Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your town 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 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 getting 100,000 mile warranty so that you can the independent will get little chance to improve that car for the first 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in hard work to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers for 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 naturally worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have been competed for skilled labor and already have got become a great deal more aggressive. With fewer right now entering the auto repair profession and opting instead for careers such as health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents you ought to hire and retain these competent employees. A great automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 yearly with benefits while a private shop owner would to be able to gross a lot more $1,000,000 every year to make that and get to afford their own benefits and social protective measures.
Because in the economic realities many independent owners are usually closing their shops all night 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, each time a diagnosis is made and a portion needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding up the repair time and increasing customer care. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee struggle. 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 tools.
The manufacturers claim their technical results are proprietary everybody is making independents claim the information should accumulate to anybody that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
