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Glass Industry Biz News 

December 1998
NAGS Announces Benchmark Pricing For 1999

Price "re-evaluation" hopes to 
eliminate deep discounts off
of artificially high list prices.


January 1, 1999 the Auto Glass pricing based on NAGS starts a revision. Touting it's new "Benchmark Pricing", NAGS has re-evaluated it's published prices, drastically reducing the list prices in order to get "closer to existing competitive prices". The auto glass industry has long been plagued by 'deep' discounts off of artificially high list prices.
At the same time, NAGS has revamped the labor hour time, in order to be more in line with it's parent company Mitchell's Collision Estimating Guides. The average NAGS hours have been reduced approximately 20%, but are supposed to represent a more accurate time in real hours. 
According to NAGS, the new prices have resulted in an average drop in windshield list price of 68% (from $1223 to $392); and tempered parts have been reduced an average of 53% (from $672 to $358).
To get an idea of how the list price change will affect discounts, shops will have to evaluate price structures from their suppliers and their selling market. As there is not a price increase coupled with the 'revaluation', the approximate formulas (see chart below) to get your new 'adjusted' multipliers are as follows. For windshields, take the "multiplier" x 3.2, and for tempered, take the "multiplier" x 1.96 . In theory, by applying your new "adjusted multipliers" to the new list prices, will get you the same net prices as using your "old" multiplier on the 'pre-benchmark' list prices.
This is an average, and NAGS will be including a suggested "conversion chart" in their New Benchmark Calculator.

Formulas to Figure New Discounts
   On Benchmark Pricing (aprox.)  
Windshields
(80% off) Mult. of .20 x 3.2 = Mult. of .64 (36% off)
(70% off) Mult. of .30 x 3.2 = Mult. of .96 ( 4% off)
~~~~
Tempered
(65% off) Mult. of .35 x 1.96 = Mult. of .69 (31% off)
(55% off) Mult. of .45 x 1.96 = Mult. of .88 (12% off)

 

 

Official NAGS Statement on Benchmark Pricing:

Benchmark Pricing Information

Along with our customers, NAGS has recognized the need for realistic pricing and labor times. The traditional methods NAGS uses to establish the NAGS List Prices™ have resulted in escalating benchmark pricing and ever increasing discounts. We at NAGS are responding with a REVALUATION of our benchmark pricing along with adjustments in the NAGS Labor Times™.

Effective with the FALL 1998 Calculator publication, NAGS will inaugurate new benchmark pricing based on a complete and comprehensive analysis of all available manufacturers’ pricing sources. The purpose of this change is to provide a NAGS Benchmark Price that is closer to existing competitive prices. We at NAGS believe our new benchmark will more closely predict realistic, fair aftermarket glass dealer prices. As with any pricing guide, the subscriber is the final judge of value.

Along with this change in the benchmark pricing, NAGS will also align all labor times to the Mitchell Collision Estimating Guide, factoring in appropriate cleanup times as indicated by the Mitchell labor time studies.

In order for these changes to work effectively in resolving the pricing issues facing this industry, certain changes in the industry pricing practices will be required. These include:

       

    • Reduction of the NAGS Benchmark Price

    • Realistic hourly labor rates

    • Fair pricing for additional materials used in installation

    • Re-negotiation of trading partner agreements