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Just curious, how are others handling the pricing of oil changes? More specifically, how are your service writers giving prices for oil changes if someone calls in? I know, I know, I know, many of you don't like price shoppers, but they still call and I would like to give them the quickest and best answer possible.

 

Example: Customer calls in and wants to know how much for an oil change on their 2002 Toyota Camry. Where does your service writer get the price? Does he/she just say 'our oil changes start at $40 for a 5 qt oil change and each additional qt costs $5?'... What if the customer wants to know how much oil their car is going to take? Do some of you guys out there have a 'cheat sheet' with a table on it showing the year/make/model/fluid capacity/price, or is everyone going through mitchell/alldata and asking the customer to hold while you get this info?

 

The reason I ask, I called a quick lube place this week, and the kid who answered the phone seemed to have the prices and info pretty quickly... Either he is really on the ball and knows his cars/fluid capicities/prices or he had a cheat sheet or computer program that had him the info quick.

 

I know at my previous employer, they had a 'cheat sheet' with all the basic prices listed for oil change/air filter/cabin filter/rotation/etc. but they were a high end dealer and could make flat rate prices for all the cars. Every oil change cost the same there, 4,6, or 8 cylinder (with the exception of one car). I don't think that's feasible in an aftermarket shop.

 

Any thoughts or input is greatly appreciated!

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We struggle with this too. I would be interested to see everyones responses. I set up standard pricing for each oil change based on a the amount of oil needed. The time for quote comes in when you have to look up the capacities and filters. Filters are the big variable since standard spin on filters can cost you under $2 but some cartridge filters can be over $10.

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I even charge the same price for all filters, and it still seems that getting the price takes too long. Maybe it's just me being impatient. Also gets worse when you find out that their car could have a 4 or 6 cylinder... Hopefully someone here with a quick lube shop has some input.

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We simplified our oil changes for multiple reasons and the main one being quality. We only use a top notch full synthetic oil and a good filter. We decided if we are going to care/maintain our customers vehicles there would be no shortcuts, especially on the life blood of a vehicle. This also makes it easier to sell because they are set prices for a 4, 5, 6, 7, and 9 quart oil changes. Some filters we lose on but most we win so it's fine. After awhile, you just know which are paper and you can add $5 to your quote.

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I ask what kind of vehicle and then tell them a 5qt oil change is 64.95. When they come in if it's more I just explain it took more oil. If you sell a top tier oil change and firmly believe it's best for the car the customer will see that and be grateful. Never had a complaint at all.

 

If someone asks for a quote and are price shopping I explain the benefits of a good oil vs cheap and make the sale every time. The type of people that don't care about their cars are not the people I want for customers.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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