Who controls your windscreen business?
I come across an interesting post on the National Auto Glaziers Association Blog recently that was worth sharing.
I am sure its not just the windscreen industry that has fallen victim to insurance groups controlling their businesses in return for a few short term jobs. Panel shops, roofers, builders to name a few, have all felt the pinch from the insurance industries steering tactics.
In the beginning the terms of insurance groups were quite loose, the rewards were below average to reasonable and the payment terms were when they get around to it. That said, you could make some money provided you had some high volume panel shops on your books. This was the good old days, mind you.
The difference was back then insurance groups needed your windscreen services. As time has gone by the roles have been reverse. Many windscreen repairers now rely on this stream of insurance work to keep them in business. A scary thought.
So is all insurance work bad? We don’t think so, however we do need terms to be agreed by both parties to make a deal worthwhile. It’s not good business to take 100% of the risk and only a small percentage of the profits. If we do it will get to the point were insurance groups will import their own glass and ask your business to install it for them. It’s already halfway there.
It’s happened to window tint businesses. Dealerships now supply the film and hire window tinters for as little $70 per install. Personally, it’s not the way we would conduct business, it makes little sense.
Imagine walking into McDonald’s with a box of frozen hamburgers and asking them to cook them on the grill for you for a dollar a burger. What do you think the answer would be?
Think very carefully about signing any agreement that you have had no say in. If you have had no say in the terms of the contract its not an agreement, its a demand.
If you absolutely must deal with these organizations that want to control what you buy, what you sell it for and how you must operate, at least cover your bases. Have them sign an agreement to at least guarantee a your business a set volume of work per week for the contract term. This may at least insure your survival to the end of the contract.