Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
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 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 getting 100,000 mile warranty particular person yourself the independent will get little chance to work on that car for one 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 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 forced to give courtesy rides to customers in trying 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 for you to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers generally competed for skilled labor and will have become even more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers such as health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to hire and retain these competent employees. Being an automotive technician, would you rather improve Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician can make $100,000 one year with benefits while a self-employed shop owner would require gross within a $1,000,000 a year to make that and have to purchase their own benefits and social basic safety.
Because from the economic realities many independent owners are at this moment closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, each time a diagnosis is comprised and a portion needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding inside the repair as well as increasing service delivery. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical information is proprietary everybody is making independents claim the information should accumulate to anybody that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
