State Farm’s Offer and Acceptance Program to Change and the Offer Is Going Down

State Farm is changing the “offer” in its offer and acceptance program, effective September 19.

“State Farm is adjusting the market rates it offers for auto glass pricing in relation to National Auto Glass Specifications (NAGS®) and labor rates,” says Dave Phillips, a company spokesperson.

The company is communicating these changes through a notice sent out to AGRR companies. Though Phillips says the company does not reveal pricing information publically, glassBYTEs.com™/AGRR™ magazine editors obtained a copy of the letter.

The new pricing rates are:

• Pricing Zone 1: Currently, 25 percent off of NAGS list price for the piece of glass will change to 32 percent off of the NAGS list price;
• Pricing Zone 2: Currently, 15 percent off NAGS list price for the piece of glass will change to 24 percent off of NAGS list price; and
• Pricing Zone 3: Currently, 0 percent off of NAGS list price for the piece of glass will remain at that price.

The more populated areas fall into Zone 1, while rural areas are a part of Zone 3.

Labor for AGRR technicians will increase from $35/NAGS labor hour to $38/NAGS labor hour.

“There is no change to kit pricing nor to windshield repair pricing,” according to State Farm’s letter. “Your continuation in the offer and acceptance program is an acceptance of the pricing changes.”

To view a copy of the letter sent to AGRR companies, click here.

Editor’s Note: Tomorrow’s article: “Will Shops Accept the “Offer?’” What are your thoughts on the pricing change? Please email your feedback to jreed@glass.com.