Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your area 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 economic.
The global problem could be 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 kind 100,000 mile warranty so that you can 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 in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat 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 not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers generally competed for skilled labor and already have got become significantly aggressive. With fewer individuals entering business repair profession and opting instead for careers regarding example health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to hire and retain these highly skilled employees. The automotive technician, would you rather are employed by Audi or Joe’s Shed?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 a whole year with benefits while a self-employed shop owner would ought to gross a lot more $1,000,000 every year to make that and get to pay for their own benefits and social equity.
Because of this economic realities many independent owners are now closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, in the event the diagnosis appeared and a part needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding up the repair time and increasing customer care. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical results are proprietary while independents claim the information should build up to anyone who owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
