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Oil change menu pricing


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How do you price your oil changes? I've been using my matrix for the filter and oil, and not charging labor which leaves us near the local menu prices. Thinking of using a menu which would eliminate some time required during the write up, and allow us to quote the price over the phone faster.

 

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Stop focusing on what everyone else is charging and focusing on making money. You need to get in the mindset that you are selling a service and value. When you make it about price, it's a race to the bottom or better yet attracts bottom feeders.

 

Cars nowadays don't break down as much. So opposed to offering an oil change @$30 , offer a full inspection ( on every freaking car that comes in )' oil change service, air up rotate tires, check brakes and lights. Then chage $49.99. Your selling the customer perceived value. If you want the cheapest LOF, donor come here. If you want your car fully inspected by a trained profession And not a high school kid, and made sure it's safe to drive your family in come here. You want the best possible oil and filter, come here.

 

Set your business apart. Not charging labor or even losing money on LOFs is ridiculous!

 

I rarely have people call me up and ask how much is an oil change? People come to me becusase of our reputation, customer service ( which should set you apart from everyone else) , and referrals. 90% of my phone calls are people asking to schedule an appointment! price is never brought up.

 

If you are starting out, I understand the thought of " hey I got to get people in the door", but it attracts bottom feeders who won't become your A clients.

 

Take it one step further and just charge what the suggested service from the OEM calls for. Labor is covered, your marketing as competing with the dealer, and your doing what's best for the customer and their vehicle.

 

Fwiw, my lowest price LOF is $55 which includes castrol gtx, Nippon filter, and inspection. My average LOF is $66-90 being I sell way mor synthetic LOFs and high mileage LOFs.. Better for the car/customer, has brand recognition, and I have /attract customers looking for quality now.

 

Sorry for the long post, I just feel bad seeing everyone so worried about being the best priced and no focusing on selling the value of what your selling. It's a fast ride to the poor house.

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We are not looking to be the cheapest, and we're definitely not the cheapest. We are a touch below the dealer for basic repairs and tires, otherwise only one shop in town is higher in pricing. The problem is my matrix would have me charging $90 for a conventional oil change (we sell oil by the quart which sticks it on the high end of the matrix), in turn each oil change the oil has to manually be re-priced or we don't charge labor and sell expensive oil. I was looking to install a menu board to increase sales on services customers may forget or not realize we offer. I could care less if we're cheaper but in the same respect I can't be charging $50.00 for a conventional oil change with 4 quarts, I'm not looking to overcharge but fairly charge. I'm also flirting with the idea of putting a charged inspection on the board as well. Again, the interest is not to be cheaper - it's to offer customers a menu and reduce manual pricing.

I'm thinking $49.95 for a oil change up to 5qts (leaving us at 60% gpm) and charging an additional $5.00 per qt and something for more expensive filters. Diesel oil changes I might do $129.00 to $160.00. Haven't done the math there yet.

 

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Your exactly right Joe! I'm working in the value added direction now but taking things slow. In the past I've been known to over think things like maintenance packages and price lol. I like the fact your seasonal maintenance package is very simple without tons of additional services. What type additives do you provide in that type of service? We considered trying to step back up and sell more BG services it's always been a hard sell in these parts.

 

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Each customer and each car get a different price. The Mileage based visual inspection and oil change service starts at $xx.xx and we will advise you of any other service needs or costs as they are revealed. Would you like a free hand wash with that service? You may wait in our waiting area or we can give you a ride. Yes we will pick you back up.

 

You must train your customers to be type a customers. The others will go to lowest price.

Do a random act of kindness to all so that they will give you REFERRALS!

 

I have given Free oil changes to customers in order to save them from having their car butchered by the lube in the box and they have sent me referrals worth thousands of dollars!

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I have a client (the word, client, denotes a relationship that is hopefully long-lasting) who first came in as a prospect in March, 2009. She had a mailer coupon for an oil change w/ rotation for $22.95, and asked if she was at the right place. I told her that she certainly was and welcomed her to the shop. It was a Saturday morning around 8:30. ( I just remember stuff like this!) Since she seemed antsy and apprehensive, we performed the job with no add-ons suggested. The car is a Hyundai Santa Fe. The next month she came in on a Saturday morning and said she had a roaring noise in the back. We replaced both rear wheel bearings that day. She was becoming a "client instead of a customer. This afternoon (Sunday) I went to the shop to check on things, and her car was in the parking lot for service tomorrow.

 

Long story short, she has come in time and time again for all her oil change services, tires, and other needed AND recommended services on her car. This is the proper outcome of a "Get 'em in the door" low-priced oil change. I feel it works more times than not. Also about a month ago we turned a $22.95 oil change and rotation into a $660 invoice by my salesman recommending a 60,000 mile service while the customer was checking in. Hopefully he will also become a client!!

 

Remember......"Not Shown and Not Told Means Not Sold!!"

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I have a client (the word, client, denotes a relationship that is hopefully long-lasting) who first came in as a prospect in March, 2009. She had a mailer coupon for an oil change w/ rotation for $22.95, and asked if she was at the right place. I told her that she certainly was and welcomed her to the shop. It was a Saturday morning around 8:30. ( I just remember stuff like this!) Since she seemed antsy and apprehensive, we performed the job with no add-ons suggested. The car is a Hyundai Santa Fe. The next month she came in on a Saturday morning and said she had a roaring noise in the back. We replaced both rear wheel bearings that day. She was becoming a "client instead of a customer. This afternoon (Sunday) I went to the shop to check on things, and her car was in the parking lot for service tomorrow.

 

Long story short, she has come in time and time again for all her oil change services, tires, and other needed AND recommended services on her car. This is the proper outcome of a "Get 'em in the door" low-priced oil change. I feel it works more times than not. Also about a month ago we turned a $22.95 oil change and rotation into a $660 invoice by my salesman recommending a 60,000 mile service while the customer was checking in. Hopefully he will also become a client!!

 

Remember......"Not Shown and Not Told Means Not Sold!!"

Great

Did the roaring noise start after the tire rotation you did? I like to road test all cars after rotating tires due to chopped tires causing noise, tire pull etc. Note finings on invoice.

I also check for tsb's. We had a Sante Fe customer come in for a cheap oil change that was low on oil at check in and I found a tsb about noise on start up. When I told the customer about it he stated that he had been hearing noise on start up and the oil level was low since the Lube in a box did his change last. We got him a oem oil filter and proper oil level-His noise went away.

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      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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