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 as well as 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 kind 100,000 mile warranty particular person yourself the independent will get little chance to operate that car for one 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 the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such to be a loaner car while repairs are being made. Independents are increasingly 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 with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s not just competitive pricing that is 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 become a great deal more aggressive. With fewer right now entering automobile repair profession and opting instead for careers like health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents you ought to hire and retain these competent employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 yearly with benefits while a self-employed shop owner would ought to gross over a $1,000,000 one year to make that and get to pay for their own benefits and social safe practices.
Because in the economic realities many independent owners are now closing their shops all night to work 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 health issues.
Additionally, any time a diagnosis is made and a fraction needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding increase the repair time and increasing service delivery. Big advantage Cadillac and Bmw.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and love a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical results are proprietary while the independents claim the information should accumulate to anyone who owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
