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 and also 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 ten or fifteen 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 which means that the independent will get little chance to operate 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 in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made. Independents are usually now being 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 regarding example 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 is actually not worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers often competed for skilled labor and already have got become a lot aggressive. With fewer individuals entering the auto repair profession and opting instead for careers such as health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents you ought to hire and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician may well $100,000 yearly with benefits while an independent shop owner would ought to gross during a $1,000,000 1 yr to make that as well as have to purchase their own benefits and social equity.
Because of these economic realities many independent owners have started closing their shops on and on to work for 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 appeared and a portion needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding inside the repair as well as increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical details are proprietary while the independents claim the information should accumulate to anyone who owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
