Volume 10, Issue 1 - January/February 2008

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Looking for Answers

Dear AGRR,
I was reading James Patterson’s article in the October 2007 issue (see page 16) titled “Inside the NAGS Benchmark.” I found some statements puzzling. First, if NAGS is totally independent, why did the amount of time to install some windshields go down when NAGS rebalanced in February 2004? Glass shops thought they were going to finally get some realistic labor payments. Same vehicle, same NAGS number—lower installations times? Secondly, late in Patterson’s article, he writes, “Auto glass providers will be able to command a premium when they are sought out by vehicle owners because of high quality, specialized services or little competition in their area.” Where has he been? Has he ever worked in the glass industry? Does he not hear his readers’ responses as on page 6 of the October 2007 issue of AGRR?

It matters not to the insurance company’s claims administrators, as Eric McCoy of McCoy’s Family Auto Glass writes in his letter. If you do not install the glass at the insurance companies’ mandated rate for discounts and labor, “someone else will.” The glass shops have no say in the pricing, whether they are quality-driven companies or shade tree providers. The networks dictate price, discounts, rate and times. I know of no other situation in the marketplace where the entity writing the check dictates what they will pay. You may negotiate with a car dealer or a plumber, but the networks do not negotiate; you get paid what they say they will pay. 

John Lucas
President
LU-JAKS Auto Body Rebuilding
Wilson, N.C.


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