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 and also 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 some sort of 100,000 mile warranty so that you can the independent will get little chance to improve that car for the most important 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab already been 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 hard work to keep up with the dealers since customers now expect this service.
Furthermore dealers for example 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 may also be won together with dealers: the dealers often competed for skilled labor and may have become a lot aggressive. With fewer conserve entering automobile repair profession and opting instead for careers like health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to rent and retain these competent employees. The automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician earns $100,000 one year with benefits while a self-employed shop owner would to be able to gross over a $1,000,000 every year to make that as well as have to purchase their own benefits and social security.
Because in the economic realities many independent owners are usually closing their shops on and on to be employed by 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 problems.
Additionally, is not diagnosis is intended and an area needs replacing the dealer will buy it in stock, not only verifying the identification but greatly speeding in the repair and also increasing customer support. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee conflict. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical results are proprietary while the independents claim the information should be for sale to anyone that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777