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 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 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as the 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 similar to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have always competed for skilled labor and already have got become even more aggressive. With fewer conserve entering business repair profession and opting instead for careers like health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents you ought to hire and retain these competent employees. Being an automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician may well $100,000 twelve months with benefits while a private shop owner would must gross within the $1,000,000 twelve months to make that and still have to pay for their own benefits and social basic safety.
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 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 purchase it in stock, not only verifying diagnosing but greatly speeding inside the repair period and increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that their technical facts are proprietary in terms of independents claim the information should be for sale to anybody that owns or fixes that make 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 21, 2019