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Archive for September, 2009

Product Liabilities

29 Sep

Among the myriad number of everyday concerns, an installer or owner is coming more in contacts more and more is the issue of poor- fitting, low-quality auto glass. This begs a simple question: why do we put up with such nonsense? Are we creating a new standard of garbage in, garbage out?

I have been trying to rack my tired, aged brain to find the number of retail sectors that oftentimes sell and replace a new product to the consumer that may not represent an equal trade—other than the fact that it is in one piece. Take toilet paper—a shopper can make a decision if they want to pay and enjoy the benefits of single-, two-ply or plush paper. With auto glass, it is becoming more obvious that we offer only one choice and more times it’s the industry’s version of single-ply.

That is the great frustration. I don’t care if prices, wholesale or retail have dropped 100 percent, I want a product that I can install with confidence; a product that fits, is free of distortions and one that won’t cause my customer to call me in three months complaining that the mirror bracket fell off his new windshield of with or without taking glass with it. Is that too much to ask? Even more important, doesn’t our customer deserve that courtesy as well?

Much of this is due to the fact that the world has become flat from an economic sense. Auto glass has been one of those products that has benefited from cheap overseas labor and from predatory trade practices. One can almost trace the general overall decline of our product to the moment when distributors were able to acquire a steady supply stream and found acceptance from the retail end to the low pricing offered by such circumstances.

There are more than 900 companies that have a DOT number assigned to them. Thanks to distribution acquisitions, mergers and closures along with overseas production from American sub-contracts, the U.S. auto glass retailer is seeing only a fraction of those. While some companies have risen above the crowd in volume produced, it seems those very same manufacturers are the ones in which many glass techs have little faith when it comes to installing glass in their customers’ vehicles.

The list of objections and sins is long. Bad bends, visual distortions and mis-set hardware are three fairly common problems installers face. Encapsulations, mouldings and frit paint are areas that oftentimes provide woes to those artistically sensitive techs. With the number of manufacturing scandals (such as poisoned dog food or the use of industrial chemicals for medicines) coming from a country that is responsible for much of our imported auto glass, one simply lacks confidence in the overall integrity of the product.

Let me relate an incident that took place this year. I had a customer contact me to install a windshield for his 2006 Audi A6. He requested that I purchase his glass from the local dealer even after I mentioned that I could buy the same Sekurit brand sans logo for a lower price from a distributor. We talked during the install and the subject of OE came up. He told me he worked for an American drug company and his job was to go overseas and validate that their offshore vendors were actually were making their drugs according to formula. All too often, he said, there were breaks in the supply chain and there were multiple attempts to substitute cheaper chemicals to save money to increase the vendor’s thin profit margin. Based on his experience, he proclaimed that he would never buy a generic prescription if possible.

Ask yourself a simple question: Is it cheaper to live today than it was five years ago? Oil has spiked, making every mode of energy more expensive along with shipping. Raw glass and PVB production are oil-dependent as well, so ask yourself another question: Why has the wholesale price of auto glass dropped so low over the past few years? Cheap labor along with perhaps newer manufacturing facilities certainly can affect cost savings. However, if you are working with razor-thin margins in meeting contracts, would it be beyond the realm of credibility to fear something more fraudulent could be in play? If you argue that all sorts of material certifications are required to import and sell a product here in the States and believe that each and every one of those documents are valid and properly executed, you would be the perfect person to purchase a New York City bridge that is for sale.

How many folks remember the incident a few years ago when there was a urethane release problem on glass and it was determined that an employee(s) from a certain manufacturer was using gasoline to clean residue from glass before shipping overseas? That wasn’t exactly a Sigma Six-approved process—nor was it overly aired.

How many techs and distributor employees have noticed that many windshields have gotten lighter over the years? Remove a Carlite DW1256 and replace with a generic brand and I will bet that the new glass is lighter. If I remove a Mopar windshield and install a generic one in almost any late-model Jeep or Chrysler product, I personally can detect a noticeable difference in weight. Is it magic? Has someone invented “Glass Lite” and not alerted me?

Is it easier for an errant pebble to crack a windshield these days? Seems to be, but this could just be our industry’s answer to planned obsolescence. Perhaps far wiser powers exist than I think. Still, when I experience such things as PVB easily tearing or oversized shards of tempered glass, it simply becomes a safety issue that appears to be all too often ignored to enrich someone’s pocket.

