AGRR Industry Debate Over NAGS Pricing Continues

“It’s death by a thousand cuts,” says Bryan Yarborough of Glass Doctor of Tampa Bay, discussing the latest National Auto Glass Specifications International Benchmark Fall Calculator. In the most recent calculator, 11 of the top 20 prices showed a decline.

“The price decline creep does have a slow and progressive negative impact on the insurance billing and average ticket,” says Yarborough. “This is definitely not a good thing. Just think … we are all experiencing inflation in the costs in our business yet the top 20 NAGS parts declined every year.”

Gregg Johnson of Novus Glass & Truck Accessories in Platteville, Wis., says his biggest problem with NAGS “is the way the insurance industry manipulates it.”

“Are there still codes for mobile work, disposal and clean up? If yes, then why are we not able to bill for these items?” he asks.

“As far as pricing goes, how in the world can these items go up—fuel, insurance, wages, benefits, maintenance, taxes—but the NAGS price basically stays the same or lowers?” he questions.

Meanwhile, Michael Eby of Glass Doctor St. Louis & Kansas City, says, the latest calculator has not impacted his business.

“The decline in list prices in minimal,” he says. “For me, it’s a non-event.”

In response to industry feedback, Bud Oliver, director of product operations for NAGS/Mitchell International, says, “We have always stated that the NAGS benchmark price for glass is based on acquisition costs’ of glass only.  We do not include fuel, labor, wages or overhead into the calculation of the NAGS glass benchmark.  We do publish a labor time, and it is up to the shops to determine the labor rate they charge.  The market ultimately determines the selling price of glass, labor and materials.”

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2 Responses to AGRR Industry Debate Over NAGS Pricing Continues

  1. Jeff says:

    We have been our own worst enemy. I consider most of NAGS pricing to be the fair market value for auto glass. Our real issue is accepting the various discounts and allowing our materials and labor prices to be dictated by someone other than our customers. When a competitor says “I’ll do this job for 40% off NAGS price” and discount their labor; the insurance companies and/or third party administrators can tell you and your customer that they can have the work done elsewhere for that discounted price. This is especially an unfair tactic when you are grouped into a regional pricing zone that may be 100 miles away and has no real bearing on your true market area.
    We have to make money to keep our doors open and none of us are eager to turn away business, so we accept the discounts that are demanded of us until we reach our breaking point. Does ANYONE’s insurance cost go down whenever there is a deeper discount required? Yet our cost of doing business continues to rise.
    Imagine what we could do, if we could ALL-just say “NO!”

  2. Ira Turner says:

    With all due respect to Bud Oliver, NAGS has never disclosed how they acquire the “acquisition costs” for auto glass.

    Since I deal in the “hard-to-find” auto glass area, I often see a current NAGS price on glass that none of the main suppliers offer. I feel there is a shortcoming in their formulas for determining their guidelines.

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