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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will 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 getting 100,000 mile warranty particular person yourself the independent will get little chance to operate that car for the first 5-10 years it is owned.
As new car sales margins have gone 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 in order to adding other useful benefits such as a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat to keep with 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 in order to independent repair shop prices.
But it’s as well as competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have always competed for skilled labor and may have become significantly aggressive. With fewer folks entering the auto repair profession and opting instead for careers such as health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to work with and retain these highly skilled employees. Being an automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician can make $100,000 a year with benefits while an unbiased shop owner would to be able to gross within a $1,000,000 every year to make that and get to pay for their own benefits and social equity.
Because the hands down economic realities many independent owners are currently 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 crises.
Additionally, is not diagnosis is comprised and an area needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding in the repair as well as increasing customer support. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical results are proprietary everybody is making independents claim the information should be around to anyone who owns or fixes that make of automobile.
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