News
Be American - Buy American
Newsletter – Friday, May 15, 2009
Almost 40 years ago, Bill Tuscano started the W. N. Tuscano Agency with a loan from his father and a belief in the local independent agency system. He also believes in the two party political system and the ‘Be American - Buy American’ principle. Poor Bill – his world and ours is being turned upside down.
At first, I was really angry when I heard the news that GM and Chrysler intend to close hundreds of their small market dealerships. My first thought was they were eliminating competition in order to save their corporate butts. Then I read a little further and learned that some dealers are out of trust - that is, the revenue they generate from the sale is not paying off the debt to the manufacturer for the car they sold. Whether Detroit is over-represented or unprofitable, domestic auto sales may be changed forever.
One obvious dilemma with cutting the number of dealers in a market is the capacity problems it will put on service and repair departments. Can you imagine having to wait for a month for a scheduled maintenance or a week before they can repair a malfunction? It sounds like Canadian style healthcare to me. I am no economist or expert on the auto industry. I am just a middle class guy who has bought several domestic cars over the last few years. I like having options. I like having a relationship with a dealership. I like it when they know who I am and what I expect when I come to buy a car. And doggone it; I like it when they drop their price! The more I write about this, the more I think this is not that different from the retail agency system. You tell me what is better - choice or stability?
Sometimes I get frustrated when competitors open shop in ‘my state’ (OK, I know it is not my state but I feel like I have rights by merit of residency and longevity!). I get angry when my carriers appoint my competition. Though just like you, I am not in a position to change this. All I can do is control my own operation and lead according to our core values – personal responsibility, teamwork, integrity & honesty, innovation, and of course, outstanding customer service. Think about it. If we do all of these things, then there is no good reason we won’t be around for a long, long time. When you want to work with a broker that will listen, treat you as a valued customer, and give you great service, please give us a call!
Ranting aside, I want to remind you of some of the great things happening here at Tuscano. Remember, we have a new monoline Work Comp market that is very competitive. We have a new program for residential remodeling contractors that should be a huge hit. Essentially we have bundled all of the common classifications that the small remodeling contractor will perform - carpentry, drywall, electric, plumbing, outdoor decks, etc. - and put them into one class. Minimum Premiums start at $550 for $1M/$2M limits. We have been very successful lately writing hotels and motels and mixed occupancy habitational properties. Don’t forget our personal lines department. Yes, we can compete with the national carriers and direct writers!
I like to tell people we are not too big that we don’t pay attention to what goes on in our day-to-day operations, and we are not too small that we can’t make things happen or get our carrier partners to work with us.
As Goldilocks says – we are just right!
At first, I was really angry when I heard the news that GM and Chrysler intend to close hundreds of their small market dealerships. My first thought was they were eliminating competition in order to save their corporate butts. Then I read a little further and learned that some dealers are out of trust - that is, the revenue they generate from the sale is not paying off the debt to the manufacturer for the car they sold. Whether Detroit is over-represented or unprofitable, domestic auto sales may be changed forever.
One obvious dilemma with cutting the number of dealers in a market is the capacity problems it will put on service and repair departments. Can you imagine having to wait for a month for a scheduled maintenance or a week before they can repair a malfunction? It sounds like Canadian style healthcare to me. I am no economist or expert on the auto industry. I am just a middle class guy who has bought several domestic cars over the last few years. I like having options. I like having a relationship with a dealership. I like it when they know who I am and what I expect when I come to buy a car. And doggone it; I like it when they drop their price! The more I write about this, the more I think this is not that different from the retail agency system. You tell me what is better - choice or stability?
Sometimes I get frustrated when competitors open shop in ‘my state’ (OK, I know it is not my state but I feel like I have rights by merit of residency and longevity!). I get angry when my carriers appoint my competition. Though just like you, I am not in a position to change this. All I can do is control my own operation and lead according to our core values – personal responsibility, teamwork, integrity & honesty, innovation, and of course, outstanding customer service. Think about it. If we do all of these things, then there is no good reason we won’t be around for a long, long time. When you want to work with a broker that will listen, treat you as a valued customer, and give you great service, please give us a call!
Ranting aside, I want to remind you of some of the great things happening here at Tuscano. Remember, we have a new monoline Work Comp market that is very competitive. We have a new program for residential remodeling contractors that should be a huge hit. Essentially we have bundled all of the common classifications that the small remodeling contractor will perform - carpentry, drywall, electric, plumbing, outdoor decks, etc. - and put them into one class. Minimum Premiums start at $550 for $1M/$2M limits. We have been very successful lately writing hotels and motels and mixed occupancy habitational properties. Don’t forget our personal lines department. Yes, we can compete with the national carriers and direct writers!
I like to tell people we are not too big that we don’t pay attention to what goes on in our day-to-day operations, and we are not too small that we can’t make things happen or get our carrier partners to work with us.
As Goldilocks says – we are just right!