PartsTrader: State Farm Collision Parts Bidding Process

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.

Aaron Schulenburg, Executive Director, SCRS

Impact of Parts Bidding: From SCRS

SCRS-Bob-mccoy: SCRS Interview with Bob McCoy of the Motor Trade Association of New Zealand

Hammer n Dolly May 2012 FAREWELL TO PARTS PROFITS: May Cover Story in Hammer & Dolly

Commentary by Scott Biggs

One Response to PartsTrader: State Farm Collision Parts Bidding Process

  • DOMINIC SALAMONE says:

    my shop is in st louis and i happen to be the only shop in st louis that said no to parts trader,im all by myself trying to take on the battle,it seems as though all the shops here in st louis dont beleive in them selves enough to stay in business with out the help of insurance companies sending them customers.ive been in business now for 35 years and i was one of state farms largest repairers,about 40% of my business,for years i have had great relationship with them and i hate to see it go,am i taking a big risk? yes i hope and pray that my reputation will keep me afloat good lord willing and the creeks dont rise.parts trader was just mandated here in st louis this november 2013 so its been just about two months for me being the only man out and to be truthful i havent a clue yet as to how its all going to pan out for me.im a hard headed dago that has learned over the years with tears that what goes around comes around and sometimes it takes time to see it and sometimes you dont live to see it but in this case im afraid that the shops that dont have a core of customers that have to stay on the train will not be around much longer,i give it a year or two and most little guys will be gone. this not going to go away unless it gets to the media.im almost sure the shops that are on it that felt that they couldnt live with out it would love for it to go away ,its going to take the brave to get the ball rolling and i think they will fight behind closed doors(i hope). most shop owners like me dont have a education and that is what hurts are industry thank god i grew up the hard way ,i always wish i went to school but now i know why it wasnt my calling.i grew up on the streets and it was a arm for a arm and a leg for a leg, get respect by demanding respect in what ever way you see fit. i realy dont think that the shops realize what they are in for,in the select agreement it says that they will come after our paint distributors next and what it doesnt say put on your seat belts the consolidators are going to knock you out of business if you keep drinking our cool aid. i wish everbody in the industry well ,please feel free to contact me you will be gald that you did

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