by Amy Antenora
Managing Editor, aftermarketNews.com
LAS VEGAS — On Sunday in Las Vegas, Automotive Aftermarket Industry Association Chairman Dave Caracci led a panel of successful service dealers through a candid discussion on the current state of the independent service dealer business and the increasing competition from OE dealerships. The discussion took place during the afternoon sessions of the University of the Aftermarket’s University Forum. A day full of educational seminars, University Forum is held annually prior to the kickoff of AAPEX.
With the number of miles driven growing from 208 million in 1999 to 226 million in 2003, one would guess that this would mean great things for the future of independent service dealers. However, with new car sales declining, OE dealerships have become increasingly aggressive and clever in their efforts to ‘close the loop’ with cradle-to-grave car maintenance and repair efforts. On top of this, many aftermarket businesses are reporting declining sales, plant closures and more, making it even more difficult for independent service dealers to thrive.
From manicurists and massage chairs in waiting rooms to lifetime warranties for customers who have all their maintenance work completed at the dealership, independent repair shops are finding it difficult to compete with the aggressive, big money tactics from the OEs.
Participating in the panel were five shop owners from across the country: Mark Cox, owner of Edison Auto Service in Florida; Jack Giddens, recently retired owner of Brooks Auto Parts; Mac McGovern, owner of Precision Engine in Chicago; Andy Tobias owner of Tobias Automotive Specialists in Arizona; and Bill Tyson, owner of Bill Tyson Auto Repair. Each of the panelists is in the top 25 percent of the service dealer industry with sales last year ranging from $600,000 to $3 million.
Attendees to the session made it clear that they were interested in learning how to better serve the independent service dealers. The seminar, titled “The OE Dealership & Their Triple Edge Threat and Opportunity to the Aftermarket,” quickly became an open roundtable discussion with questions being posed both by attendees and to them. Among the questions discussed during the session involved the value and future of countermen, the importance of marketing and brand names compared to quality and price, best practices for data sharing, electronic cataloging and parts ordering and the Right to Repair Act.
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