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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem is 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 kind 100,000 mile warranty so that you can the independent will get little chance to handle 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 seeking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying 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 is actually not worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers have always competed for skilled labor and will have become a lot aggressive. With fewer right now entering automobile repair profession and opting instead for careers like health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents you ought to hire and retain these highly skilled employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician can make $100,000 twelve months with benefits while a private shop owner would ought to gross over a $1,000,000 twelve months to make that and get to obtain their own benefits and social basic safety.
Because of this economic realities many independent owners are usually closing their shops all night 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 health issues.
Additionally, any time a diagnosis appeared and a part needs replacing the dealer will have it in stock, not only verifying the verification but greatly speeding within the repair time and increasing customer support. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that their technical results are proprietary while independents claim the information should accumulate to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
https://g.page/excel-auto-repair-sales
Posted on:
August 21, 2019