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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem could 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 particular person yourself 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 in order to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying to keep on top of 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 to be able to independent repair shop prices.
But it’s and not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers generally competed for skilled labor and now have become a lot aggressive. With fewer young people entering automobile repair profession and opting instead for careers like health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents you ought to hire and retain these competent employees. As an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician earns $100,000 a year with benefits while a self-employed shop owner would have to gross over a $1,000,000 twelve months to make that and have absolutely to afford their own benefits and social protective measures.
Because the hands down economic realities many independent owners are at this moment closing their shops and going to enhance 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 crises.
Additionally, if a diagnosis is made and an area needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding inside the repair period and increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical information is proprietary everybody is making independents claim the information should build up to anyone that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
