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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 particular person yourself the independent will get little chance to operate that car for site to website 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 have been adding other value added benefits such as a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in trying 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 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 is also being won by the dealers: the dealers constantly competed for skilled labor and now have become significantly aggressive. With fewer folks entering automobile repair profession and opting instead for careers regarding example health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to hire and retain these highly skilled employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician may well $100,000 a whole year with benefits while an unbiased shop owner would ought to gross over a $1,000,000 one year to make that as well as have to reimburse their own benefits and social equity.
Because from the economic realities many independent owners are now closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, if a diagnosis is made and a portion needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding within the repair time and increasing customer care. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee conflict. 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 solutions.
The manufacturers claim their technical results are proprietary everybody is making independents claim the information should accumulate to anyone that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777