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 will 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 kind 100,000 mile warranty meaning that the independent will get little chance to operate 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 looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as the loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep plan the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s and not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have been competed for skilled labor and may have become significantly more aggressive. With fewer right now entering automobile repair profession and opting instead for careers such as health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to utilize and retain these highly skilled employees. The automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician earns $100,000 twelve months with benefits while a self-employed shop owner would have to gross within the $1,000,000 one year to make that and still have to afford their own benefits and social security.
Because in the 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 shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis is made and a part of needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding within the repair time and increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee world war. 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 applications.
The manufacturers claim that the technical information is proprietary individuals independents claim the information should be for sale to anybody that owns or fixes help to make of motor.
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Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777