Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops near you 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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 handle 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 inside the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep plan 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 comparable to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have always competed for skilled labor and will have become a lot aggressive. With fewer conserve entering effect on repair profession and opting instead for careers with regard to health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to rent and retain these competent employees. Regarding automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician earns $100,000 a year with benefits while an independent shop owner would have to gross over a $1,000,000 a year to make that as well as have to afford their own benefits and social security.
Because in the economic realities many independent owners are at this moment closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto repair 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 diagnosis but greatly speeding inside the repair period and increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical results are proprietary individuals independents claim the information should accumulate to anyone who owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
