WINDSHIELD CRACK REPAIR MARKET OUTLOOK BY ULTRA BOND

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The highest percentage of windshield crack repairs consists of:

1. Stone Breaks
2. Edge Cracks
3. Floater Cracks

An edge crack is one within 2 inches of the edge of the windshield. This perimeter area makes up 15 percent to 20 percent of a windshield's exposed surface area and is subject to residual and induced stress. Residual stress results from the molding and annealing process. It makes the 2-inch perimeter area fracture two-and-half times easier than the rest of the windshield. (See Society of Automotive Engineers, SAE, technical papers 1990-01-3160 and 2002-01-1991 available at www.sae.org)

This area on the windshield  also is subject to the induced stress of installation. Induced stress is the reason this type of damage immediately cracks to 10 to 12 inches. An edge crack is never the result of a stone break because it cracks almost immediately. If on the rare occasion the damage has not cracked, it will as soon as you try to put resin into it.

A floater crack is a stone break-- star break, combination break or bullseye---that has cracked due to exposure to severe temperature changes. It does not usually run to the edge of the glass, which is why it is called a "floater" crack.

The Survey Says....

As the chart below illustrates, I surveyed parking lots in 13 cities, recording the number of  stone breaks, floater cracks, edge cracks, and miscellaneous damages in each lot. In some locations, I also counted the number  of vehicles with damage that had already been repaired. The following numbers are based on the number of repairs per vehicle.

Out of 5,523 vehicles, the number of potential jobs, broken down by type of businesses were:

• For repair and replacement companies - 3, 037
• This figure is based on the number of vehicles that had cracks or stone breaks, or were in need of a windshield replacement.

• For repair only companies - 2,969
• This figure is based on the number of vehicles that had cracks or stone breaks

• For replacement only companies - 843
• Although 843 of the vehicles surveyed were subjectively in need of  a windshield replacement, only 5 percent to 6 percent of windshields are replaced in the United States annually, cutting that number down to a potential 304 jobs.

Whats The Market Potential?

If you want to double or triple your company's market potential, increase your repair repertoire. Only 3.6 percent of repairable damages surveyed had been repaired. Listen to what consumers always say. The customer with a stone break says, "I just don't want it to crack." The customer with a crack says, "I just don't want to replace it."

The average windshield replacement in the Unite States costs $354.00; the average stone break repair costs $50.00; and the average crack repair cost $100.

Many windshield replacement shops think windshield crack repair is going to hurt their replacement numbers. WRONG! State Farm Insurance Co.'s replacement rates remained constant, even though its repair ratio trippled over a 10-year period.

First consider crack repair. Faced with a choice between a $100 crack repair and a $354 replacement, nine out of ten consumers will choose the lower-priced option. That is why I have a 93% percent repair ratio. I can repair three cracks in the same time it takes my technician to do replacement.

My gross profit, based on the time it takes to do  a crack repair vs a replacement is $297.00 for the crack repairs versus $165 for the replacement. Repairing stone breaks prevents floater cracks that can lead to windshield replacements. However look at the percentage of stone breaks that actually turn into floater cracks. In  the chart above here, just 121 out of 2,323 stone breaks turned into floater cracks. It would take about 20 stone break repairs to prevent one replacement, according to my study.

Let's do the math. Twenty stone breaks repairs yield more than $1,000 in gross profits. Compare that to the $150 to $200 gross profit you'd collect on one replacement.

Survey the parking lots in your area to see how many stone damage repairs it takes to eliminate one replacement. If one out of the three stone breaks has cracked, it is almost a break-even. If the ratio is one out of four or higher, then repair is more profitable. Every area will be different. The most I ever saw was one out of 10 in Denver.

The windshield repair market is more profitable and 10 times larger than the replacement market. A repair and replacement company that embraces all job opportunities expands it market potential and better serves the consumer. If you think consumers don't like lower-priced alternatives, check out Wal-mart.

NWRA President's Column: Richard Campfield's The Crystal Ball....