Tuesday, January 22, 2008

Thoughts About Columbus

Last week’s news on glassBYTEs.com™ of the renaming of Belron's purchased chains to Safelite goes to the heart of the issue of branding (CLICK HERE for story. These boys from Belron are serious about establishing a national brand for themselves. Get used to it.

This is the first time in my recollection that a company has gotten this far and along with size has tried to go "public" and make its name known to national consumer audience. It is using niche cable advertising and getting its name out as far as public awareness.

I can quickly think of two reasons for the increased advertising. The obvious one is to acquire more cash customers; the second one is just to have name recognition as there will be more pressure from legal and industry groups to reveal the financial relationships that exist between insurers and Belron through its claims management arm. As proof, please note how Erie Insurance changed its phone script for disclosure purposes (CLICK HERE for related story). By advertising, Safelite wants potential customers to be reassured that they are indeed national in scope and the best choice for consumers. I believe that there are more than a few of us in the retail side of AGR that feel differently and will argue forcefully that point.

First of all, Belron/Safelite is a competitor to be respected as well as feared by some. It has a national presence. It has a unified purpose as well—a common voice through lobbyists. public relations and legal teams. In short, as a corporation it is organized, fairly self contained and has a goal to be the biggest and America's first choice when it comes to auto glass.

Throughout America many, many Davids exist to this corporate Goliath. I'll also bet that every owner feels that he possesses some trait to compete within the marketplace. You do it by being smart, flexible and knowing your strong points.

For those who are historically interested, no single corporate shop has ever gained control of the American market. I have no crystal ball and have no idea what the AG market's landscape will look like in 10 or 20 years, but I will offer up an observation about European ownership of other American companies. Mercedes came in and plundered Chrysler and sold it off and stripped it of its assets. Siemen's American-born executives have very little respect and power when compared to their German counterparts.

It has been said that the "seeds of one's destruction are contained from within." I have felt for some time that as an owner I must be pro-active and not just reactive. I also feel that there is not one of us out there that has not started out wanting to create a business the magnitude of Belron/ Safelite. I would not be generous to my competitors nor would I expect that trait from them as well. Tip your hat to them for what they have accomplished to date and work your tail off to beat them.

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