Let me suggest one word that the American public wants to hear this year and it would be wise for us in the retail auto glass industry to include it in every conversation with any potential customer of ours. That five-letter word is value.
Corporate America already is trying to send consumers the same message. Allstate Insurance and Sprint are just of the companies that have unveiled TV ad campaigns that attempt to convince shoppers that their products and services give value in these darkening economic times. Allstate even alludes to its origin coming amid the Great Depression in 1931. By inference, who better is qualified to handle one’s insurance needs than a company who started and prospered at the nation’s economic nadir?
According to CNN, there were only two companies on the N.Y. Stock Exchange that ended as winners in 2008. They were Wal-Mart and McDonalds. When you hear those two names, what do you think of? May I suggest low prices and value? It certainly appears that the American consumer and investor who maintained a relationship with these two companies benefited economically.
One of the great misconceptions that the American public has been guilty of is that low price in every buying situation deserves the strongest consideration. Here is where reality and perception have caused a huge division in consumer purchasing habits and how it has affected the auto glass industry. The simple fact is that all auto glass is NOT alike, as in any peripheral product that may be used in said installation along with the very large factor of human craftsmanship. In more succinct terms: “You get what you pay for.” is the more realistic outcome. I will maintain that this is where our own pricing battle will be fought and the question of avoiding retail Armageddon will sol ely be up to us. We have to stress value in our product and how that will benefit our customers. That means educating the public whom we come in contact with of what makes us a better value than every other glass shop that they may call.
One first has to attack the public misconception that all windshields and tempered glasses are of the same quality and should be priced accordingly. The simple fact is that there are brands out there; OE, OEE and pure aftermarket that are simply better than others. Instead of keeping your opinions to yourself, express them to your customers. Tell them why you use certain brands because you have had good experiences with fit, finish, acuity and even long-term integrity prospects. If those choices in glass manufacture cost more, give your customers the power of making decisions on their own. I have in many cases established a two-tiered pricing system that incorporates a cheaper imported brand of glass and one that in my opinion that is of higher quality. I have found allowing the customer to even make a choice in moulding purchases whether from an OE or aftermarket source has helped as well to solidify consumer confidence in using my shop. Using this model more people select let’s say, a Carlite brand for a Ford install, than an Asian generic and pay the difference in cost.
The second hurdle to overcome is trying to explain the human factor of installation. Some of us are professional; others should not be allowed to operate a power window in a car. It is my opinion it is best to stress the positives you have to offer and not the negatives of your competition. If you live in a metropolitan area as I do, that becomes more of a test every day. I simply see far more amateurish, incomplete and dangerous installs these days than I ever have before. Still it is an observation of mine that people have had such low expectations in craftsmanship and service brought on by these big box corporate stores that by going the extra mile in helping a customer, even just a potential one, you add value to your own quote or install.
I stress that when a customer calls me, he or she is talking to the owner. I’m sorry but I don’t believe it is a common practice of Mr. Lubner, Mr. Feeney, Mr. Levine or other CEOs to set up appointments, validate the parts needed and install them. Some shops fear the scripts that TPAs use that try to stress the importance of nationwide warranties that would be in effect if the “approved” vendor were used to install an insurer’s glass. I overcome that objection asking if the customer plans to move outside 50 miles in the next five years. The numbers of people that reply in the affirmative are minimal. I have always warranted workmanship for the length of ownership and have stood by that concept for almost three decades.
With the diversity of the American market, there is no one sure-fire way to make every sale. There are customers who are locked at a price point and are unwillingly or unable to consider any other factor. You have to consider that and move on. Your business has its very own break-even point and despite being tempted to alter that at times, you must remain faithful to honoring that or one hastens one’s own demise.
I am not trying to suggest we become Pollyannas and allow the competition to roll over us from a pricing aspect. Large or small, local, regional or national, it seems very unlikely from the way the economy is shaping up that any shop is going to find 2009 easy to do business in. Volumes and profit per unit numbers will be concerns for many of us.
However, it could be said that a shop is conceding defeat if its philosophy becomes finding the cheapest materials and installing them without conscience.
I just strongly believe that it is very important for independents to aid the public in being able to sort through the old “apples and oranges choices afforded to them. I also share the opinion that the better job we do to offer value to either a potential and or to an actual customer, the better chance one has of having a sustainable business in these recessionary times. Value like beauty is in the eye of the beholder. It’s not always what we think it is, but leave it up to our customers to decide.”
