The next time I talk with him I’m going to ask him if he is part of this program, and if so, what he thinks about it.

Thank you for taking the time to point out issues like this.

OE Connection may have made a huge mistake by partnering with the Farm. Almost every OEM manufacturer has partnered with OE Connection for locator service and OE Connection has their “blessing” for dealers to partner up with them for electronic parts ordering by shops. The dealer pays a monthly fee for each franchise (in other words if one shop wants to send me two parts orders for two of my carlines I have to pay two seperate monthly fees). When the majority of dealers learn that their “partner” is helping just a few “whore dealers” get the bulk of the electronic parts orders from State Farm shops, there WILL be a mass defection from their services. This undoubtedly will be communicated up the line to the OEMs and could cause problems with their OEM relationships eventually.

Scot Strong

You have written a great article!

Problem is, as you well know those participating really can’t get out of the situation. They are stuck with State Farm as their partner due to building their business with State Farm’s and other insurance partner’s customer volume. Loose State Farm and they loose their volume. How many shops who are contracted can stop without State Farm’s cash flow? Not accepting State Farm’s new deal is not an option for them. State Farm knows our industry much better than we do. I do not see State Farm loosing here as much as I would like them to fail. The collision repair industry is too fragmented to unify against State Farm and the others.

Solution:
The only method of survival for those seeking change is to learn a new way of operating outside of insurance company relationships. A total reversal of what has transpired over the past 40 years. Those true business people who can walk away from the insurance industry and absolutely refuse to accept their estimates and documents can win. Yes, they will most likely downsize and change in directions never thought of but is is possible and profitable. There is another direction to follow………..

Due to the manner in which the collision repair industry has operating over the past 40 years it will be hard for many collision repair professionals to grasp what I have written. For this reason I recommend interested shop owners seek out independent collision repairers who are successfully operating. Please be willing to change when you call – You can!

Anyone with questions can call me @ 610-269-1610 or email @ steve.behrdt@verizon.net

Steve Behrndt Pa.
610-269-1610