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 the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 at least one 100,000 mile warranty which means that the independent will get little chance to work on 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 in order to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab have 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 hard work to keep lets start work on 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 in order to independent repair shop prices.
But it’s but not just competitive pricing that is worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers often competed for skilled labor and already have got become even more aggressive. With fewer folks entering business repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to utilize and retain these highly skilled employees. Regarding automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 twelve months with benefits while a self-employed shop owner would require gross during a $1,000,000 twelve months to make that and still have to afford their own benefits and social basic safety.
Because of this economic realities many independent owners are currently closing their shops and going to be employed by GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, any time a diagnosis is made and a portion needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding inside the repair as well as increasing customer care. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that their technical information is proprietary while the independents claim the information should be available to anyone that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777