Rising industry surcharge rates are the latest indication of an uncertain economic recovery in the auto glass industry. Effective Monday, June 21, Mygrant Glass increased its fuel surcharge to $8 per delivery:
“As we continue to navigate a very challenging global supply chain, freight and transportation costs continue to rise at unprecedented rates. We have done our best to try and absorb as much of this burden on behalf of our customers, but in order to continue offering high levels of service we will need to make an adjustment to our fuel surcharge. Effective Monday June 21st, we will be increasing our surcharge to $8.00. Thank you for your continued support of our business,” Mygrant said in a June 17 Delivery Fee Update on its website.
Peter Brown, president of Tiny and Sons Auto Glass in Pembroke, Mass., said the surcharge increase is sure to impact his business.
“I’m not sure if I can say that it’s justified or not, but as far as I know, I don’t think it’s right,” Brown said. “The problem is that when the surcharge starts and the gas prices go down, companies don’t automatically stop the surcharge. We’ve seen it from other suppliers—once they get it, they don’t give it back and we have to fight for it. I understand they have to pay the drivers and I understand that this is a cost of doing business, but in our industry, we can’t pass along costs this way. The third party administrators and the general public won’t pay for it, so it comes out of us.”
For others, the surcharge increase isn’t as significant to their day-to-day operations.
“From the start, my orders through Mygrant have been will call,” said Omar Landin, auto glass technician at Klear Fix Repair Mobile Auto Glass in Orange, Calif. “To me, it has made [the process] more simple and beneficial to do it in person.”
Landin said pick-ups offer various benefits.
“Picking up the glass in person allows you to see defects on glass or to inspect the glass prior to purchase,” Landin said. “This point of view is based on [a plentiful] selection of distributors in my area. Everything is within driving distance.”
Whether delivery or pick-up, Landin said there is no perfect system.
“A con for deliveries can also be when glass is ordered wrong or it doesn’t have full information [regarding] attachments,” Landin said. “This can cause a loss to the pockets. $8 adds up in the long run. It’s either time lost or an expense—we will always have one or the other.”