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 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 some sort of 100,000 mile warranty meaning that 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 looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such as a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a feat 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 from dealers: the dealers often competed for skilled labor and will have become a lot aggressive. With fewer right now entering business repair profession and opting instead for careers regarding example health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents you ought to hire and retain these competent employees. Being an automotive technician, would you rather work for Audi or Joe’s House?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 one year with benefits while a private shop owner would have to gross within a $1,000,000 twelve months to make that and have absolutely to pay for their own benefits and social protective measures.
Because of these economic realities many independent owners are now closing their shops on and on to be employed by 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, any time a diagnosis appeared and a part of needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding inside the repair period and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical details are proprietary while the independents claim the information should be for sale to anyone who owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777