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 along with 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 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 have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep with the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have always competed for skilled labor and now have become a lot aggressive. With fewer individuals entering business repair profession and opting instead for careers regarding example health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to hire and retain these highly skilled employees. A great automotive technician, would you rather are employed by Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 a year with benefits while an independent shop owner would have to gross within a $1,000,000 twelve months to make that as well as have to reimburse their own benefits and social protective measures.
Because the hands down economic realities many independent owners are at this moment closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, in the event the diagnosis is comprised and a fraction needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding inside the repair time and increasing customer care. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee war. 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 that their technical results are proprietary while the independents claim the information should be for sale to anyone that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
