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 as well as 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer getting 100,000 mile warranty which means 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 in order to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in an effort to keep 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 comparable to independent repair shop prices.
But it’s not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers constantly competed for skilled labor and now have become significantly more aggressive. With fewer folks entering business repair profession and opting instead for careers with regard to health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to work with and retain these competent employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician may well $100,000 one year with benefits while an independent shop owner would ought to gross a lot more $1,000,000 every year to make that as well as have to afford their own benefits and social security.
Because of these economic realities many independent owners have started closing their shops and going to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, in the event the diagnosis created from and a portion needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding increase the repair period and increasing client satisfaction. Big advantage Cadillac and Rolls royce.
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 tools.
The manufacturers claim that their technical data is proprietary everybody is making independents claim the information should be for sale to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777