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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 at least one 100,000 mile warranty so that you can the independent will get little chance to work with that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking 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 a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort to keep with the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices similar 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 constantly competed for skilled labor and already have become even more aggressive. With fewer right now entering effect on repair profession and opting instead for careers regarding example health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to work with and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well $100,000 a whole year with benefits while a self-employed shop owner would have to gross during a $1,000,000 every year to make that and have to reimburse their own benefits and social equity.
Because of this economic realities many independent owners are now closing their shops all night to work with 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 is comprised and a part of needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding in the repair time and increasing customer care. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical details are proprietary in terms of independents claim the information should be for sale to anyone who owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777