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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 some sort of 100,000 mile warranty meaning that the independent will get little chance to operate that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep plan 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 not worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers constantly competed for skilled labor and already have got become significantly aggressive. With fewer young people entering automobile repair profession and opting instead for careers with regard to health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to hire and retain these competent employees. A great automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician actually make $100,000 yearly with benefits while a private shop owner would to be able to gross within the $1,000,000 every year to make that and get to afford their own benefits and social equity.
Because of these economic realities many independent owners are at this moment closing their shops and going to work with GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, in the event the diagnosis is intended and a part needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding in the repair as well as increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical information is proprietary in terms of independents claim the information should accumulate to anybody that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
