Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops near 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 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 the latest 100,000 mile warranty particular person yourself the independent will get little chance to work with that car for site to website 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work to keep with the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s and not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers often competed for skilled labor and will have become a great deal more aggressive. With fewer individuals entering effect on repair profession and opting instead for careers regarding example health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to utilize and retain these highly skilled employees. Being an automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician earns $100,000 twelve months with benefits while a self-employed shop owner would have to gross during a $1,000,000 twelve months to make that and have to purchase their own benefits and social basic safety.
Because in the economic realities many independent owners are usually closing their shops all night to enhance 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 injuries.
Additionally, if a diagnosis appeared and an area needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding up the repair along with increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical facts are proprietary while independents claim the information should be around to anyone who owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
