Dave Redinger
Redinger is a mechanic with over 45 years experience.
He owns and operates his own shop in the
Toronto area. Dave hosts “Dave’s Corner Garage”
seen on national television - Sun TV on Sunday mornings.
Dave’s Corner Garage deals with automotive issues.

August 15, 2010

Garage Business

The Perfect Storm
 

The never ending complexity of the operating systems installed in the current fleet has had a devastating effect on the corner garage. For starters, the vehicles run forever. The modern car’s reliability has really little to do with servicing the vehicle. Want proof?

30k oil change intervals

The other day a woman drops in with the oil light glowing on her 2006 Honda Civic. A check of the oil level revealed that the crankcase level was so low, no oil registered on the dipstick.

Obvious question: “When did you last change to oil?” Her reply: “Never, I thought all cars came with oil.” So now you know the average new car will run about 30k and three years without having to raise the hood.

Most of us have begun the process of converting our facilities from a breakdown shop to a maintenance shop. If you haven’t done so, it’s not too late. Take the courses, join your business development group or sign up with a supplier banner program. Modeling ourselves after a dentist’s office is the goal. Selling maintenance is the future.

Are you equipped to fix them when they do come in? I know we just won the “Right to Repair” campaign, but I personally believe it was a hollow victory. Why? Well in the last three years servicing hundreds, possibly thousands, of vehicles I only ran into one case where I had to go to the manufacturer to flash a computer. One case in three years in a shop based in Toronto!

Even though we have access to the info, do we have the equipment to load it? Is it a worthwhile investment? Can there ever be a return on investment scenario? Well this cynic says “No” on all counts.

That’s my point. As independents, trying to repair everything that comes through our doors, we’re doomed.

Need another example to see how bad it’s going to get? I drive a Crossfire. The vehicle needed a new key. None of Toronto’s dealers had the ability to cut the key that they supplied with the car. The dealers wouldn’t invest in the equipment to cut laser keys. In fact to get a key made the order was sent to Texas to be cut and coded. Wait time: 8 days. Cost: $190.

It should be pointed out that these keys are used in every vehicle Daimler builds for Chrysler, including the Sprinter series of trucks. Bearing in mind that they are servicing only one brand and that the city’s Chrysler dealers weren’t prepared to invest in key cutting equipment, how are we going to compete?

Finding answers

Is there and answer? Is it all doom and gloom? Yup. My advice? Sell your shop while you still have a business to sell. Get out if you can, buy a condo in Florida and live the good life.

Or

Take a good look at the profit centres in your business - your core business. Find out why these centres work and develop them. Perhaps your future is concentrating on one brand (we do), or fixing trucks or servicing fleets. In short, build a niche business for yourself and company. Perhaps the future won’t be bleak if you act now. Perhaps these are just the ramblings of an old mechanic...