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 as well as 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer the latest 100,000 mile warranty particular person yourself the independent will get little chance to work on that car for the most important 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 happen to adding other value added benefits such as the loaner car while repairs are being made. Independents are now 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 with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers often competed for skilled labor and now have become significantly aggressive. With fewer right now entering significantly repair profession and opting instead for careers such as health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents you ought to hire and retain these highly skilled employees. A great automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician may well $100,000 one year with benefits while an independent shop owner would to be able to gross during a $1,000,000 every year to make that and have absolutely to afford their own benefits and social security.
Because of these economic realities many independent owners have started closing their shops all night 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 crises.
Additionally, each time a diagnosis is intended and a part needs replacing the dealer will buy it in stock, not only verifying the identification but greatly speeding within the repair period and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee showdown. 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 the technical details are proprietary individuals independents claim the information should be around to anybody that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777