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FeedState Farm video tries to address repairer concerns about PartsTrader
May 17, 2012—State Farm Insurance this week distributed a video to its Select Service network shops to address widespread concerns that repairers have with the company’s new electronic parts bidding and ordering program through PartsTrader.
State Farm said it recently completed usability and field-testing of the new program with repairers and their part suppliers, which lead to the development of enhancements within the PartsTrader application. Within the past few weeks, State Farm has initiated pilots of the program in additional U.S. markets—Tucson, Ariz., Birmingham, Ala., Grand Rapids, Mich., and Charlotte, N.C. The company is receiving feedback from both suppliers and members of its Select Service network who are participating.
“We acknowledge the significant change this represents to the repair industry, and frankly, reaction from a few in the industry has not been positive,” George Avery, auto claim consultant—P&C Claims for State Farm, said within the video. “We want you to know that we are committed to working through these changes with our network in a collaborative and constructive way.”
Avery addressed two main areas of concern that have been expressed by repairers using the program.
• Part suppliers: With respect to a shop’s part suppliers, repairers are in full control over who provides parts, regardless of the part type, just like they are today, Avery said.
“We have worked with PartsTrader on a process that is respectful of and enables you to maintain your relationships and negotiated deals with your vendors,” Avery said. “We understand that relationships with your vendors are important in managing your business, much in the same way we value our relationship with you.”
• Part margins: Avery said the PartsTrader application provides repairers with a wide range of capabilities to locate parts and place orders in a flexible and timely process. He said State Farm understands that repairers consider many factors when making part selections for the vehicles being repaired. In addition to price, things such as quality, availability, vehicle type and supplier performance are all important considerations.
The PartsTrader application does not provide State Farm with access to a shop’s buying price or part profit margins, with the exception of recycled parts, Avery said. Repairers can choose the parts they feel are best suited for each individual repair.
“Our company’s reputation was built on fairness and square dealing, and we take issue with the way some in the industry have portrayed our organization. We take pride in knowing that this industry has consistently rated State Farm as a leading insurer to work with year after year,” Avery said. “From the beginning of this effort, we have been focused on creating a more efficient and transparent part procurement process. And we have a responsibility to our policyholders to ensure effective oversight of their premium dollars. We recognize that no effort will succeed if there aren’t ‘wins’ for all involved. A healthy, profitable repair industry is important to State Farm and our mutual customers, who entrust their vehicle to you for quality, safe and efficient repairs everyday.”
Avery said State Farm will continue to provide its Select Service network shops with updates as the company’s work on the PartsTrader program continues. “We look forward to working together to make this a successful effort,” he said.
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Any chance that video will be loaded on You Tube so we can see
it?
“Our company’s reputation was built on fairness and square dealing, and we take issue with the way some in the industry have portrayed our organization. We take pride in knowing that this industry has consistently rated State Farm as a leading insurer to work with year after year,” Avery said.
If this is the case then why not let collision shops continue to do as they see fit? The last time I checked the collision shop was not owned and operated by State farm. Yet..........
State farm was one of the best but for the past few years they became one of the worest insurer to deal with they are as bad as Progressive insurance, They are steering, using used suspension parts, changing the way P. Pages read, do not want to pay for maney other needed procedures and when they pay for some of these they are cutting to the bone in other word they under paying the needed procedures, and I attribute that to the way the brown nose DRP shops of state farm are charing . They got the idea if their DRP shops are taking and accepting these short pay why not force evey body to take the same PS.We just got an estimate from one of their DRP shops where they under wrote the car 25% t0 40% whjich would make the car a total loss, I wonder if they are going to supplement the hell out of it and the customer end up with a total loss that will not or can not trad in or sell.
16 likes at 1pm. Seriously?
just more b.s. from avery , wow that guy should be in politics
State Farms Select Service program took a serious nose dive on the last contract signing. The whole process of offering them the best deal on everything does not jive. Doing free total loss evalutions, giving labor discounts, parts and material discounts does nothing for the shop and everything for the Farm. Referrals do not make up for the loss in revenue. Thankfully my company is no longer on the Select Service program and believe it or not we get just as much work. I can't imagine allowing State Farm to dictate how we buy our parts. If you, the shop owner, doesn't like how things are then drop them like a hot potato. The insurance companies will only do what we the shop owners allow them to do.
And the State Farm shops work for $2-$6 less per labor hour for the honor!
Keep whoring us out.
Avery is in damage control mode. If the shops continue to drop SS and the dealers continue to reject parts trader they will back off. Who is going to repair the vehicles, S/F adjusters? This is the opportunity for Dealer and Independent shops to take back the industry. Just say no. We did not sign the SS contract when it switched from service first to SS in 2006, and we are still in business and thriving, with no DRP's. It can be done.
if shops held there ground instead of giving in thinking they will get more work. our industry would not be in the crap it's in now.state farm is trying to do to the parts venders what its been doing to the shops for years,slowly squeezing the life out of a shop or shops that built there buisness on quality and service.fraud is here now more than ever and we the shops ar paying for it. reduced this not paying for that any more,wanting shops to pick up and deliver cars, vac and wash for free. stop giving in!!!!!!
State Farm has got to be one of the most evil insurance companies I know. Since I am in business, they are doing nothing but steer the work away from the shops as well as mine, refuse to pay for necessary work, procedures, materials, intimidate my customers as long as 30 some years ago and as recent as a week ago. If Avery can stand there with a straight face and make the statement about how fair they are and square, he is either brain dead, brain washed or he repeated this lie so many times he now believes it to be truth. And what about their policyholders? Protecting them by screwing shops and customers, including their own for their greater benefit?! If we are to believe him, we may as well believe that Usama ben Ladin loved Americans.
The scarey part about this is we are thinking it only affects State Farm shops.
If it works all the other Insurance Companies will jump on the band wagon so it will affect ALL OF US!!!