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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem is 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 relating to this the independent will get little chance to improve 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 inside the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as the 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 for Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s as well as competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers constantly competed for skilled labor and may have become a lot aggressive. With fewer conserve entering business repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to utilize and retain these competent employees. The automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician can make $100,000 a year with benefits while an unbiased shop owner would require gross a lot more $1,000,000 every year to make that and still have to purchase their own benefits and social protective measures.
Because the hands down economic realities many independent owners are currently closing their shops and going to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, each time a diagnosis created from and a part needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding up the repair and also increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical details are proprietary individuals independents claim the information should be around to anyone who owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777