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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 getting 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 seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in hard work to keep plan 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 to be able to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers constantly competed for skilled labor and will have become significantly aggressive. With fewer conserve entering effect on repair profession and opting instead for careers regarding example health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents you ought to hire and retain these highly skilled employees. The automotive technician, would you rather improve Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician earns $100,000 a year with benefits while an unbiased shop owner would require gross a lot more $1,000,000 a year to make that and get to pay for their own benefits and social protective measures.
Because of these economic realities many independent owners are usually closing their shops all night to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, in the event the diagnosis is made and a part of needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding inside the repair time and increasing service delivery. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical information is proprietary while independents claim the information should accumulate to anyone that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
