Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops towards 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 may 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 at least one 100,000 mile warranty particular person yourself the independent will get little chance to work with that car for their early 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers with regard to 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 and not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers often competed for skilled labor and already have got become significantly aggressive. With fewer conserve entering business repair profession and opting instead for careers such as health and technology, the total talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to rent and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s House?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician may well make $100,000 twelve months with benefits while an independent shop owner would to be able to gross within the $1,000,000 a year to make that and get to purchase their own benefits and social safe practices.
Because of this economic realities many independent owners are usually closing their shops on and on 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 problems.
Additionally, any time a diagnosis is made and a part needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding increase the repair and also increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical details are proprietary everybody is making independents claim the information should be for sale to anyone that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
