunction” with voters unlikely to be aroused by the choices presented to us. I read a column in Newsweek by Robert Samuelson that said that next year’s deficit is projected to be $389 billion. Even if capital gains reform was enacted and Iraq expenditures were reduced significantly (both unlikely), we would still not be halfway there to a balanced budget. I can’t see how tax reform and healthcare initiatives can be enacted under such spending limitations.
The hot air generated by political rhetoric is probably not responsible for global warming or in fact another busy hurricane season. I sincerely hope that my fellow tradesmen and Americans that live along the Gulf and Atlantic are spared further dislocations based on these storms.
Before closing I have to note Belron’s sales report, which was printed on glassBYTEs before the holiday start. It seems the company is growing by leaps and bounds. They use the term “organic” meaning that the increase of most sales is not related to acquisition. I wonder if they have an internal word for steered sales. Perhaps they call them “reclaimed?”
I do appreciate how most corporations use the term “pre-tax.” According to a New York Times report, more than 95 percent of companies pay no American corporate tax. It’s us little guys who pay the bulk of corporate taxes under the subchapter S corporation.
The term “Buy American” is getting harder and harder each and every day. Just ask the guys who drinks Bud Light. For both glass and beer it may now be “Buy Belgium.” Lucky us!
