Tired of accepting discounts off NAGS rates, Christina Risinger, manager at Bartak Glass in O’Neill, Neb., contacted higher ups at a third party administrator (TPA)with whom they work, stating that the company would be happy to negotiate prices they considered to be “fair and reasonable,” for a windshield replacement that was referred to them.
“Had today been yesterday, I would have surely thought the dispatch I received was an April Fool’s joke,” Risinger wrote to the TPA. “ … The rates printed on the dispatch would not allow any business to make a profit. I invite you to follow me along as this information is surely helpful to you and how you make your future business decisions.”
The dispatch sent to Bartak represented a 65-percent off of the NAGS list price. This, Risinger argued, would put the company at a $17.60 loss for the windshield alone, not including labor rates and kit costs—a common sentiment expressed by independents.
“After it’s all said and done, the total [the TPA] wants to pay us to install that windshield for our customer is $216.08 when that windshield costs us $168.68, our labor costs us $36.80 and our kit costs us $12.00 for a total job cost of $217.48,” she said. “That would be a job done at a loss of $1.40 … I don’t know how you can possibly think the rates you dictate are fair and reasonable.”
In closing, Risinger suggested a certain level discount off list price, as well as certain flat rates for labor and kit.
“That’s a discounted NAGS rate, super standard kit and a labor discount,” she said. “That is a fair and reasonable transaction to nurture a business relationship.”
Rinsinger admitted she knew that there was a chance the TPA would offer the job to another company, but it was a risk she was willing take. In the end, the manager there agreed to her requested rates and made the company a regular fleet auto glass service provider in the area.
“I’m so sick of auto glass profit margins shrinking year after year because auto glass companies are working for less and less money while glass prices go up, up and up,” she wrote to glassBYTEs.com. “I want people to know that these terrible rates exist, and glass companies often feel compelled to accept them. In this instance, the job would have been a loss.”