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 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty which means that the independent will get little chance to improve that car for the first 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 along the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a feat to keep with 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 comparable to independent repair shop prices.
But it’s and not just competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers often competed for skilled labor and will have become a lot aggressive. With fewer young people entering the auto repair profession and opting instead for careers like health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents you ought to hire and retain these highly skilled employees. Being an automotive technician, would you rather improve Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician earns $100,000 twelve months with benefits while wages shop owner would ought to gross a lot more $1,000,000 one year to make that and still have to reimburse their own benefits and social safe practices.
Because of this economic realities many independent owners are at this moment closing their shops and going to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, is not diagnosis is intended and a part needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding increase the repair and also increasing client satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee conflict. Techs cannot fix cars without information and you’ll find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical data is proprietary individuals independents claim the information should be for sale to anyone who owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
