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 the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will 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 which means that the independent will get little chance to handle that car for their early 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 in the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep on top of 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 in order to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers constantly competed for skilled labor and already have become a great deal more aggressive. With fewer young people entering business repair profession and opting instead for careers such as health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to hire and retain these highly skilled employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician may well $100,000 one year with benefits while a private shop owner would to be able to gross over a $1,000,000 one year to make that and have absolutely to reimburse their own benefits and social equity.
Because in the 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, if a diagnosis is intended and a fraction needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding up the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical information is proprietary while independents claim the information should accumulate to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777