3M & NGSG Form an Alliance

FYI. Just thought I would keep my TintDude friends in the loop.

Contact: Michelle DeFouw
Public Relations Manager
National Glass Service Group
400 Metro Place North
Suite 300
Dublin, OH 43017 Phone: 866-846-9883

Fax : 614-652-3608

pr@NationalGlassServiceGroup.com
www.NationalGlassServiceGroup.com
National Glass Service Group
Press Release
3M and National Glass Service Group Form an Alliance
Dublin, OH – July 13, 2009 –

3M and National Glass Service Group (NGSG) announce the formation of an exclusive alliance to market window film solutions to large national retail chains. Through this agreement, NGSG will use 3M products and dealers exclusively while 3M will concurrently pursue all national retail accounts exclusively through NGSG. Both NGSG and 3M believe that this relationship will allow both parties to concentrate on their strengths in order to provide the highest quality products available with unparalleled education and servicing of these retail clients.
Patric Fransko, Senior VP of Operations at NGSG is excited about the potential that this alliance with 3M represents. “After coming to NGSG, I have spent the past year with our retail clients trying to understand their needs and expectations. It quickly became clear that confidence in the product supplied, and the company supplying that product, were their primary concerns. We had built systems to ensure the logistics of getting jobs completed efficiently and using a 3M product gave the client an immediate comfort regarding the quality and engineering of the products being used.”
NGSG owner Haytham Elzayn noted, “This was not an easy decision for us initially. We were being courted by multiple window film manufacturers to form a similar alliance, but the synergy was just not there. Initially, I was convinced that NGSG was stronger by remaining independent of any particular manufacturer. However, after meeting with 3M and gauging clients’ responses to the strength of the 3M brand and product offering, our decision became clear.”
Charles Calisto, National Sales Manager of 3M’s Renewable Energy Division, expressed similar enthusiasm regarding the new alliance. “We are very excited about working with NGSG. They have quickly made a name for themselves in the retail chain segment and we feel confident that the 3M / NGSG team will educate retailers about window film solutions, provide them with the best products available and implement chosen solutions in the most efficient manner.”
Details of the final agreement are confidential, but the alliance is already paying dividends as NGSG and 3M are working on numerous large projects around the country with major names in the retail industry.
National Glass Service Group specializes in glass related film solutions designed to assist large retail chains with energy savings, loss prevention, glass related designs and graffiti mitigation systems. www.NationalGlassServiceGroup.com

So you guys are now a 3M National Accounts Dealer with an installer network?

hopefully that prestige works out for you guys
just kidding

and we all know how that works of course

Actually, we are more of a project management company that focuses on glass related film solutions for large national retail chains. We work through existing dealers to get the work done for our clients. The dealers in our network all run legitimate businesses, (W9, Liability insurance, etc) and sign a contract with us that they will not disclose who they are working on for us nor try to go direct to those clients. We now are exclusively using 3M products and the 3M dealer network to take care of these clients. It simply came down to 3M wanting to work with us and our clients having a high degreee of comfort with the 3M name. Say what you will about 3M, when I am in a large retailer speaking to the VP of facilities for over 4000 locations, they know 3M. That cannot be said for any other film in the industry. That is not to say that other films are not good quality, that is just the field that I am playing in.

and....that's not to say that the film they're choosing IS good quality. they don't know....they just know the name. would these VPs of 4000 locations like to deal with a manufacturer that makes 4000 different products (including film) or deal with a manufacturer that focuses exclusively on window film? i honestly don't know how those types think. i just know how i feel about it. but i guarantee i could sell the job to them with other film options.

The name works good for what you are trying to accomplish. Project management is something overlooked in our industry. I've said a lot about big red and I'd rather take the challenge with the underdogs.... right now I am talking to one VP that is trying to get 3M off of all of his locations, he's not too impressed with the name anymore. You're a smart guy patrick, I'm sure it will work well for you.

