Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops towards 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 may 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 kind 100,000 mile warranty meaning 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 seeking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort 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 for you to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers have been competed for skilled labor and will have become significantly more aggressive. With fewer young people entering business repair profession and opting instead for careers such as health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to work with and retain these competent employees. The automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are taking the best ‘mechanics’ or as may well known today, ‘technicians.’ An increased end dealer technician actually make $100,000 twelve months with benefits while a self-employed shop owner would have to gross during a $1,000,000 a year to make that and still have to obtain their own benefits and social basic safety.
Because in the economic realities many independent owners are currently closing their shops on and on to be suitable 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 injuries.
Additionally, is not diagnosis is intended and a fraction needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding inside the repair and also increasing customer support. Big advantage Cadillac and Bmw.
But it is not just a skilled employee struggle. 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 equipment.
The manufacturers claim that the technical information is proprietary in terms of independents claim the information should be for sale to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
