Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your area 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 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 the latest 100,000 mile warranty meaning that the independent will get little chance to improve that car for the first 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work to keep up with the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have always competed for skilled labor and may have become significantly more aggressive. With fewer conserve entering automobile repair profession and opting instead for careers with regard to health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to rent and retain these highly skilled employees. Being an automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician can make $100,000 a whole year with benefits while wages shop owner would require gross a lot more $1,000,000 one year to make that and have to obtain their own benefits and social protective measures.
Because of this economic realities many independent owners are now closing their shops all night to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis created from and a part of needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding in the repair along with increasing service delivery. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and love a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical results are proprietary individuals independents claim the information should build up to anybody that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
