The following is a special message from Aaron Schulenburg, Executive Director, SCRS on the State Farm Collision Parts Bidding Process
Hopefully, most of you have seen the various information produced by SCRS that outlines concerns over the State Farm parts bidding process currently being testing in Grand Rapids, MI, Tucson, AZ, Charlotte, NC and soon to be launched in Birmingham, AL.
This was the talk of all meetings SCRS participated in while in Oklahoma City last week. In fact, during the SCRS public board meeting, we directly asked representatives of State Farm “if the collision repair facilities don’t like or support the process, if the vendors don’t like or support the process, if the part manufacturers don’t like or support the process, would State Farm continue to roll it out without industry support just because they could?” The answer was “yes. ”
In fact during another public discussion State Farm representatives urged paint jobbers to “calm their repair customers down,” claiming that SCRS has involved themselves in an area that is really between them and their Select Service shops, and has created unnecessary hype with misinformation.
There is no misinformation here folks, and this issue is much bigger than just State Farm and their contracted shops. In fact, State Farm has stated in written communication to suppliers (not under contract with them) that “All orders related to State Farm claims from Select Service repair facilities will be placed via PartsTrader. In addition, repairers are able to use PartsTrader to seek quotes and place orders for repairs not related to State Farm.”
We have shared the information we have received directly from repairers, manufacturers, suppliers and dealers in the market areas where this is currently taking place, and I can tell you, the only people who disagree with the analysis is State Farm.
There is still time for you to get educated about what you will face, time to educate dealers and suppliers, time to encourage your state dealers associations to get engaged in this issue, and time for the industry to decide if we have finally had enough of other entities interjecting themselves into our business with unreasonable and invasive mandates.
Please take the time to read all of the related information linked below on this important issue.