Is there a defense against poorly made glass? Sad to say, probably not, although I wish there was. I try to avoid certain DOT numbers whenever possible when ordering glass, but it is getting almost impossible these days. Some of the worst offenders have the widest distribution. However, making that effort is the only real solution wholesale glass buyers have these days.

No one is more acutely aware of how hard the times currently are than me. However, this entire industry will suffer dire consequences if the public wakes up from their apathy and ignorance and begins to believe that little of what we have to offer is of value. You could spend a lifetime creating a noted reputation or spend millions in building a brand and lose it entirely if the product we sell and install is considered by the buying public to be second-rate at best.

 
 

An Old Dog Learns a Lesson

21 Sep

It’s been a lousy summer. I could bore you with stories of falling volumes and margins, the doubt that can creep in during tough times and just hard events like the loss of a devoted family pet. Yet I was uplifted this past Saturday and reminded once again that we all should view life as a positive experience and that within our trade, there is indeed a brotherhood.

Writing these weekly columns is a labor of love, but it still can be called a labor. I receive zero compensation but I have been enriched in many ways—mostly through the people I have met. Many of you may know the names of Deb Levy and Penny Stacey. I can tell you firsthand that they are two of the hardest working people that really care about the product they put out. I owe a lot to them because they allow me a fairly free hand on my subject matter and they take heat from those whose toes I may have stepped on. I digress, however …

Over the years, I have received various e-mails and phone calls from those who have the patience to plow through my columns. One of the early contacts has blossomed into a telephonic and cyber friendship. This past weekend Larry Carlson of Austin Auto Glass decided to take his wife to see San Francisco for a few days, which put him well into range for me to put a face to a voice. Thanks to him and to his lovely spouse, Lu Ann, I was provided the opportunity to show them the part of Central California that I call home.

Just to give a bit of background, Larry is over 50 and is a mobile tech, who, like myself, has owned and operated fairly large retail shops in his past. We both service car dealerships; however, his specialty area is more toward body shops while mine is new car warranty work. To his credit, he also has diversified by having off-road construction accounts that require custom lami cuts and installs.

As noted earlier, I have not been in a happy place. But things started to change that day even before I actually met the Carlsons. I live in Santa Cruz, Calif., a small, seaside city noted for its surfing culture that is located about 75 miles south west of San Francisco.

I drove up to meet Larry and his wife at their hotel early Saturday morning. On my way, I chose to drive along the coast for the first 40 miles, a route that I rarely take any more. Even as I was passing through various banks of fog, I was reminded how absolutely beautiful the ocean coastline was while you would see small clusters of surfers that were braving brisk water temps and testing themselves as each and every wave they rode provided a distinct experience unto itself. The thought occurred to me that I, too, should take each day as it comes and let the negative part end as the day does.

I had offered the Carlsons two alternatives—go north into Wine Country or return south with me to view my hometown, Carmel, and points south, which could include Big Sur. After my drive north, I hoped they would choose the second one so I could back track toward home.

If any of you out there is familiar with computer dating, you must know that the actual physical meeting of two strangers after corresponding is not only awkward but also revealing. Ours was a bit rushed as I pulled up outside his hotel and had them quickly jump into my Jeep since standing (much less parking) was prohibited. After 18 months or so, I finally had the chance to put a face to a Texas drawl. It took about a nanosecond to validate my reasons for liking the guy.

I won’t bore the readers on the events of what turned out to be a 15-hour visit, but the Carlsons saw a few hundred miles of gorgeous coast and even a fleeting glimpse of a rare California condor that had a wingspan of at least 6 feet. Yes, we talked shop, but we also talked about baseball, Texas football and about dogs. Our wives, who had never met or talked, chattered for hours like long-lost sisters.

Larry was born into the business. His dad owned a shop and I assume taught him the trade. He worked and managed shops for large chains. I’m seven years older, but he has glass seniority over me. I can’t say why, but before he earned my friendship, he gained my respect, which probably explains the first part of the sentence. Larry also has taught me a few things. For one, he has informed me that Squire Wire is pronounced “Squawer Warer.”

I looked at his hands. I first chided him about the lack of any urethane or primer stains and compared mine. I then asked him about cuts and the scars that may exist. He obliged me in that request and shared mine as well like hard-won battle trophies that gave proof that we indeed were members of that unique band of brothers that share a common bond.

Driving home early Sunday morning I was trying to formulate thoughts and concepts for writing this week’s blog. A few things stood out as I was trying to keep my eyes open.

