How much would you pay?

Status
Not open for further replies.
C

Chris142

Joined
Jun 5, 2003
Messages
30,530
Location
Apple Valley, California
With winter coming we are trying to drum up business. Anything is better than sitting around all day.

Been doing some oil changes but a few people said we charged too much.

Say a regular car such as a 200 Buick comes in.

I can buy a quality oil thats GF5 and SN rated for $2/qt and a filter for another $2.. Say the car takes 5 qts.

I'm into this job $12 in parts.

We throw in $20 for profit and labor making the job cost $32 before taxes. The job includes putting the car on the lift. Checking brakes,belts,hoses,air filter and filling the differential,ps,window washer etc.

Plus I make sure that the old oil filter gasket did not stick to the block.
Some customers are complaining that we are too high.
 
Some people think Oil changes should be 9.99 because other places use it as a loss leader to hard sell you on other repairs.
 
Originally Posted By: Chris142
Some customers are complaining that we are too high.

What are they basing this on? Are there other oil change places in the area that charge less? I know many lube places are willing to underprice their oil changes, just to get you in the door and try to upsell you on other work.


As far as oil, would buying in 55 gal drums be cheaper than buying by quart? Or is that not practical for you guys?
 
But as far as your original question, personally I think paying $20 for labor is reasonable. It's just that in my case, I actually like changing oil, so I wouldn't typically pay anyone to do it, unless I just really had no time and it was overdue. However, if you have time to drive out to a shop and wait for them to do your oil change, then you probably also have time to just do it yourself.
 
Probably be better if you can pair something like a tire rotation or other no-parts work with it to make it look good.

I.E. Oil/Filter/Lube and Tire Rotation/Inspection for $40 or something like that.

Originally Posted By: Chris142
With winter coming we are trying to drum up business. Anything is better than sitting around all day.

Been doing some oil changes but a few people said we charged too much.

Say a regular car such as a 200 Buick comes in.

I can buy a quality oil thats GF5 and SN rated for $2/qt and a filter for another $2.. Say the car takes 5 qts.

I'm into this job $12 in parts.

We throw in $20 for profit and labor making the job cost $32 before taxes. The job includes putting the car on the lift. Checking brakes,belts,hoses,air filter and filling the differential,ps,window washer etc.

Plus I make sure that the old oil filter gasket did not stick to the block.
Some customers are complaining that we are too high.
 
Who gives a rat's behind what they think? You gotta look out for number 1 first and you're not doing that if you're losing money.
 
Originally Posted By: Rand
Some people think Oil changes should be 9.99 because other places use it as a loss leader to hard sell you on other repairs.


bingo!

gotta drop your prices and upsell, upsell, upsell!!!!

That's the only way to get anywhere in an unhonest industry like that
 
I hope this is your method:

You don't look for ways to sell them stuff they don't need. Your price is fair b/c it covers the real costs.

You don't compete on lowest price, the job is too important to assume it should be done cheap.

$34 for regular oil, $48 for synthetic.
 
Last edited:
Originally Posted By: Quattro Pete
Originally Posted By: Chris142
Some customers are complaining that we are too high.

What are they basing this on? Are there other oil change places in the area that charge less? I know many lube places are willing to underprice their oil changes, just to get you in the door and try to upsell you on other work.


As far as oil, would buying in 55 gal drums be cheaper than buying by quart? Or is that not practical for you guys?

Not really practical. I need 5w20 for some cars,5w30 etc. Then you get the one guy that wants something weird. I cant and dont have room to stock that much product.
 
Originally Posted By: The_Eric
Who gives a rat's behind what they think? You gotta look out for number 1 first and you're not doing that if you're losing money.

Really? A business shouldn't care what potential customers think of their pricing? Looking out for number one requires getting customers through the door and if someone thinks you are too expensive, they will/may not come through the door for that particular product or service.

OP, that price sounds fair to me. The Jiffy Lube nearest me is running a $10 off conventional oil change special, which puts the price at $26.99.
 
People are probably comparing your price to that of the coupons and flyers for a $19.95 oil change. But most of those people are paying $75 when they leave the quick lube place for add-ons.
 
People are cheap. They want to spend the least amount of money as possible. They just want the oil changed. They dont want an up-sell, they dont want an inspection, they just want an oil change. And if some shop down the road is willing to do that for $19.99, than to them, you are over priced. They don't care about your taxes, your rent, your power bill, your workman's comp insurance, all your other business expenses, they just care about their bottom line.

Trying to make a profit on oil changes is a terrible way to make a living, honestly.

The only way to be profitable is to up-sell other repairs(coolant flush, engine flush, fuel system flush, air cleaners, cabin air filters, tranny fluid, differential fluid, etc)
 
Originally Posted By: Chris142
Originally Posted By: Quattro Pete
Originally Posted By: Chris142
Some customers are complaining that we are too high.

What are they basing this on? Are there other oil change places in the area that charge less? I know many lube places are willing to underprice their oil changes, just to get you in the door and try to upsell you on other work.


As far as oil, would buying in 55 gal drums be cheaper than buying by quart? Or is that not practical for you guys?

Not really practical. I need 5w20 for some cars,5w30 etc. Then you get the one guy that wants something weird. I cant and dont have room to stock that much product.


That's why you set up an acct with a parts supplier nearby and charge the customer a small increased price (over your cost) to accommodate him.
 
Originally Posted By: Chris142
With winter coming we are trying to drum up business. Anything is better than sitting around all day.

Been doing some oil changes but a few people said we charged too much.

Say a regular car such as a 200 Buick comes in.

I can buy a quality oil thats GF5 and SN rated for $2/qt and a filter for another $2.. Say the car takes 5 qts.

I'm into this job $12 in parts.

We throw in $20 for profit and labor making the job cost $32 before taxes. The job includes putting the car on the lift. Checking brakes,belts,hoses,air filter and filling the differential,ps,window washer etc.

Plus I make sure that the old oil filter gasket did not stick to the block.
Some customers are complaining that we are too high.



Price high and then offer a discount. People fall for that all the time.
 
Originally Posted By: Chris142
The job includes putting the car on the lift. Checking brakes,belts,hoses,air filter and filling the differential,ps,window washer etc.

Do the cheaper places do all of this? If not, explain that to the customer. Tell them they're not getting just an oil change, they're also getting all of these other things. Make them feel they're getting value in that extra $10.
 
The thing is, you're going to find at least SOMETHING wrong with pretty much any car that comes in. Then when you mention it, it looks like up-selling.

As others have mentioned, the "check-up" usually results in angry (cheap) customers.
 
Status
Not open for further replies.

Similar threads

C
Getting a new engine from Hyundai
2 3
Replies
48
Views
2K
440_Magnum
Fa24wrx
Interesting convo with local kia service advisor
2
Replies
39
Views
2K
dishdude
John105
Do you have an order or build sheet for any of your vehicles?
2 3
Replies
54
Views
1K
Nyati
Boomer
My Random Thoughts on Keeping a Car Running for a while
2 3 4
Replies
63
Views
6K
Sweetride
J
New car for my wife.
2 3 4
Replies
62
Views
6K
TomYoung
Back
Top Bottom