As this new decade unfolds and this current recession drags on, what are the major issues independent shops have to face and for which they must create solutions? From my perspective, it comes as no surprise that the “new” issues are the issues of old since little has been done to address real solutions to the problems that confront this industry. Permit me to suggest the designation of the ostrich as a symbol of the independent glass sector, since far too many of us stand idle with our heads buried somewhere while wholesale industry mayhem goes on all around.
Take one subject: steering. Instead of reacting to various ever-evolving scenarios of TPAs channeling work to their in-house facilities, why not work to ban any sort of corporate glass ownership of a third-party administrator? I believe that could be done on a federal level with two legislative bodies to convince instead of 50 different states. Let the insurers farm out their glass claims, but not to companies that have a direct or indirect financial stake in completing those replacement and repair claims. This problem will not go away on its own and those who say it will or that it doesn’t matter are assuming the notable ostrich position.
Thanks to our compromised pricing models and cutthroat tactics, along with rising policy deductibles in many states, the insurance sector in auto glass has shrunk and will continue to do so. Not only that, but at no time within memory has there been such a large number of businesses or just people that tout the ability to install auto glass. The “good old days” apparently are far behind us and most likely will never return. There are far too many unqualified operations that are competing not only with each other, but also with legitimate shops, to entice the general public to use their services. That has already unleashed both a furious and perilous pricing war in all too many areas. Economists generally anoint that sort of activity as a benefit to consumers. Personally I would like to pluck that type of intellectual from his isolated perch in academia and show him what a cheap windshield install would involve in both glass, adhesive and technical expertise. Perhaps I could inspire him to publish “Duffy’s Law of Auto Glass Economics” for Nobel Prize considerations, which states: As pricing declines, so does quality. (Ergo: “You get what you pay for.”) There are large players in this industry who benefit from auto glass having an open-door policy to unqualified or unlicensed providers.
Manufacturers and distributors have product to sell and are not overly concerned about how their goods are installed (and nor should they be in the free enterprise system that exists).
Another disturbing trend is the decline of quality in the replacement parts that are available for purchase. You would think that competition among manufacturers would breed a desire for excellence. Hardly! It is the opinion of many that the reverse has occurred. Distortions, bad bends, loose or mis-installed hardware are all too commonplace. Glass is thinner, lighter, appears to crack far more easily and certainly seems to splinter more easily in removal. If this were another automotive commodity such as tires or oil and the product shortcomings were as obvious, there would be an enormous call for reform and oversight. Our industry has blithely ignored creating any sort of method consumers could use that would work along the same lines as speed and mileage ratings that tire purchasers can use. I wonder when the optician industry will approach and thank us for an increase in their sales of driving glasses.
How long and what will it take to change this shortsighted attitude? Those who do nothing to halt and reverse this very apparent decline are the true ostriches of our industry. If both product and installation quality continue to drop, the entire auto glass industry runs the very real risk of becoming devalued in the eyes of the public. While independents are far more numerous, the branding efforts of some corporate concerns very well may have more success based on visibility rather than any real proof. In short, if we don’t get our act together, there is a real chance of doing what ostriches do naturally, laying a very large egg.