First of all, I need to stop and smell the roses more. I had forgotten how precious certain items should be to me like, the physical world, time and friendships. It is a lesson that not only I need to repeat. Too many of us are consumed with only one aspect of our lives and tend to forget some of the larger concepts.

The second one applies to our industry. We have to learn to work together. There are serious issues that should be addressed, but are being ignored or just glossed over, much of that due to a reluctance to unite and act. To be able to work together, it starts with the simple acts of communication and trust. The way I see it is if two guys that live more than 1,000 miles apart can do it, more of us can. Y’all should try that more.

 
 

Whack-a-Mole

17 Sep

I remember being told somewhere that life is a game. If that statement were true, I would opine that the contest in which auto glass retailers should become most proficient is the classic arcade game, Whack-A-Mole. It is a skill set that is most required when dealing with the ever-changing tactics of insurers aided by Big Glass. When one biased or slanted gambit is revealed and acted upon, you can be sure that another stratagem will pop up and need to be dealt with.

It has been rumored that GEICO has begun saying it may mandate an “inspection” in some cases prior to handling an auto glass claim. I wonder whether this alleged maneuver would be a preemptive strike designed to offset the pressure applied in some states to the existence and effect of third-party administrators on independent shops. One callously wonders how many “inspectors” will show up with a windshield in their van that just happens to fit the insured’s car? Trust me, no company is going to add manpower just to run around to validate a broken windshield. It doesn’t take a village to determine a broken door glass, either. One would think in the age of digital photos and desktop collision estimating, that high-tech practice would be more in vogue than handing over a physical operation to a very select number of preferred vendors. That’s assuming the insurer and its anointed inspectors were interested in any sort of level playing field. (That mole on your left is lifting its head up!)

The most difficult issues we as independent shops face are the issues of size and unity. Simply put, any insurer or national corporate installation company has a common purpose or goal that exists throughout each outlet located in every state it conducts business in. Sadly our independence and diversity is a severe hindrance because not only do we lack financial resources to combat practices deemed unfair but more importantly we lack consensus and certainly solidarity of action and purpose. Add in the fact that much insurance and claim law is state-rooted thereby making it 50 battles in many cases instead of just one. That truism alone should alert any independent that joining and becoming personally involved with a trade association is more in his interest than ever before. King Canute had a better chance of tidal management than most independents have with amending insurer claims practices on their own. (Two more little buggers popping up on your right!!)

The advantage always goes the offense. Any insurer can mandate its own claims practices until a legal issue arises. A TPA composes various scripts to be read to its claimants to influence behaviors or choices. Both parties can be legally enjoined from certain practices but it is all too easy to modify a few words slightly or blame an overzealous CSR and regain the offensive. If one wants real change, one has to end the incestuous relationship that exists between glass claim administration and corporate auto glass. Legally blowing up that business model or having it rot from within are the only two real scenarios that exist which can protect independents from steering. Otherwise, the only other option is to fight a rear guard action that attempts to protect your own interests. Custer lost using that tactic. (Help!! More mallets, more arms to use them with!!)

History tells us to expect less corporate accountability. Regulations require strict enforcement and in almost every public agency there seems to be a lack of purpose and dilution of power. Take the Security and Exchange Committee (SEC). It fiddled while Wall Street incinerated the country’s economy. Insurers and their favored providers know that the greatest fears their customers have is either claim denial or a premium increase based on reporting a need to use their insurance. That fear is used to manipulate behavior which is the main reason a TPA enjoys success as a golden funnel to certain parties. It is highly unlikely an insurer will purposely abandon its dark face of claims miserliness while it spends much of its advertising dollars convincing Americans that it has a warm fuzzy side (especially when the insurance industry is aware of the benefits of political contributions). (Are your arms getting tired of hitting?)

The problem is this is neither a game nor a level playing field. Many retailers have been far more reactive than proactive when it comes to steering and that has to change. Your best asset is your knowledge and respect for your own market. Educating your customer regarding his rights and freedoms without sounding vindictive or petty is an important concept to relate the caller when contact is first made. Give that caller reasons to use you and by building consumer confidence in your shop, which will aid them in resisting certain verbal blandishments that TPA CSRs have been known to use on insureds. Some of us have had the opportunity to listen in on these conversations and at least for me, the urge to whack something else other than a toy mole has arisen more than once. The one truism that we have to remember is that scripts and steering methods (some coarse, some very sophisticated) will continue to evolve and pop up. Until some resemblance of balance is regained in the claims sector, I would keep my mallets close in hand.