XPEL Moves Out of Texas.

October 1, 2014

Atlanta’s center was an existing shop that we acquired as a result of the previous owner’s interest in working for us. The shop was called Iconic Applications and Kevin Wallace, who was the owner, is now the XPEL Area Manager. The primary function of bringing this facility on board is to establish a base of operations in an area that has been seriously underpenetrated for a long time. Of the 38,000 new cars sold each month in the Atlanta area, XPEL was being installed on less than 20 of those and most of those were done by the shop we acquired. Having someone from the Atlanta area now representing XPEL will allow us to grow our footprint in an orderly way that will avoid conflicts between future dealers.

We have no operations in LA or Chicago, and currently have no plans to.

pro-tect mobile · October 1, 2014

Tim that's great and all but I was told you didn't have any plans in Houston either by someone in San Antonio. Then the next thing you know there is a shop in Houston. I called that guy out on it here recently and got a little bit of a run around by playing word games with me... something I would expect from a politician. Say what you want but you solely have the stock holders interests at heart. Your word is not going to hold water with me as I know for a fact if you could see a way to take all of the installation business your company would. To say that's not the "current plan" is well... a lie. I was told the same exact words about Houston and just recently about Dallas.

What really pisses me off is that there are installers in those areas that promoted your film and was told they would not be undercut or moved in upon. Then here it goes. So they promote your product and you take their business. Nice. I don't know how you guys sleep at night. Well I can promise you I know quiet a few installers that have contacted me about this and they will no longer be carrying your product nor promoting it. I know I wont be... not just because of this but I believe the Suntek product to be BETTER and they are a pleasure to do business with... where I have seen a level of arrogance at the San Antonio location that astounded me. So good luck with your expansion. I will be printing this post out so that once you have expanded into the locations you just stated that you weren't I will have it in writing. Typical big business.... step on the little guys to build yourself up to please the stock holders.

XPEL Jeff · October 1, 2014

The way we please our stockholders (many of which are installers), is by offering the best possible product and serivce we can to our customers (the installer), which turns into successful sales, driving the stock price. We got to where we are by helping the little guys become bigger successful ones. I can't tell you how many people that we do business with started from scratch and now buy 5, 10, 15, 20+ rolls per month! In fact, the reason I am still in this business isn't because I am just that passionate about plastic film, it's because I love hearing the success stories from people I trained in the past. It's pretty gratifying when people call up and land their first big account, or tell you that they just had their best month ever. If we do our job right, all XPEL installers benefit, and that will never change.

Those of us that know us well, know that XPEL was started much in the way many of your companies were, two guys sharing a small space with a detail shop just trying to get by. We haven't forgotten that. It was us that stuck by the independent installer when the film companies we used to represent started going direct to the dealership, cutting independent installers out of the equation. We know that the installer is the most important part of the equation. I'm proud to have built a business based on helping installers. I've personally walked into dozens of dealerships with our customers (just as our other reps have), trying to land them business, so you can understand why I am a little offended that anyone would try to paint us in a different light.

I don't think it is a reach to say that the people that are concerned about this heard about it from rumors or innaccurate information on tintdude, rather than any actual fact. The fact is we are helping to grow everyone's business. Give us a chance to show you how we can build the demand for all XPEL installers in these markets.

People installing XPEL film have nothing to worry about. A film company would be foolish to compete with their existing installer base. The markets we are in are markets where people were not actively promoting our product.

Just to clear up some of Pro-Tect Mobile's concerns:

- As mentioned before, the markets we are in are markets where people were not actively promoting our product, but installers of all brands of film will benefit from our efforts in that market. The ones using XPEL will be the ones that will get direct referrals and assistance from the local rep on landing dealership accounts, whereas the ones using other brands will benefit from a general increased awareness of ppf.

- We charge between $1700 - $2000 for full fronts. That's hardly undercutting by almost anyone's standards.

- We charge our install shops for film, just as we would any other installer. There are no special deals.

- Shop managers also function as local reps for any other XPEL customers, helping to land them business. A perfect example of this is that we just gave one of our dealers in Houston the Momentum Volvo account.

- As Tim mentioned, the owner of Iconic came to us and expressed a desire to make his shop an XPEL shop, so he could focus on growing the business and doing installation, rather than billing and paperwork. A change of ownership is all that happened, there isn't a new competitor, just a new push for growing the market. We are not actively looking to buy out install shops, but if some one comes to us in a market where we have no presence, we'll entertain it. That goes for any of you.

