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 along with 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 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 improve 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 in the difference.
Additionally many dealers such as Porsche and Saab already been 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 an effort to keep plan 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 for you to independent repair shop prices.
But it’s not just competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers often competed for skilled labor and may have become a lot aggressive. With fewer individuals entering effect on repair profession and opting instead for careers like health and technology, the total talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to work with and retain these competent employees. The automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician earns $100,000 one year with benefits while a private shop owner would have to gross during a $1,000,000 one year to make that and still have to pay for their own benefits and social basic safety.
Because in the economic realities many independent owners are usually closing their shops and going to work with GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, each time a diagnosis is comprised and a part of needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding increase the repair along with increasing customer care. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee struggle. Techs cannot fix cars without information and you will find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical details are proprietary individuals independents claim the information should accumulate to anyone that owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777