AASP/MA to host parts procurement session at upcoming state meeting

Jan. 1, 2020
The AASP/MA will be tackling the parts procurement issue head-on with a panel of national industry representatives.

The Alliance of Automotive Service Providers of Massachusetts (AASP/MA) will be tackling the parts procurement issue head-on with a panel of national industry representatives in its upcoming statewide meeting, September 12, in Marlborough.

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The evening will kick off with a dinner, followed by a collision industry training presentation at 6:45pm by Toyota Motor Sales USA, Inc. (facilitated by Wholesale Development Manager Jerry Raskind and Toyota Collision Consultant Rick Leos).

A panel of industry experts commissioned by AASP/MA will be providing an update on the parts procurement issue, including the latest developments with State Farm’s controversial PartsTrader program as well as the industry’s reaction to parts bidding – both here and overseas.

AASP/MA President Rick Starbard will be joined on the panel with Raskind and Leo, as well as Aaron Schulenburg (executive director, Society of Collision Repair Specialists [SCRS]), Tony Lombardozzi (president, Coalition for Collision Repair Excellence [CCRE]), Gary Danko (Connecticut wholesale parts representative, Balise Auto Group).

“The insurance industry has attempted to present parts bidding programs – most notably, PartsTrader – as so-called ‘win-win’ situations for all parties involved,” Starbard says. “In looking at these programs in-depth, we fail to see any ‘win’ for anyone but the insurance industry. In a state like Massachusetts, where our only real profit margin is derived from parts markup, programs like the one State Farm is attempting to introduce could have devastating effects. We’ve set up this panel to not only educate members on the parts bidding issue in general, but also to give a wake-up call to those who think it can’t happen in Massachusetts.

Parts procurement is not a DRP issue; it’s a profit issue. I encourage any repairer who is concerned with maintaining profits in his or her shop to attend this meeting; it will be an eye-opener.”

“I am really looking forward to the opportunity to have some thoughtful discussion with the members of AASP/MA,” adds Shulenburg. “I believe the association’s decision to host a panel that will offer perspectives from all sides of the industry that will be impacted by these types of insurer-mandated programs is a great one. The discussion will be interesting, to say the least, and I wouldn’t think of missing the opportunity to participate. If you own a shop or are concerned about the future of your business, you shouldn’t either!”

“I believe the more communication and information exchanged on this issue, the better,” notes Lombardozzi, who will also be facilitating three upcoming CCRE training sessions for the association beginning on September 15. “Around here, I hear some people saying, ‘State Farm doesn’t have Select Service in Massachusetts, so PartsTrader won’t affect me.’ WRONG. As soon as State Farm and PartsTrader are successful in one market, it’ll only be a matter of time before other insurers take the lead with similar parts procurement systems.

Programs like PartsTrader could very easily make their way into Massachusetts and beyond, and so it’s critical that we educate as many people as possible on the fact that parts bidding is a real threat to our livelihoods. I look forward to addressing the AASP/MA crowd both in our panel and in our upcoming ‘shop transformation’ seminar program (to be held in three Saturday sessions over a 10-week period), and to hopefully continuing to hammer home the importance of being proactive rather than reactive.”

Registration for the AASP/MA September statewide meeting begins at 5:45pm on September 12. Cost for current AASP/MA members is $27.50, $55 for non-members. Pre-registration is required; to register or for more information, please contact the AASP/MA Administrative Office at (617) 484-0205.

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