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 and also 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer getting 100,000 mile warranty relating to this the independent will get little chance to work on that car for one 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make in 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 are usually now being forced to give courtesy rides to customers in trying to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers generally competed for skilled labor and already have become a great deal more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers such as health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to utilize and retain these competent employees. The automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician may well $100,000 a year with benefits while wages shop owner would require gross over a $1,000,000 one year to make that and get to afford their own benefits and social basic safety.
Because from the economic realities many independent owners are at this moment closing their shops and going to be employed by 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 injuries.
Additionally, each time a diagnosis is intended and a part needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding increase the repair time and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical details are proprietary while the independents claim the information should be available to anyone that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
