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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will 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 getting 100,000 mile warranty which means that the independent will get little chance to operate that car for the most important 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as the loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a feat to keep up with the dealers since customers now expect this service.
Furthermore dealers such as 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 but not just competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have been competed for skilled labor and already have become even more aggressive. With fewer right now entering the auto repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to rent and retain these highly skilled employees. Regarding automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician can make $100,000 yearly with benefits while wages shop owner would ought to gross a lot more $1,000,000 1 yr to make that as well as have to obtain their own benefits and social security.
Because of these economic realities many independent owners are currently closing their shops and going to be suitable for 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 health issues.
Additionally, if a diagnosis is made and an area needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding within the repair period and increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical results are proprietary while the independents claim the information should be around to anybody that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
