The NAGS Rebalancing Approaching: Where to Get Help

The National Auto Glass Specifications (NAGS) rebalancing will go into effect on Monday, February 28, 2005. Are you ready? If you're not, you're not alone but there are resources available to help understand what to expect.

Seminars
If you're an auditory learner, if you need someone to explain the changes, what they will entail and how they will impact your business, you'll want to consider attending the Independent Glass Association's (IGA) Independents' Days National Convention February 25-26, 2005. On the seminar schedule for Saturday morning (8-10 a.m.) is a session led by Marc Anderson of the IGA and Bud Oliver, director of operations at NAGS, who will discuss exactly what you can expect and how business practices might change. Since the change takes effect the day after the convention, the insurance industry's pricing adaptation will also be discussed.

Software
Software tools are also being produced to help you get ready.

Belleville, Mich.-based Mainstreet has added a new feature, Auto Glass Price Analyzer, to its 7.0 software version Reports Module that will not only illustrates what the difference between NAGS 2004 prices and the rebalanced prices will be, but it will use existing data and invoices from the user's system to do so.

"Customers are going to use actual price levels," said Mark Haeck, sales manager for Mainstreet. "They can pull up any past invoices from any date and see how it compares from the old pricing structure to the new, rebalanced pricing."

The program, Haeck further explained, focuses on profit, allowing glass shops to compare real data from previous jobs to help determine what rates they will need to be charging to continue making the same profit margin. The enhanced Reports Module is available to users of the Mainstreet 7.0 software system and can be obtained through the company website, www.mainstreetcomp.com or by calling the company at 800/698-6246.

GTS Services of Portland, Ore., has released a proprietary NAGS rebalancing analysis tool, as well. For use with current releases of GTS' GlasPac LX and Breakaway Retail 7.0 jBase software, the tool is free and uses a glass shop's historical part mix to allow users to "review all product margins."

Fahmy Mechael, president of GTS Services, said that shop owners can use the tool to evaluate the effects of various combinations of glass discounts and labor rates on historical sales data and determine how to set equivalent pricing after the rebalancing is implemented.

Shops that can relate historical purchase information to new list prices using this tool can also present analysis directly from the software for credibility, showing they are charging an appropriate price based on the new approach and establishing optimal negotiating positions with customers, Mechael further noted. More information can be found on the company website, www.gtsservices.com.

IBS Software of Kansas City, Mo., also offers glass shops a look at the upcoming rebalancing. An Excel-based calculation tool is available for download (under the "Download" tab) from the company's website, www.ibssoftware.com. The rebalancing information will be automatically incorporated into future program updates as well.

NAGS itself offers glass shops a software option to prepare for the new pricing schedule. The NAGS pricing analysis tool also uses Excel and is available on disk, along with the top 700 glass parts (with the part number), the previous benchmark price, the rebalanced price, the benchmark price percentage change, adhesive quantity and labor hours. Disks can be purchased for $50 for one copy and $10 for each subsequent copy through the NAGS website, www.nags.com.


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