If you see fewer auto repair shops in your town 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 could 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 getting 100,000 mile warranty meaning that the independent will get little chance to work on 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 seeking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying 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 in order to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers generally competed for skilled labor and may have become a lot aggressive. With fewer folks entering business repair profession and opting instead for careers regarding example health and technology, the total talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to utilize and retain these highly skilled employees. Being an automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician actually make $100,000 yearly with benefits while a private shop owner would have to gross a lot more $1,000,000 every year to make that as well as have to reimburse their own benefits and social security.
Because from the economic realities many independent owners are usually closing their shops on and on 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 health issues.
Additionally, each time a diagnosis appeared and a part needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding in the repair time and increasing customer care. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical information is proprietary in terms of independents claim the information should be available to anyone that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777