Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your town 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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could be 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 at least one 100,000 mile warranty so that you can the independent will get little chance to improve that car for their early 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such to be a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s but not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers have been competed for skilled labor and may have become significantly aggressive. With fewer conserve entering the auto repair profession and opting instead for careers with regard to health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents you ought to hire and retain these highly skilled employees. As an automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 a whole year with benefits while an independent shop owner would require gross a lot more $1,000,000 every year to make that and still have to pay for their own benefits and social equity.
Because from the economic realities many independent owners are currently closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis created from and a portion needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding inside the repair time and increasing customer support. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical information is proprietary everybody is making independents claim the information should build up to anyone who owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