- In the case of Houston, we did not have any intention of opening a shop there, but we were contacted by Porsche of North Houston and Lamborghini of Houston who had seen our work in San Antonio and said that they would give us all of their business if we would look into opening a location there to service them. Giving us access to these vehicles for patterning purposes made this something worth considering. This account wasn't being serviced by one of our customers, and our nearest (and only) dealer in Houston at the time was so far away that he couldn't service them, so we ended up opening one there. So, Tom, If I asked you if you were currently servicing Plano Porsche and you said no, but they called you the next day and wanted you to start doing work for them, that might change the status, no? It is no different when an installer contacts us wanting to be bought out, or a dealership that doesn't have access to an XPEL installer calls us with interest.

- Not only have we not taken business from our dealers where this experiment started in Houston (we have more that have come on board since we opened there), we have spent tens of thousands of dollars promoting their business along with ours. I can tell you that the one shop that was in Houston before we opened is doing a lot more business now than he was before we opened up there, not even factoring in the dealership we gave him. When we work the Houston Auto Show or the Houston Grand Prix, we invite all of the area installers to come prommote their business for free, as well as pass out postcards with EVERY shop's location listed on it. We are trying to promote XPEL as a brand name and drastically increase the awareness of ppf in the area.

As I mentioned before, we are a company of installers trying to help installers. A few things we've done over the years to help people run their businesses:

- First company to produce 60" film

- DAP was the first program to offer full hoods

- Biggest pattern library with the most options

- First company to develop a self-healing film

- First company with a dealer locator

- No company does more events to help drive referrals to installer base

- Offering free customizeable sales menus and profit sheets

I think you'd be hard pressed to find any way that we have damaged the ppf business. To all of the XPEL installers out there, please don't let rumors and misinformation concern you. Feel free to call us, as we're more than happy to be transparent about our plans for growing everyone's business.

P.S. Todd and Jaime, you guys owe me a beer at SEMA for having to spend 30 minutes of my day typing this. And stop listening to animals, they often have bad information.

Supreme · October 1, 2014

Very well put Jeff and goes to show there is always two sides to every story!

I for one am amazed at how Xpel works and it is a shame more companies aren't like that and im not just talking in the PPF world, I am talking everywhere. I always find it funny as business is business and I would imagine most businesses (possibly people here also) wouldn't hesitate to open a place around the corner from their competition (in fact how many did already?) if it meant more money or they had to yet when its a major company it becomes a problem. Not disputing it sucks when it happens but it does happen everywhere.

I also think its great how active yourself/Xpel are on these and most likely other forums. The fact you take the time to help on forums or address comments is great to have.

Bulk Auto Films · October 1, 2014

Very well put Jeff and goes to show there is always two sides to every story!

I for one am amazed at how Xpel works and it is a shame more companies aren't like that and im not just talking in the PPF world, I am talking everywhere. I always find it funny as business is business and I would imagine most businesses (possibly people here also) wouldn't hesitate to open a place around the corner from their competition (in fact how many did already?) if it meant more money or they had to yet when its a major company it becomes a problem. Not disputing it sucks when it happens but it does happen everywhere.

I also think its great how active yourself/Xpel are on these and most likely other forums. The fact you take the time to help on forums or address comments is great to have.

An analogy would be if the "competition" makes you money then you move next door. Which would cause you to loose the money the "competition" was getting you.

I do a lot of 1099 work. One of the shops, I work at least twice a week. Now when I open a shop if I moved right next door to compete. I bet I will loose the 1099 work they were giving me.

Speed · October 1, 2014

When I found out xpel had set up the retail store a half mile from my shop, I was pretty upset. Not because they were there, but because they didn't extend the simple courtesy of a phone call letting me know what was going on. Heck I would have given them at least a dozen dealerships complete with general, finance, and accessory managers names, phone numbers, and price points. They could have walked right in and had twenty installs the next day had that been the case. I've got nearly 15 years of intel in the Atlanta market yet kept out of the loop and gone behind my back. What did I do to deserve that?

My biggest fear isn't losing market share, there are sooo many cars out there to film its like complaining someone took a bucket of sand home from the beach. It's Xpel deciding to shut off my access to the DAP. I'm very, very, VERY stressed out I will come in one morning and find I'm unable to cut film. I feel extremely unappreciated and terribly unsure of what to do other than to carry on as usual and take things one day at a time.

