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Auto Glass Biz News
September 1, 2000
LYNX Rotation to Include Pricing as a Basis for Referral
by Debra Levy
AGRR Magazine
When the new agreement between Allstate Insurance Company and LYNX Services of PPG Industries is announced next week, it will contain a new provision that could create sweeping changes in the way business is assigned by both entities.
Glass shops that wish to receive work from Allstate Insurance will still be required to meet a standard set of criteria. In addition, they will be allowed the option of providing their best prices for doing auto glass replacement work. This price will then become an important criteria which LYNX Services will be required to use in its assignment of work.
"We are trying to set a level playing field," said one insurance company source who asked not to be identified. "This will give the more efficient shops, the ones that can do it for less, an opportunity to do so and to reap the benefits of increased volume."
Privately, Allstate officials say that they have been frustrated by all segments of the auto glass market-from the small companies that say they can do work for much less than the networks to the larger companies themselves that still offer lower prices for "cash" customers. They see this method as a way for them to insure the best prices available.
Companies will be allowed, at their option, to submit pricing based on a percentage off NAGS pricing, along with a labor rate. The request for pricing is not a conventional "bid" in that it cannot be changed once it is placed. Allstate and LYNX are still negotiating over how often to allow changes.
The news is likely to change the way Allstate business is assigned significantly. A detailed news analysis and reaction will follow early next week.
(c)2000 by Key Communications, Inc., publishers of USGlass and AGRR magazines. All rights reserved. Reprinted with permission.
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