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 as well as 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 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 so that you can the independent will get little chance to improve that car for site to website 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep lets start work on 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 in order to independent repair shop prices.
But it’s not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have always competed for skilled labor and already have become even more aggressive. With fewer young people entering automobile repair profession and opting instead for careers regarding example health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents you ought to hire and retain these competent employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ A top end dealer technician can make $100,000 twelve months with benefits while an independent shop owner would must gross within the $1,000,000 a year to make that as well as have to pay for their own benefits and social safe practices.
Because in the economic realities many independent owners are now closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, if a diagnosis is intended and a fraction needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding up the repair along with increasing service delivery. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical details are proprietary everybody is making independents claim the information should be for sale to anyone who owns or fixes that make 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