Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your community 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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will 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 work with 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 inside the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such to be a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in an effort 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 to be able to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers generally competed for skilled labor and will have become significantly more aggressive. With fewer conserve entering the auto 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 becoming harder for independents you ought to hire and retain these highly skilled employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician may well $100,000 a year with benefits while wages shop owner would have to gross a lot more $1,000,000 one year to make that and still have to reimburse their own benefits and social protective measures.
Because of these 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 definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, is not diagnosis is made and a part needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding increase the repair as well as increasing customer support. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and you will find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical results are proprietary while independents claim the information should accumulate to anybody that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
