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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 kind 100,000 mile warranty particular person yourself 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 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 to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in an effort to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers regarding 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 and not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers have always competed for skilled labor and already have got become significantly aggressive. With fewer individuals entering business repair profession and opting instead for careers like health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to utilize and retain these competent employees. Regarding automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician can make $100,000 twelve months with benefits while an independent shop owner would require gross a lot more $1,000,000 one year to make that and still have to purchase their own benefits and social basic safety.
Because of these economic realities many independent owners have started closing their shops all night to enhance GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, in the event the diagnosis is made and a part needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding up the repair period and increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical details are proprietary while the independents claim the information should be for sale to anyone that owns or fixes build of car.
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 24, 2019