I disagree with your suggestion that if a company makes 4000 products (they actually make 55,000 different SKUs) that their window film will be of a lower quality than a company that focuses on window film. It can be argued that the reason a company has grown to $25 Billion in annual sales with 55,000 SKUs is that they have a track record of doing more things right than wrong. Notice in my response above that I did not say that they are the only manufacturer of quality products. In my experience in this industry, there are a handful of companies that are making solid offerings. I would place 3M in that handful. In addition, their name recognition and consumer confidence in that name would eclipse all the other film manufacturers put together. As far as your sales ability, I cannot dispute your claims as I have never witnessed you selling. I have sold many other film options to these corporations also, so I do not see your point there. What I was saying was regarding the client recognition of the brand and their comfort level with it. Truth be told, many outside our industry have a negative perception of window films because of all the sins committed by manufacturers, distributors and installers of the past. Many view window film as "snake oil" because they have either had or heard of a bad experience. Using 3M products gives immediate credibility to the product you are offering and quickly moves the discussion past whether the product is legit or not. Again, that is not to indicate that other manufacturers do not sell quality products, but if the client does not know their name, the entire process becomes longer and more difficult.

Thanks vclimber. It was a tough decision, but after weighing all factors, I feel that it was the right one.

true... it can be argued that way, but i'll still take the company that focuses on film only. and i know they make a ton of products i just used 4000 as a number since you used it for locations.

and i'm just saying that it could be false credibility.

either way....like VC said...i'm sure you'll do well. and i'll stick to what i do well. (without 3M)

Thanks blade. We all have to make the decisions that are in the best interests of our company.

And Im excited about it. All the R&R work that will prevail in just a few short years!!

How come 3M hasn't issued a PR?

How come 3M hasn't issued a PR?
[/quote]

The one that went out from us was reviewed by them before it went out. I am unsure when / if they will be releasing their own.

That's globalisation - like told our teacher K. MarX. Globalisation is the way to price rising up. And so on.
Commy Leo

I was waiting on your comment Leo. I knew that you would not let me down.

Actually, I would like to offer 3M film. I have lost some customers that just want 3M, nothing else, they seem like brain washed, sometimes I wonder if they even have a brain...

Good luck Patric, 3M is defenitely the best choice as far as brand recognition, which is what you need...

Thanks.

And Mr. Chaves can't do anything with that?
This is just capitalist infection - like Coke

well guys, either way this industry is going to see a huge boom by the end of this year." cap and trade" brace your selves.

dear patrick, i have been installing 3m film for 10 of my nearly 20 yrs in this biz. 3m safety film (S series and Prestige) are very tricky films to work with!!!!!!!!!!!!!!!!!!!!!! be sure the installers are well versed with 3m films. many installers dont like using 3m because of the inconsistencies with quality and difficulty installing. plus its not very affordable for most.3m thrives based on name alone.... and the tear resistant material its made with. i install presitge s&s all day long and the look and heat reduction are excellant. with that being said pay your installers well and good luck

Correct me if im wrong but it looks like 3m is trying to dig its nails into the glass business seeing that the window film business might not be going so good for them or strong. I would not be surprised in the future you start hearing names such as "3M window glass company"

Congrats, sounds very promising.

That will be sooner or later.
N1 is to create GOOD brand.
After that - You can sell anything under that brand

Patrick,
the unfortunate truth to this is that another large company has probably bought its way into this. The 'large company' logo does ring with familiarity with the end user, however, by becoming exclusive, you also do your customers a dis-service. There are many products that 3m does not supply in the film game. Therefore, your customers have only two choices, go with the only company you will work with or look elsewhere for the product they need. As we all know, many of the mmm lines are not even manufactured by them (ie most of their decorative lines) so, are your customers actually getting 3m?? The answer would be no. By going exclusive, you afford your customer only one choice, of which many would say is not the best choice. In my state, the only mmm dealer is exessively overpriced and, as many have told me, not very service oriented. Sq ft priceing is 2x what the average is for our market. Minimum pricing to go out for small installations is 2 to 3 times what all other companies charge. Is this giving your customers the best choice or is it the easiest for you? I would say the latter. I am in the process of doing a R/R on a commercial building that was filmed with mmm not too many years ago. (was shown the invoice for it) All the film failed. IMHO, not putting jobs out to bid is a dissservice to your customers, and, to tell the truth, what could ammount to price gouging. Most mmm dealers are more expensive to start (due to product pricing) for equal product quality. You could have still offered the mmm line along with others to give your customer a fair representation of the industry which allows the logo useage along with fair pricing offer. Not trying to bash you, but we all see what happens in other markets when these exclusivity contracts begin.

