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 the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem may 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 relating to this 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 seeking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in an effort to keep plan 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 for you to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers generally competed for skilled labor and will have become a lot aggressive. With fewer individuals entering automobile repair profession and opting instead for careers with regard to health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents you ought to hire and retain these competent employees. A great automotive technician, would you rather work for Audi or Joe’s House?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician may well make $100,000 one year with benefits while an independent shop owner would have to gross during a $1,000,000 twelve months to make that and have to pay for their own benefits and social basic safety.
Because from the economic realities many independent owners are usually closing their shops and going to enhance 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 rrssues.
Additionally, in the event the diagnosis is comprised and a part of needs replacing the dealer will achieve it in stock, not only verifying diagnosing but greatly speeding increase the repair as well as increasing service delivery. Big advantage Cadillac and Bmw.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical information is proprietary individuals independents claim the information should be available to anyone that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
