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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 so that you can the independent will get little chance to improve 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 along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as the loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in hard work 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 in order to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers generally competed for skilled labor and already have got become significantly aggressive. With fewer right now entering effect on repair profession and opting instead for careers such as health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to work with and retain these highly skilled employees. The automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are taking the best ‘mechanics’ or as may well known today, ‘technicians.’ An increased end dealer technician can make $100,000 twelve months with benefits while wages shop owner would to be able to gross within the $1,000,000 twelve months to make that and have absolutely to obtain their own benefits and social equity.
Because in the economic realities many independent owners are usually closing their shops and going to be employed by 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, is not diagnosis is made and a part of needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding increase the repair along with increasing service delivery. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and there has been a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical information is proprietary everybody is making independents claim the information should be around to anyone who owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
