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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will 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 relating to this the independent will get little chance to work with that car for the most important 5-10 years it is owned.
As new car sales margins have gone 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 already been adding other value added benefits such as being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a shot to keep 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 to be able to independent repair shop prices.
But it’s as well as competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers constantly competed for skilled labor and will have become even more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers like health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to work with and retain these highly skilled employees. The automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 yearly with benefits while an unbiased shop owner would have to gross within a $1,000,000 one year to make that and get to reimburse their own benefits and social security.
Because of these economic realities many independent owners are usually closing their shops and going to work for 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 problems.
Additionally, each time a diagnosis is intended and a part of needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding increase the repair period and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical results are proprietary while the independents claim the information should be around to anyone that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777