Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops towards you 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer getting 100,000 mile warranty which means that the independent will get little chance to handle that car for one 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 the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such 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 up 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 similar to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers have always competed for skilled labor and already have become a lot aggressive. With fewer folks entering business repair profession and opting instead for careers like health and technology, the total talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to hire and retain these competent employees. A great automotive technician, would you rather improve Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician may well $100,000 one year with benefits while wages shop owner would must gross within a $1,000,000 a year to make that as well as have to obtain their own benefits and social protective measures.
Because of these economic realities many independent owners are at this moment closing their shops on and on 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 health issues.
Additionally, in the event the diagnosis is intended and a fraction needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding in the repair and also increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee struggle. Techs cannot fix cars without information and you’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that their technical details are proprietary while the independents claim the information should be available to anyone that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
