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 along with 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer kind 100,000 mile warranty meaning that the independent will get little chance to work on that car for the most important 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 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 usually now being forced to give courtesy rides to customers in a shot to keep with 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 to be able to independent repair shop prices.
But it’s but not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers generally competed for skilled labor and may have become a great deal more aggressive. With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to utilize and retain these competent employees. As an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ An excellent end dealer technician may well make $100,000 a whole year with benefits while a private shop owner would to be able to gross within the $1,000,000 twelve months to make that and have absolutely to pay for their own benefits and social basic safety.
Because from the economic realities many independent owners are now closing their shops and going to work with 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 crises.
Additionally, any time a diagnosis created from and a part needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding up the repair along with increasing customer support. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee war. 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 tools.
The manufacturers claim that their technical results are proprietary while independents claim the information should be available to anyone that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777