Independent garages offer best value for money, IGA study finds

Published:  09 November, 2020

Independent garages are offering motorists outstanding value for money, unrivalled by any other sector in the aftermarket, a new study by the IGA has found.

The UK Independent Garage Labour Rate Study has been carried out by the IGA during the past twelve months to provide its members with a reference tool to establish whether their labour rate is comparable with other garages in their vicinity. The IGA has also developed a labour rate calculator to accompany the study, which will help members to review their costs and work out an approximate breakeven hourly rate.

IGA Chief Executive Stuart James observed: “The study clearly shows that in many cases, independent garages have been absorbing the rising costs involved with running a garage business, rather than passing those increases on to their customers.

“While this is great news for their customers, it is impacting on garage profit margins year-on-year, which in the long-term is not sustainable. In these difficult times, it is more important than ever for garages to build all ongoing costs into charging structures to future-proof their businesses.”

He added: “A significant number of members have taken part in this study and feedback indicates that they will use this to review their charge out rates, so they can make a sustainable margin and continue to provide their vital services to local communities.”
A hard copy of the study will be sent to IGA members in the next few days.

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