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 business.
The global problem may be 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 at least one 100,000 mile warranty particular person yourself the independent will get little chance to handle that car for site to website 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as the loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep lets start work on 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 similar to independent repair shop prices.
But it’s not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers generally competed for skilled labor and will have become even more aggressive. With fewer conserve entering automobile repair profession and opting instead for careers like health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to work with and retain these competent employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician may well $100,000 a whole year with benefits while a private shop owner would must gross within the $1,000,000 twelve months to make that and still have to pay for their own benefits and social security.
Because of this economic realities many independent owners are usually closing their shops all night to enhance GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, each time a diagnosis created from and a part needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding inside the repair time and increasing client satisfaction. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee conflict. 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 applications.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should be for sale to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777