Automotive Industry consultancy, Network Automotive, says that the
independent sector has been far faster, than franchised dealers, to adapt to the demands of the changing aftermarket caused by the economic downturn.
Managing director Colin Bruder says independent garages have been far better at adapting to changing customer needs, losing headcount and adopting new marketing strategies, but also warns that dealers are now beginning to catch up. He says, "Independents tend to be smaller businesses with centralised management, so it is no surprise that they have been able to react to the tougher economic conditions more quickly.”
Bruder believes the more complex management structures in place at dealerships has made them slow to make changes and show the type of flexibility required to succeed in lean times. He points out for example; dealers can often lose business because they fail to negotiate with customers on price, while independents will tailor services to suit customer budgets.
He also points out that independents have been far more willing to promote their services on price, although some of the more progressive franchised dealers have now woken up to this. Overall Bruder says dealers are becoming more nimble and flexible in their approach but that independent garages are generally coping with recessionary times better.