Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your town 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 could 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 improve 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 have been adding other useful benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in hard work to keep on top of 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 similar to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have been competed for skilled labor and now have become significantly aggressive. With fewer folks entering automobile repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to hire and retain these highly skilled employees. Being an automotive technician, would you rather work in Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician may well $100,000 a whole year with benefits while an unbiased shop owner would to be able to gross a lot more $1,000,000 every year to make that and have to reimburse their own benefits and social basic safety.
Because of this economic realities many independent owners are now closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis appeared and a part of needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding up the repair time and increasing customer support. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical details are proprietary while the independents claim the information should build up to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
