Published October 29, 2024
Belron, Boyd & the Auto Glass Repair Market: Vertical Integration Threat
inpractise.com/articles/belron-boyd-and-the-auto-glass-repair-market-vertical-integration-threat
Executive Bio
Former Collision Repair Manager at Tesla
Interview Transcript
Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.
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You've managed body shops at both Tesla and now at Toyota. I'm curious to hear from you, as the first question, how has glass repair evolved over the past 10 years? How important was it, and how has it changed over time?
I pay out $9,000 to $10,000 monthly to a glass company, making only about 10% profit due to these limitations. A lot of our work is warranty work and warranties, we can't mark up any sublets. So anything that we sublet to another company, Toyota doesn't allow us to mark it up. So I make zero on it. So I'm paying out a ton of money on these. Whereas, if we handled glass work in-house, we could make 67% to 68% on labor. For instance, on a Prius, glass work might take 12 to 13 hours at $62 an hour. Currently, I pay around $700 with zero markup, which isn't sustainable.
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In which cases are you allowed to mark up the glass repair job?
If a customer is paying out of pocket or through an insurance company we don't have an agreement with, we typically charge a 20% to 25% markup. Additionally, many glass companies, when dealing with ADAS technology, lane departure, and other systems, need to recalibrate cameras 99% of the time after replacing or reinstalling glass. These companies often do the calibration in-house and charge for it, which can cost $400 to $600 for a windshield on some vehicles. So, yes, there's a lot of opportunity there.
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