I say good luck in your venture and lets see what the future holds....


Dan

We will be utilizing all 3M installers, so we should not have any issues. The best part about this alliance is that it is a win for NGSG, a win for 3M and a win for the 3M dealer network. Looking forward to working with all of you.

You lost me. This is not really glass related at all. We focus on window film solutions. We do offer glass replacement, but only as an added service to our retail clients and 3M has no involvement in that part of our business.



Thanks Larry.

Dan

I will try to address all of the issues that you raised. First, I cannot get into the details of the agreement, but I am not bound to 3M if they do not offer a suitable product for the client's needs. The agreement is exclusive regarding any products that 3M offers that would be considered a comparable. An example would be that we offer our clients glass replacement service. 3M is not involved in glass, so that does not apply to this agreement. As far as working with the 3M dealer group, my experience is not at all what you are describing. I have found them to be easy to work with. My pricing to my clients has not increased since we switched to the 3M product exclusively, so they are not being gouged. As far as giving my customers a fair representation, I feel that I am. There are several companies in this industry that offer good quality product. I would place 3M in that group along with several others. In the end, I am offering my clients 3M product, which they feel more comfortable with, at the same price as I would offer them the other lines that they had never heard of. I really do not think many of the things that you raised apply to this agreement or my relationship with my clients, but I respect your opinion. That is what this forum is all about. we are all free to run our own business as we see fit. This was a decision that I made after carefully considering all the options. It may not be right for everyone, but I feel that it was right for me.

Thank you for the good lock wishes. Good luck to you as well. In the end, my focus is growing the industry. I have no interest in stealing work from other manufacturers or companies. There is enough work out there for all of us. I am focusing on bringing new business to the table.

Patrick,

I just read the article in WFM from a couple months ago.... since you are now using the 3M dealer network, does that mean anyone you may have used in the past, who is not a 3M dealer, you will no longer be using?


-R

The nature of the contract is such that we will only be utilizing the 3M dealer network for the installations. In some cases that may result in us no longer being able to use a company that we had used in the past. This agreement is a true win for the 3M dealers as we are bound by the contract not to compete with them on any business that they are doing, but we will be using them for all installations on the business that the relationship generates. There is no way that a 3M dealer can be hurt by this agreement. The only result to them is a potential of new business coming to their table. Charlie Calisto and I worked very hard to ensure that the 3M dealer network would be fully protected and that is only proper given the nature of the agreement. I would be happy to answer any questions that I am able to regarding this agreement.

I want to mention one additional thing to those concerned about the nature of the agreement that are 3M dealers. I have been working on numerous jobs all over the US with 3M dealers lately and all have been terrific to work with and pleased with the details of working with NGSG. I have yet to speak to any of them that have been disappointed that I called them with a job or the amount they were paid to do the work. I know that some people that I have not had the opportunity to work with may be uncertain about this new relationship, but I would encourage them to contact me and I would be happy to discuss it with them. This is truly a situation where 3M, their dealers and NGSG all win.

Thanks for the info. My concern was more for those guys that are not 3M dealers that used to work with you.


-R

I know you can't go into details because you are bound by contract. That is what is so fascinating about PR's, you have to read between the lines... So from what has been said it seems as though the 3M dealers are nothing more than contracted installers and possibly hired measurement takers?

