Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your community then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is the auto repair and service market has been shrinking in the last ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer some sort of 100,000 mile warranty particular person yourself the independent will get little chance to work with that car for the first 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a shot to keep on top of the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have always competed for skilled labor and will have become significantly aggressive. With fewer young people entering the auto repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to work with and retain these competent employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician actually make $100,000 yearly with benefits while an unbiased shop owner would require gross within a $1,000,000 twelve months to make that and get to obtain their own benefits and social equity.
Because from the economic realities many independent owners are currently closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, in the event the diagnosis created from and an area needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding up the repair as well as increasing service delivery. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee conflict. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical facts are proprietary everybody is making independents claim the information should accumulate to anyone that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
