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 also 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 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 on that car for the first 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 are adding other value added benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep lets start work on 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 comparable to independent repair shop prices.
But it’s simply competitive pricing that is worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers have always competed for skilled labor and already have become a great deal more aggressive. With fewer folks entering business repair profession and opting instead for careers such as health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents you ought to hire and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician earns $100,000 a year with benefits while wages shop owner would ought to gross during a $1,000,000 twelve months to make that as well as have to pay for their own benefits and social security.
Because the hands down economic realities many independent owners are now closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, any time a diagnosis is comprised and a fraction needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding within the repair and also increasing customer support. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and you’ll 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 data is proprietary individuals independents claim the information should accumulate to anyone that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777