I'm not arguing with the revenue part, but icing on the cake is what makes it worthwhile for most investors that put up the capital to go into business. So while parts and service may be the low-margin bread and butter, investors and business owners are seeking sweet profits, not just the checks to cover bills and payroll. Fixing cars can be an honest work, but you don't typically see windfall profits, fancy offices, bling cars and Brioni suits for the boss. If you look at a typical gritty indy service shop and the guy that owns a chain of dealerships that cover half of three auto-malls, the difference is obvious.

 

True, but I think the vehicle owners pay too little for vehicle repairs. I have seen the price of vehicles go up but the hourly rate hasn't gone nearly as much up in comparison. Therefore, you end up with mechanics not getting paid as much while living expenses continue to rise. Then the mechanics do some moonlighting to help pay bills, charging way below thehourly rate indy and dealerships charge. The 'customer' then rants and raves about the hourly rate at the local shop when their mechanic 'friend' only charges half(or less) then the other shops. They then go off and tell all their other friends that the repair facilities are ripping them off. The friends then go to a moonlighting mechanic and soon, he is busy all day at the shop, then goes home and is busy all evening and weekend repairing more vehicles. The repair facilities see their customers going away and drop their rates and tell the mechanics that business is slow and no raise this year(again). Then the mechanic takes more moonlighting jobs to cover the pay loss.

Just my $.02
Speaking from personal experience of myself and many other mechanics out there.

Partly explains why mechanics drive beaters and don't have Brioni suits.

Me venting...take it or leave it...it of course, does NOT apply to all shops and mechanics.

 

Worked for a VW/bmw dealership for three months, left because no work. the Beemer guys had eighty hours a week and the vw guys had none, they did more barn jobs then regular work after hours and on the weekends. And this was actually in the shop. There was no motivation to do extra work cause the writers didn't do their job and management didn't understand they were losing money.


oh and Sales make on average 400 to 1500 dollars for a new vehicle. A little higher with a higher price vehicle but most domestics have thin margins. Yes they make money off of financing but Sales doesn't carry a dealership all that much. Its the service and parts dept that makes all the money.