In reply to stuart in mn:
Mark-up may have been the wrong term here, as I expect every shop has to so some sort of markup on parts - it's part of the business. What I was trying to point out is that I don't feel like subsidizing a flailing new-car sales business in order to get work done on my 25yr old crapcan. I'll gladly pay shop rates to keep a shop open, not to pad the numbers for the other part of the business that doesn't make money.
Also, I've done the small-business-low-rate-crazy-hours thing for 6 years in a service industry. I understand that it's difficult to balance perceived value vs. actual cost. It's a challenge many of us face. Whatever the realities are between dealership service vs. independent shop, I choose independent 9/10 times because I feel I get treated better and I understand their pricing structure.
In the end, it doesn't really matter to the customer what challenges a business has to face. It's the business's job to provide a product or service that works for the customer, whether it's pricing, quality, customer service, or convenience. Obviously, bringing their car to the dealership for everything works great for a lot of people. However, it sure as hell doesn't work for me.