“Chicago Group” Begins Unveiling New Pricing System

A group of 26 auto glass companies representing 430 locations around the United States, has developed and is in the process of unveiling a new pricing system for use as an alternative to NAGS pricing.

The “Chicago Group” as it is know, has begun having private meetings with a number of key industry players, including representatives of NAGS itself. “We are beginning to let everyone know what we have been working on,” said Group member Wes Topping of Elite Auto Glass in Colorado.

The Group is expected to make a presentation on Friday at the Independent Glass Association’s convention in Columbus (see related news release Alternative Pricing Model Presented at IGA Convention). “We haven’t even started with them,” said Topping when asked if any insurance companies have agreed to use the new pricing system, “first we need to let the industry know what we are doing.”

"We have met briefly with representatives of the group," said Jesse Herrara, general manager of NAGS. "They have shared their ideas with us. We think some of the issues in the industry that they are trying to address reinforces what we are trying to do. We are aligned with them in that we are both trying to address these issues."

"There are questions, however" he continued," about the proposed methodology and implementation of their program. I am going to reserve judgement on that. I would, however, be very concerned for retailers and what impact this would have on them. Their method will inject additional cost into the industry that someone will have to carry, and I'm concerned about that additional cost.

"I'm also concerned about acceptance of this approach. The biggest obstacle to their success is that insurance companies must accept it. NAGS, at this point has the stature and relationships with the insurers that this group does not."

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