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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 particular person yourself the independent will get little chance to work with that car for one 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 up the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep up 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 comparable to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers generally competed for skilled labor and may have become even more aggressive. With fewer folks entering the auto repair profession and opting instead for careers with regard to health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to hire and retain these competent employees. Being an automotive technician, would you rather work for Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ A top end dealer technician can make $100,000 twelve months with benefits while a private shop owner would to be able to gross within a $1,000,000 twelve months to make that and have to obtain their own benefits and social basic safety.
Because the hands down economic realities many independent owners are now closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, each time a diagnosis is intended and a portion needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding in the repair as well as increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical facts are proprietary everybody is making independents claim the information should be for sale to anybody that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777