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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will 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 some sort of 100,000 mile warranty which means that the independent will get little chance to work on that car for site to website 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 in the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added 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 example Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers have been competed for skilled labor and will have become even more aggressive. With fewer individuals entering automobile repair profession and opting instead for careers such as health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to utilize and retain these competent employees. Being an automotive technician, would you rather are employed by Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 twelve months with benefits while an unbiased shop owner would require gross over a $1,000,000 twelve months to make that as well as have to obtain their own benefits and social security.
Because the hands down economic realities many independent owners are currently closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis created from 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 care. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical details are proprietary in terms of independents claim the information should accumulate to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
