Dealership closings will lead to a number of short-term opportunities for independent repair shops, but the long-term effects could be detrimental to the industry, says Dave Striegel, owner of Elizabeth AutoCare, in Elizabeth, Pa.
In fact, says the owner of the six-bay facility, “I think long-term it will be a different product altogether. As the dealerships start to close, there’s going to be a glut of technicians, there’s going to be a glut of service advisors.” The dealership owners, he projects, are “going to become what I call super independents. It’s going to offer a whole new competitor.”
Striegel, last year’s No. 2 winner in the Motor Age Top Shop competition, says his true competition has been the dealerships for some time. It’s why his shop operates a fleet of six loaner cars.
“When they’re parked in people’s driveways, they’re kind of a moving billboard for us,” he says. “It’s a perfect referral program.”
He’s also focused his marketing more toward the dealership customer – a more maintenance-minded driver, likely to own a newer vehicle.
This marketing strategy has beElizabeth AutoCare prides itself on community involvement, from providing free repair work and fuel to local police departments, to fund-raising for the American Cancer Society.
Striegel adds that he’s proud of his shop’s “Top Shop” designation, which has brought a groundswell of congratulations from other shop owners, some of whom he didn’t even know.
Operating in independent repair brings with it a host of challenges, one of them being the double-edged sword of diagnostic work. While now is the perfect time to invest in diagnostic tools and systems, especially if you have cash, diagnostic work is not as profitable as maintenance and breakdown repairs, says Striegel.
“You’ve gotta have the ace technician, and if your best technician is bottled up with diagnostic work, it greatly restricts your ability to create a profit with that technician.”
Additionally, there seems to be fewer training opportunities at the moment, which could hinder a shop’s growth, he adds.
The goal to remaining successful is maintaining a healthy balance of maintenance-based business, along with a happy staff and customer base.
Click here to enter the 2009 Top Shops competition.
