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 10 or 15 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 relating to this the independent will get little chance to improve that car for one 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work 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 simply competitive pricing that is worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers have been competed for skilled labor and may have become a lot aggressive. With fewer right now entering significantly repair profession and opting instead for careers regarding example health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents you ought to hire and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 a year with benefits while a self-employed shop owner would have to gross within the $1,000,000 one year to make that and get to obtain their own benefits and social security.
Because from the economic realities many independent owners are now closing their shops on and on to be suitable 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, each time a diagnosis is comprised and a portion needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding up the repair along with increasing service delivery. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee struggle. 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 techniques.
The manufacturers claim that the technical results are proprietary in terms of independents claim the information should be around to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
