The Independent Garage Association (IGA) is stepping up to advocate for business owners, as costs continue to increase, putting pressure on the industry.
As operational expenses rise, and uncertainty over new layers of cost adding to increases imposed on garage businesses over many years, especially following the Autumn Budget of 2024, many garages are being forced to assess all areas of their business.
Careful consideration of return on investment is now essential to ensure sustainability and profitability.
“We understand the challenges our independent garages are facing,” commented Jonathan Douglass, Director of the IGA. “It is important for them to know they have the option and the means to review and, where possible, realign their prices to reflect the value of their services.
“At a time where increasing income is becoming more of a necessity, we are here to help independent garages assess their strategies while speaking up on their behalf about cost burdens outside of their control.”
Independent garage costs rising
For many independent garage owners, the situation is becoming increasingly difficult. Escalating wage costs, increasing overheads, such as property rent and utilities, and, since the last budget, the looming prospect of even higher payroll costs, are all significantly impacting margins, making it tough to maintain a sustainable operation.
Having recently held a meeting to discuss the implications and find a practical solution to the unchanged MOT Fee Cap, the IGA is committed to collaborating with the government to ensure independent garage businesses are not only supported but able to sustain their services.
“We are here to help the independent garage sector find a solution to these burdens,” Douglass continued. “We believe in the strength of our community and want to empower them to take control of their pricing. We set out to help garage owners enhance their livelihood while continuing to provide first-class service to their customers.”
The IGA is encouraging owners to assess their costs and feel confident in adjusting their prices as necessary where they can.
“It is vital to set rates that are fair to their independent garage as well as their customers,” Douglass concluded. “To support members with these challenging decisions, the IGA provides access to a custom Labour Rate Calculator to help them get the full picture of their business costs and potential charge-out rates.
“The intention is that garages can base their labour charges on a percentage rate of their costs in an easy-to-use visual way, rather than basing their labour rate on what others may or may not be charging. This is not just about survival; it is about thriving in an ever-changing, increasingly complex business landscape.”
