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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will 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 operate 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 seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort to keep on top of 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 comparable to independent repair shop prices.
But it’s as well as competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers have always competed for skilled labor and already have got become a lot aggressive. With fewer folks entering business repair profession and opting instead for careers like health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to utilize and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician may well make $100,000 one year with benefits while a self-employed shop owner would require gross a lot more $1,000,000 one year to make that and get to pay for their own benefits and social safe practices.
Because from the economic realities many independent owners are now closing their shops all night to enhance 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, if a diagnosis created from and a part of needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding within the repair as well as increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and love a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical facts are proprietary in terms of independents claim the information should be around to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777