Todd @ Interwest · October 1, 2014

Jeff & Tim,

Thank you for the official response form the XPEL camp. When I started the thread it was a mere question as nothing that I posted was off key in that XPEL opened / bought another company owned installation facility. I did even post that “I am not saying that it is wrong for XPEL to do so” depending on the situation or direction the company wants to grow with that business model. I was curious as well since it did take a week before a response was announced.

At the end of the day I have always respected you guys for the passion that you have in the industry as well as knowledge. Although we are competitors we always have had the same goal in growing this business and gaining consumer awareness of a fantastic product that is still a baby in comparison to what it can become as an industry.

Every company and manufacture will differ on business strategy and expanding their piece of the market. The most important thing is that it fits the installers and the end customer.

On that note we will see you at SEMA and I will be happy to buy you gentlemen more than one beer! :beer

Thank you,

Todd Bergman

Interwest Distribution

3M Authorized Distributor & Training Facility

pro-tect mobile · October 2, 2014

Ok so I have been installing film for going on 13 years now. I will say that unlike some of the installers out there I go with what film I feel is best and will hold up... that ensures I will get years of referrals from clients and that they will come back for more work. I have seen my business grow year after year because I provided the best installation I could at a price my clients were happy with. I did that. It had nothing to do with the film company. Companies such as Xpel are going to push their products as the best out there... I remember when Extreme was the film of all films according to Xpel yet I hear and see issues with it all the time. My point is film companies are in this for themselves. To sit there and tell me they are promoting their business to help my bottom line; that's laughable. when clients call me they ask me what film I think is the best and why. They respect my opinion as an installer. And that's why they keep coming back.

Supreme in a round about way you prove my point. They are in it for themselves but hey, that's how business is. By the way they are in forums to promote their business, not your or anyone else's.

Anyway to sum this up. If you open a shop in Dallas... which the rumor is you are... yet you told me two weeks ago you are not, you will be taking money form the local installers. Period. If you get one install that they would have come to us yet they chose you then you took money from the installer here. The simple problem I have with that is its the local installers that promoted your product yet now you are paying them back by taking their business. If you really wanted to "grow the market" you would advertise here and promote your film (or the industry) without opening up an installation shop. because if you grew awareness in the market and it took off the local installer would get so much work he would need to hire more people which he would send to your school to get training. Instead you just slide in and start installing. So sorry Jeff. I don't buy it. And I didn't call names out but since you jumper in it was you that told me you weren't opening a Houston store. Then when I called you out on it the verbiage changed to "well we were going to at the time but plans changed". Oh and doesn't one of the head guys personally know the owner of Lamborghini of Houston? Because the service manager there wanted me to come down for installs but the new car side couldn't because the owner and a top level Xpel guy were good buddies.

Since you bring it up Jeff who developed the self healing technology and where do you get your film manufactured at?

I have been debating for weeks to bring this topic up because it has really been bothering me. If there is one thing I cant stand is unethical business practices. I have always treated my clients well because they are the customer. Well the installers carrying your product are the customers. And it looks as if they rent being treated to well.

Jean-Claude · October 2, 2014

- We charge between $1700 - $2000 for full fronts. That's hardly undercutting by almost anyone's standards.

I will comment on one point. The Atlanta Xpel store is charging $1300 for a full front and they offered a potential client of mine(who had already spoken to me) a full wrap on an Aston for $2700.

As someone whose parents and grandparents were manufacturing and distribution business owners, I was raise with one absolute rule. You do not compete with your customers. This is exactly what is effectively happening. I do not talk trash about my competitors nor infer anything that would drive a wedge between them and shared potential clients. I respect Derek and David. But, I will address concerns I may potentially have with someone face to face. I feel Xpel has stepped over a boundary. If you want to build business, you do not compete with your customer. You build confidence and rapport. You provide the best service and quality. You do not compete with your customer.

Kevin is a super nice guy and I like him a lot. And I voiced my concerns to him. I told him flat out that I feel Xpel has become a competitor and I do not like the idea of supporting my competitor. But, too, I told him that if he wants my business, he can drive clients my way and every single client he sends me I will install Ultimate for. In two months I've not had a call from him referring a client(btw, I sent a new BMW M4 full wrap his way a few weeks ago when I could not fit it into my schedule -lol). How's that for building the area? What's funny is how close I was to switching to using Xpel full time right before I got word that you guys were now competing for the same clients.

Xpel, maybe your intentions are truly good. But I feel you're out of touch with what your potential customers are looking for(at least in Atlanta and the move to install locally is proof). You guys could have some of the best installers in the USA jamming out with Xpel full-time. But there were some missing pieces and it just got a whole lot worse by moving next door.