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 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer some sort of 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 have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such to be a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in an effort to keep plan 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 for you to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers constantly competed for skilled labor and already have got become a lot aggressive. With fewer folks entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to rent and retain these highly skilled employees. The automotive technician, would you rather work in Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 a whole year with benefits while a self-employed shop owner would to be able to gross a lot more $1,000,000 one year to make that and have to afford their own benefits and social security.
Because from the economic realities many independent owners are currently closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, each time a diagnosis appeared and a part needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding in the repair as well as increasing customer care. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee struggle. Techs cannot fix cars without information and you’ll find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that their technical data is proprietary individuals independents claim the information should build up to anyone who owns or fixes create 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 23, 2019