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 the latest 100,000 mile warranty which means that 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 seeking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in trying to keep plan 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 for you to independent repair shop prices.
But it’s and not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers constantly competed for skilled labor and already have become a great deal more aggressive. With fewer right now entering effect on repair profession and opting instead for careers regarding example health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents you ought to hire and retain these highly skilled employees. Regarding automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician may well make $100,000 a whole year with benefits while wages shop owner would have to gross within a $1,000,000 one year to make that and still have to pay for their own benefits and social basic safety.
Because from the economic realities many independent owners have started closing their shops and going to work for 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, any time a diagnosis is made and an area needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding up the repair as well as increasing service delivery. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and love a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical information is proprietary everybody is making independents claim the information should build up to anybody that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
