PGW Announces Change in Delivery Surcharges
May 1, 2012

by Katie O'Mara,

Pittsburgh Glass Works (PGW) sent out a notice to its customers yesterday regarding a change to the company’s delivery surcharges. The change was effective today.

“The delivery surcharge will continue to be based on the Department of Energy's (DOE) reported average regular grade gas price from the prior month,” read a letter from David Goldstein, direction of distribution services at PGW, sent out to customers. “We will continue to ensure you have the quality products you need, delivered on time to service your customers."

“We have seen [delivery surcharges] jump from $1 to $5 over the years,” says Clyde Stephens, owner of Visions Auto Glass in Perham, Minn. “They have to do something to make up for high fuel prices. The hard part is that we can’t pass along that cost to insurance companies or third party administrators. However, this is not the biggest problem in our industry.”

“Network shops can't pass this through to the insurance companies so it's more pressure on net profit and I'm sure this will knock a few more shops out of business in our state. Independents don't have the loyalty to a single supplier like they once did. Cost is becoming the primary factor in our buy decisions and this increase will cost PGW volume. I'm sure of that,” says Dave Zoldowski, owner of Auto One Brighton in Brighton, Mich.

PGW had not responded to requests for comment at press time.

The chart below was included in the notice to a Michigan auto glass shop.

DOE's Month-End Cost Per Gallon Fuel Surcharge Per Delivery
(As of May 1, 2012)
$2.00 - $2.24 $1.50
$2.25 - $2.49 $2.00
$2.50 - $2.74 $2.50
$2.75 - $2.99 $3.00
$3.00 - $3.24 $3.50
$3.25 - $3.49 $4.00
$3.50 - $3.74 $4.50
$3.75 - $3.99 $5.00
$4.00 - $4.24 $5.75
$4.25 - $4.49 $6.50
$4.50 - $4.74 $7.25
$4.75 - $4.99 $8.00
$5.00 - $5.24 $8.75
$5.25 - $5.49 $9.50
$5.50 - $5.74 $10.25
$5.75 - $5.99 $11.00

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