Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops near 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 could 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 some sort of 100,000 mile warranty meaning that the independent will get little chance to handle that car for their early 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 the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful 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 feat to keep on top of 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 not just competitive pricing is actually 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 a great deal more aggressive. With fewer right now entering the auto repair profession and opting instead for careers with regard to health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents you ought to hire and retain these highly skilled employees. The automotive technician, would you rather are employed by Audi or Joe’s Drive way?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician can make $100,000 yearly with benefits while a self-employed shop owner would to be able to gross during a $1,000,000 a year to make that and get to purchase their own benefits and social protective measures.
Because of this economic realities many independent owners are currently closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, each time a diagnosis is comprised and a part needs replacing the dealer will achieve it in stock, not only verifying diagnosing but greatly speeding inside the repair period and increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical details are proprietary while the independents claim the information should be available to anyone who owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
