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 also 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 getting 100,000 mile warranty meaning that the independent will get little chance to work on that car for their early 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in hard work 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 similar to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have been competed for skilled labor and now have become even more aggressive. With fewer individuals entering automobile repair profession and opting instead for careers such as health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to work with and retain these competent employees. Being an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician may well $100,000 twelve months with benefits while a private shop owner would ought to gross over a $1,000,000 every year to make that and get to afford their own benefits and social equity.
Because of these economic realities many independent owners are usually closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, if a diagnosis is comprised and a part needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding in the repair along with increasing client satisfaction. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and love a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical results are proprietary while independents claim the information should be for sale to anybody that owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
