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 and 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer the latest 100,000 mile warranty which means that the independent will get little chance to work with 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 happen to adding other value added benefits such being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a feat to keep plan the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s but not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers constantly competed for skilled labor and may have become a great deal more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers with regard to health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to rent and retain these competent employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ An increased end dealer technician may well $100,000 one year with benefits while a self-employed shop owner would have to gross a lot more $1,000,000 one year to make that and get to pay for their own benefits and social equity.
Because in the economic realities many independent owners are at this moment closing their shops and going to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis is comprised and a portion needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding increase the repair period and increasing service delivery. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee world war. Techs cannot fix cars without information and you will find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical information is proprietary while the independents claim the information should be available to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777