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 the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem may 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 the latest 100,000 mile warranty which means that the independent will get little chance to improve that car for site to website 5-10 years it is owned.
As new car sales margins have gone 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 have been adding other value added benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep up with 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 similar to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers generally competed for skilled labor and may have become a lot aggressive. With fewer right now entering significantly repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents you ought to hire and retain these highly skilled employees. Regarding automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 a whole year with benefits while an independent shop owner would require gross during a $1,000,000 one year to make that as well as have to obtain their own benefits and social security.
Because of this economic realities many independent owners have started 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 crises.
Additionally, each time a diagnosis created from and a portion needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding in the repair and also increasing service delivery. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that the technical results are proprietary in terms of independents claim the information should build up to anyone who owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