Not true at all. They do take measurements, but then also complete the install at rates very near what they would normally charge. NGSG is facilitating the installations as a conduit with the large retailers that we work with. Most of them simply would not work with numerous dealers all around the country to get the work done. They want to work with one company that has the ability to implement the desired solution across their network. NGSG is that company. We subcontract all the installs out to the 3M dealer network at an attractive rate for them and we will the corporation. The dealer gets paid in 30 days and we handle all the paperwork with corporate. In many cases, we are paying the installer in 30 days even though we do not get paid for 45-75 days. We make it easy for the retailer to get film work done across their network and easy for a dealer to work on national projects. Both the retailer and the dealer win. Ask the one dealer in Florida that just did two jobs for us and invoiced NGSG roughly $20,000 if he is happy to be working with us. In the second half of 2008, we paid one dealer nearly $100,000 for the work they did for our company. Believe me when I say that no one has complained about getting a call from NGSG.

It is unfortunate that may happen in some circumstances, but we had to make a business decision based on our view of the future. I truly enjoyed working with all of those dealers and wish them the best moving forward. We did some good business with some of them, so I hope there are no hard feeling going forward.

I see the advantage on the finance side. You guys have the rough end carrying net 45-75. Most large companies want one point of contact that makes sense too. I remember when 3M had dealers running around as "reps" for them doing something similar to what you are doing, they eventually shut that program down. Did you ever hear about it?

I do know about that. The reps tasked with this had many other roles as well and to keep up with the logistics of handling these retailers is a full time job. It does not surprise me that it was not successful if it was not a focused effort.

Patrick is NGSG or its affiliated companies helping or working with 3M on a wider assortment of their IPP system? And who would be used for an install on an IPP type of job. Would it be 3M IPP or pentagon?

At the present time, our sister company is not working with 3M on additional selections of IPP, but 3M is aware of their offerings. Since Pentagon Protection USA is a sister company of NGSG, I am not fully aware of everything that they have going on in detail. Regarding what type of attachment would be used on the jobs that are installed through NGSG, thus far we have given the dealer and option of 3M IPP or Pentagon. There are situations where one or the other makes more sense and we ultimately want the customer to get the best fit for the situation. I hope that answers the question that you asked. If not let me know.

Well 3M made their own reverse PR in response to your PR Patrick. I know a lot of their old guard dealers, 3M should have spoke up 1st and broke the news -imo. You've got your work cut out for you, I'm sure a lot of people will be watching to see how this unfolds.

Thanks for your response Patrick regarding my question; I see you are not fully aware of my question so I guess others will have to wait to hear on this.

They cc'd me on the response that they sent out to their dealers, so I am well aware of what it says. It does not contradict our press release in any way. Our agreement with 3M is to go after 50+ location retail centers exclusively and do all the installs through the 3M dealer network. Our agreement also states, and I totally agree, that 3M will assist and promote all of their existing dealers in any business they are trying to land. What 3M will not do is approach these 50+ location retailers with their turn-key program or any other company similar to NGSG. However, if an existing 3M account is going after one of these accounts, 3M will support them, and they should. In addition, if a 3M dealer is working with an account, NGSG has agreed to in no way attempt to pursue that account. I really so not understand why any of the 3M dealers would be upset, They are protected on all sides by this agreement. I cannot approach any business that they are doing or are trying to land, 3M will assist them if they are trying to land any of said business, and they will also get the benefit of doing all the installation work for any business that the 3M and NGSG alliance brings to the table. That sounds like a great deal by any measure.

The fact is that many 3M accounts have already worked with us and are thrilled with the program. Since the news broke, many more have called to make sure that they are properly set-up with us and expressed excitment about the program. There have been some grumblings, but there always are when a new program like this emerges. I have yet to speak personally with anyone that does not like the program once it is fully explained to them.

I see what you are asking now. At this time that is not happening and I have not been involved with any discussions along those lines.

I wanted to clarify a couple of additional things fromyour post. The 3M email was not a retraction of anything that was in the NGSG email, but a clarification regarding some questions / concerns that had come up. Also, none of the 3M dealers are obligated to work with NGSG. That is their right as a business owner. I do not want to fight with anyone to put money in their pockets. I think most will find the work lucrative and want to be involved.

hey patrick, i wont put up a fight if you want to put money in my pockets i live in central fl. have tools will travel if you need experience on installation projects

this thread has lost me.

Sir what is 3M's involvment again with NGSG?

Now that is funny!

so how do i get a piece of the pie guys