"SCRS has been involved with other repair groups in organizing and hosting meetings such as the Repairer Roundtable at different industry-centric meetings throughout the year in an effort to focus repairer discussions on topics that are of most impact to collision repairers," stated SCRS Chairman Ron Reichen. "The Repairer Roundtables were specifically held so that repairers could engage in meaningful dialog surrounding an agenda that that reflected the repair industry's priorities. At this particular CIC meeting in Las Vegas, our group feels strongly that there are few other more important topics than mandates regarding procurement of parts or any other items purchased for resale in our facilities. Because this industry issue is slated to be the primary focus of nearly the entire second day of CIC, SCRS feels the industry is best served by encouraging as many repairers as possible to be present for those discussions."
According to SCRS, the Repairer Roundtable meetings will be continued at other times during the upcoming year, and will continue to be hosted by a variety of organizations as they have in the past.
The discussion comes at a time where a variety of different parts procurement service providers are entering the marketplace at an increasing pace, and while more and more carriers are researching, testing or launching their own programs with the hopes to be further involved in the parts location, selection and ordering process.
Further, industry participants involved in some of these programs are beginning to see changes in current program requirements that seemingly indicate insurers are looking to expand their interests from parts to other purchasing areas of collision business, such as refinish materials and supplies.
In a 12-15-2008 version of the State Farm Select Service Agreement, Section 4. Competitive Price, sub-section e. reads as follows:
e. Part Pricing Agreements. Provider acknowledges State Farm may enter into agreements with manufacturers, distributors, or suppliers of automotive parts. State farm will send Provider a notice in writing of any such agreement. Provider may, at its option, participate with State Farm and such entities in obtaining parts for repairs when performing under this agreement. Provider further agrees that any part pricing agreements negotiated by State Farm are in addition to the price offered by the Provider to State Farm under 4.b, 4.c, and 4.d. State Farm shall receive the benefit of both the Provider's pricing offer under 4.b, 4.c, and 4.d and the price or discount negotiated through any part pricing agreements. If Provider chooses not to participate with State Farm and such entities, the prices charged for replacement parts may not exceed the prices set forth in this Agreement.
In a revised version of the agreement dated as early as 1-17-2013, Section 4. Competitive Price, sub-section e. includes the following edits:
e. Part Pricing Agreements. Provider acknowledges State Farm may enter into agreements with manufacturers, distributors, or suppliers of automotive parts, supplies, or materials. State farm will send Provider a notice in writing give Provider noticeof any such agreement. Provider may, at its option, participate with State Farm and such entities in obtaining parts, supplies, or materials for repairs when performing under this agreement. Provider further agrees that any part pricing agreements negotiated by State Farm are in addition to the price offered by the Provider to State Farm under 4.b, 4.c, and 4.d. State Farm shall receive the benefit of both the Provider's pricing offer under 4.b, 4.c, and 4.d and the price or discount negotiated through any part pricing agreements. If Provider chooses not to participate with State Farm and such entities, the prices charged for replacement parts may not exceed the prices set forth in this Agreement by Provider may not exceed the price State Farm would have paid, had the Provider participated.
"If parts, paint and materials are of any significance to your business, this is a discussion you don't want to sit on the sidelines for," added SCRS Executive Director Aaron Schulenburg. "This is your opportunity to learn, to ask questions of those with first-hand experience, and to let your voice be heard. Don't allow our industry to be defined by a silent majority."
About SCRS' RDE Series: REPAIRER DRIVEN EDUCATION (RDE) series features seminar offerings, many of which are uniquely designed and being offered only at the 2013 SEMA Show. The series will be offered either as individual sessions, or as a package, and registrants will have the option to attend seven regular session seminars which will be delivered between the hours of 12:30 p.m. and 5:00 p.m. each day of the show. Each of the courses has been individually selected by, or crafted for, SCRS because the content specifically focuses on information that is relevant to collision repair professionals and appeals to the diverse array of marketplace perspectives within the collision repair industry. Register at www.semashow.com/scrs.
