What If NAGS No Longer Existed?
Who in the auto glass industry hasn't pondered the following question:
what if there was no NAGS? James Patterson, director of product management
for NAGS, and James "Bud" Oliver, director of operations for
NAGS, took the time to study that very question during the Independent
Glass Association's annual Independents' Days conference earlier this
Patterson and Oliver undertook three possible situations that could occur
if NAGS no longer existed.
They noted that if this were to happen, likely each shop would have to
determine the pricing part by part, and in contract negotiations, a buyer
would have to obtain price lists from each potential vendor and comparison
shop. In addition, Oliver and Patterson speculated that independent shops
would not be able to survive "because large buyers
realistically negotiate with thousands of potential sellers without a
benchmark or similar mechanism."
Secondly, Patterson and Oliver took a look at the downfalls of what could
occur if a new benchmark was created-but this time by a for-profit industry
Under this scenario, which they noted would be the most likely to occur
without NAGS, at least one or more industry participants with a stake
in the outcome would publish price lists. Strong buyers would adopt the
most attractive price list and would utilize it like they do NAGS, or
might even combine two or more lists to make the list best suited to them.
In the end, independent shops likely would be forced to use a competitor's
price list but would have no input on the pricing. Some in the audience
pointed out that this was very similar to what has happened in Canada.
Finally, Patterson and Oliver discussed what might occur if a new benchmark was created by a new not-for-profit organization or committee. They suggested that if this were to happen, funding would need to be provided by the industry and there would be no guarantee that there would be a positive outcome. Likewise, if a committee were to take on pricing, Patterson and Oliver said it would be difficult for participants, who would likely be industry members, to take direct action or responsibility.
Such a benchmark also would be beholden to special interests in that
For more information, visit www.nags.com
and click on "2007 IDG Presentation."
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