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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem may be 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 at least one 100,000 mile warranty which means that the independent will get little chance to handle that car for the most important 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot to keep up 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 not just competitive pricing that is worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers generally competed for skilled labor and already have got become a great deal more aggressive. With fewer individuals entering business repair profession and opting instead for careers such as health and technology, the total talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents you ought to hire and retain these highly skilled employees. As an automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are picking up the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician earns $100,000 a year with benefits while an independent shop owner would ought to gross within the $1,000,000 a year to make that and have absolutely to afford their own benefits and social security.
Because the hands down economic realities many independent owners are now closing their shops all night to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, any time a diagnosis is comprised and a portion needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding in the repair and also increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical details are proprietary individuals independents claim the information should be around to anyone that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777