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 the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 particular person yourself the independent will get little chance to work with 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 have been adding other useful benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat to keep on top of the dealers since customers now expect this service.
Furthermore dealers with regard to 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 that is worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers often competed for skilled labor and already have become a great deal more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers such as health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to hire and retain these competent employees. The automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician may well make $100,000 twelve months with benefits while an independent shop owner would to be able to gross a lot more $1,000,000 a year to make that and get to purchase their own benefits and social safe practices.
Because of these 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 shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, any time a diagnosis is made and a part needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding increase the repair as well as increasing customer satisfaction. Big advantage Cadillac and Mercedes.
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 solutions.
The manufacturers claim that the technical details are proprietary everybody is making independents claim the information should be for sale to anyone that 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 23, 2019