How do I find out how much auto glass work comes through third-party claim networks?
Ask for a job list for the last full year with the source tagged on each job, then total the work coming through claim networks against walk-in and direct customers. Check the same split on revenue and on profit, because network jobs often carry different prices from direct ones.
Request the job-level sales report rather than a summary. Each job should show where it came from: a claim network, a fleet, a dealer or a private customer. If the shop does not tag sources, ask how it can tell, and be wary of estimates. Sort the report by source and look at both the number of jobs and the revenue.
Then look at the terms. Ask for the network agreements and see who sets the prices, how quickly invoices are paid, and whether the shop can be removed from the list. A shop that depends heavily on one network can lose much of its work with a single notice.
Compare the margin on each source too. If direct work pays better, ask whether the shop is growing it. Finally, ask whether the networks accept a new owner without a fresh approval process. Speak with the seller about introducing you. Your accountant can help you read the profit by source. Look at trends as well as totals. If network work has been growing while direct work shrinks, the shop may be trading independence for volume, and you should understand why before you take on that balance.
Key takeaways
- Get a job-level report tagged by source, not a summary.
- Compare margin by source as well as the volume.
- Ask whether network agreements carry over to a new owner.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
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