WHY MAD HATTER?
The face of the automotive repair industry is changing. Automotive specialty shops have long commanded the market share in the aftermarket automotive repair industry. The big industry leaders made their mark on the automotive repair industry scene beginning in the 1950's. Their goals and plans at the time were sound and have been profitable for decades. However, the bell weathers of industry specialization are now faced with the challenge that has been looming in the background for the past 15+ years.
There was a time automobile specialization had its place in the market. Shops that tried to maintain their identity as Radiator experts, Brake experts, Exhaust experts, etc . . . have been forced to change their focus or meet the ultimate demise of closure. Look around your local community and try to find a radiator shop that's still in business. If you are able to locate one, it is probably a locally owned struggling business. Now, the under car specialty shops are faced with the same dilemma and are trying desperately to reinvent themselves as total car care shops.
The large automotive under car specialty shops have been fighting to maintain market share for years. Since 1999 the largest of these operations has seen a constant decrease in their earnings and stock prices. They finally realized they must change their method of operation in order to survive.
A change in operation was paramount and could only be achieved by de-levering their balance sheets by reducing interest. This was achieved in 2003 by shedding their unprofitable parts businesses and outsourcing to the parts retailers. Stock prices increased largely as part of better financial position. Future plans are to further reduce debt and interest by selling their exhaust manufacturing plants and requiring their franchisees to purchase parts (to include exhaust) from aftermarket retailers.
Let's sum up how the changes of this major franchisor will impact their franchisees' operations:
- Franchisor no longer provides parts or warranty.
- Franchisor limits franchisees ability to expand services.
- Franchisee will have to purchase parts from specific retailers.
- Franchisee has little to no flexibility to purchase parts from other sources.
- Franchisee has little authority to flex their buying power with local parts warehouses.
- Franchisee is forced to operate similar to independent shops without ability to expand services.
- Franchisee will always have the stigma of being an exhaust shop.
The reinvention efforts of these major under car specialists will be a strenuous process for the franchised operations. This is the biggest reason why you should choose MAD HATTER AUTOMOTIVE CENTER over the major franchisors.
Mad Hatter will not limit you to doing specialized repairs. Mad Hatter maintains the name recognition of a franchised operation without the stigma of being a specialized shop. Customers are more likely to bring their cars to a Mad Hatter for auto repairs before they will take it to the shops that are known for exhaust and brakes.
