Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your community 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 economic.
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 which means that the independent will get little chance to work with that car for the most important 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such as the loaner car while repairs are being made. Independents are 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 such as Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers generally competed for skilled labor and now have become a great deal more aggressive. With fewer conserve entering significantly repair profession and opting instead for careers like health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents you ought to hire and retain these competent employees. Being an automotive technician, would you rather work in Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 one year with benefits while an independent shop owner would must gross within the $1,000,000 twelve months to make that and have absolutely to pay for their own benefits and social basic safety.
Because from the economic realities many independent owners are currently closing their shops on and on to work with 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 rrssues.
Additionally, any time a diagnosis created from and a portion needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding within the repair and also increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee conflict. 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 solutions.
The manufacturers claim that their technical results are proprietary individuals independents claim the information should be available to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
