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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 the latest 100,000 mile warranty which means that the independent will get little chance to work with that car for one 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 the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat to keep on top of 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 comparable to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers have always competed for skilled labor and may have become significantly more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers such as health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to work with and retain these competent employees. As an automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician actually make $100,000 a year with benefits while an independent shop owner would require gross during a $1,000,000 1 yr to make that and get to purchase their own benefits and social safe practices.
Because the hands down 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 center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis created from and an area needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding within the repair period and increasing customer support. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical information is proprietary in terms of independents claim the information should accumulate to anyone that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
