In a letter dated May 1, 1998 to its' Offer
& Acceptance participants, State Farm announced it will be adjusting the discount
rates on Auto Glass pricing to repair facilities.
State Farm, which analyzed the Spring Auto Glass
Price increase, says it was the "largest increase in recent memory", having an
impact of over 21%. The new discounts will be in effect June 1, 1998.
The following is the text
of the letter sent out to thousands of glass shops who participate in the State Farm Offer
& Acceptance Program.
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| May 1, 1998 |
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| Dear Offer & Acceptance Participant: |
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| As you are aware, NAGS has recently released
their Spring glass price update. The changes resulted in the largest increase in recent
memory. We estimate that the impact of the NAGS price increase on State Farm business is
over 21% |
|
| In an effort to offer competitive glass
prices that are in line with your costs, State Farm must now react to the new pricing and
adjust the discount rates offered to your facility. It is our intention to adjust the
discount rates in most areas primarily to keep pace with the recent NAGS price increase.
However, in areas where market conditions warrant more competitive pricing, we have
adjusted our offer accordingly. |
|
| Under the Offer & Acceptance Agreement,
you previously agreed to future pricing structures upon notification from State Farm.
Effective June 1, 1998, the pricing for glass service set forth in Section 1 of the
Agreement will be as follows: |
(Various
Pricing / Discounts listed here) |
| The above information describes changes to
the Offer & Acceptance Agreement previously completed by your facility. All other
terms and conditions of the Agreement remain in effect. As provided in the Agreement,
either party can terminate the Agreement in writing at any time. |
|
| We look forward to continuing our mutually
beneficial business relationship. However, if it is your decision to discontinued your
participation in the Offer & Acceptance program, you must send WRITTEN notification to
State Farm at the following address: Glass Central Unit A-4
State Farm Mutual Automobile Insurance Company
One State Farm Plaza
Bloomington, IL 61710 |
|
| Please do not call Glass Central to be
removed from the Offer & Acceptance program since any request to terminate the
Agreement must be in writing. Until we receive a WRITTEN request, any jobs dispatched to
your facility on or after June 1, 1998 will be processed under the new pricing structure
and your facility will continued to remain on the Offer & Acceptance program. |
|
| We appreciated your continued participation
in our glass claim program. Thank you for helping provide our common customers with the
best glass claim service in the industry. |
|
Sincerely |
Tony Ferrara
National Glass Manager
|