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 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 kind 100,000 mile warranty particular person yourself the independent will get little chance to operate that car for their early 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 in order to adding other useful benefits such to be a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a feat to keep lets start work on 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 in order to independent repair shop prices.
But it’s not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers generally competed for skilled labor and already have become a great deal more aggressive. With fewer right now entering automobile repair profession and opting instead for careers like health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents you ought to hire and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 yearly with benefits while a self-employed shop owner would ought to gross during a $1,000,000 one year to make that and get to purchase their own benefits and social protective measures.
Because the hands down economic realities many independent owners are now 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, any time a diagnosis is made and a part needs replacing the dealer will achieve it in stock, not only verifying diagnosing but greatly speeding increase the repair period and increasing client satisfaction. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical facts are proprietary while the independents claim the information should be available to anyone who owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
