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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could 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 kind 100,000 mile warranty relating to this the independent will get little chance to improve 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 along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added 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 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 to be able to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers often competed for skilled labor and already have got become a great deal more aggressive. With fewer individuals entering effect on repair profession and opting instead for careers with regard to health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to hire and retain these competent employees. As an automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician earns $100,000 twelve months with benefits while wages shop owner would require gross within a $1,000,000 one year to make that as well as have to purchase their own benefits and social protective measures.
Because of these economic realities many independent owners are currently closing their shops and going to be suitable for 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 is comprised and an area needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding within the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it is not just a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical information is proprietary while independents claim the information should be for sale to anybody that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777