- This topic has 8 replies, 6 voices, and was last updated 11 years, 3 months ago by
.
-
Topic
-
I don’t know about other places in the world. However in TORONTO, CANADA. Most shops are not doing well with the exception of a few independent shops and very few dealerships. Please let me know what you think is the cause. Please let me know what you think.
1) High overhead ?
2) Cheap customers ?
3) Money is tight with people ?
4) Prices for service are too high ?
Please let me know. Over the past 6 years things have steadily gone down the drain. I noticed that shops with a lot of lifts are not doing as well in some cases as a guy with one lift working alone. Something is really up !
-
Replies
-
A lot of things in Ontario are crashing. I’m a committed motorcyclist and those shops are drying up so fast it’s remarkable.
But in the Ontario automotive world there are grossly high cars prices, fuel prices, repair prices, insurance prices, licensing prices, parking prices, and tire taxes. Combine this with high unemployment, and high rate of retirement fixed income, and lowered wages, and the net result is far few people with the financial ability to drive anything but a bicycle.
So in brief, we’ve gotten poor and motoring is now for the elite class.
With money being tight on people, people tend to opt for the backyard mechanic as opposed to taking it to the dealer which generally are more expensive. Less customers through the door equals less money in the wallet and they most likely and eventually go bust.
All of the above!
Really, our summer was hot for what, 2 weeks. The A/C repair business alone sucked in Ontario this year. People just drove without it. I think I had my A/C on, maybe 3 or 4 times all summer. We didn’t get the alternator and battery sales we normally do as well as misfire and fuel delivery problems.
New car and truck sales are up so people who need repairs must be just trading them. The price of fuel is keeping me home more, times that by how many others. When people get nervous about the economy they pucker right up with their spending.
New cars are much more reliable these days. For example, I bought a Honda Civic new in 2008. It needed two repairs in the warranty period.
After the warranty period was over, it has not needed any repairs at all. And I just hit 147,000 miles.
Of course I do my own fluid and brake pad changes.
I have done extensive research on this topic and have concluded that Eric The Car Guy videos have essentially made the traditional auto shop obsolete.
[quote=”Wrench Turner” post=71780]I have done extensive research on this topic and have concluded that Eric The Car Guy videos have essentially made the traditional auto shop obsolete.[/quote]
That’s a very good point. I realized that you can make more money going to people’s houses and doing minor repairs than working in a shop. For example, if you say $150 + parts you will come away with more cash than people inside a garage. $50 for your gas and $100 for you labor.
- You must be logged in to reply to this topic.