Work providers are having a significant detrimental impact on the garage sector, according to the Independent Garage Association (IGA).
An IGA report into consumer facing websites that provide work to independent garages explored the various business models, fees and terms and conditions deployed by such firms.
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“All work providers have the same aim,” the report read. “To make money from selling garage services to consumers. This is achieved by attracting consumers by various means of advertising such as TV, internet, social media, press and publications.”
By placing themselves between a garage and its customers, the IGA fears that provider branding can smother individual garage brand identities. Despite this preference of using own branding for garage products, the IGA noted that liability for any work generally resides with the garage.
Work providers reviewed for the report failed to disclose any details of what checks were carried out on a garage before adding them to the website.
In addition, the IGA found work provider business models to be complex. Models include bidding sites that are “just a race to the bottom on price”, comparison sites that show a selection of prices, booking sites that use a set price, and membership-based providers that are selective.
Previously, work providers have charged garages as a means for making money. However, the IGA has observed a rise in the number of companies now charging the customer an additional fee on top of the garage price. One particular provider was found to be charging 6% of the invoice value as an admin fee, paid directly by the consumer.
“One of the major strengths of independent garages is their ability to provide a far more personal experience for the customer, building a relationship that often spans several generations of customers,” said Stuart James, chief executive of the IGA. “These third-party disruptors have a significant detrimental impact on the sector by placing themselves between the customer and the garage, ‘skimming’ a fee from either the garage, the customer or both.
“The IGA firmly believes independent garage businesses should continue to engage directly with customers and promote their own brand and image.”
