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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will 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 kind 100,000 mile warranty meaning that the independent will get little chance to operate that car for one 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 up the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep plan the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices for you 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 through dealers: the dealers have been competed for skilled labor and already have become significantly more aggressive. With fewer conserve entering automobile repair profession and opting instead for careers such as health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents you ought to hire and retain these competent employees. Regarding automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician earns $100,000 twelve months with benefits while a self-employed shop owner would ought to gross within the $1,000,000 one year to make that as well as have to afford their own benefits and social security.
Because in the economic realities many independent owners have started closing their shops all night to work with 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 crises.
Additionally, any time a diagnosis is made and a part of needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding within the repair time and increasing client satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee showdown. 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 applications.
The manufacturers claim their technical details are proprietary individuals independents claim the information should be for sale to anybody that owns or fixes help to 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 24, 2019