Oil change menu pricing

[ncautoshop]

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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[xrac]

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[SMMotors]

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.

[Joe Marconi]

The controversy of oil change services always stirs up a heated debate. Many shops still use the LOF as a means to attract and keep customers. Other's say that when you advertise a cheap oil change, it sets the benchmark for all your other services, and may bring in the wrong customer.

 

I cannot state with all honesty what is right for all shops across the country. I will say that as an industry, our prices in general are too low. And if we do focus on price, we tell the consumer to please judge us on price alone. In the Northeast there is a company called, "Bob's Discount Furniture". He's on TV every night asking people to buy from him based on the price of his furniture. Most of us would go out of business with this strategy.

 

Look at your business, understand the numbers, identify what customer type will give you the greatest return and create a business that caters to this customer. You will find that people come to you not because of price but what you really offer...and that's service, quality, peace of mind and the relationship.

[ncautoshop]

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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[Joe Marconi]

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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I can see how you can into trouble with the matrix. That's a great point. Our oil changes for conventional oil runs in the $49 to $59 range, for most cars. We charge more for large SUVs, Light Trucks and luxury cars.

 

I think we need to better define the LOF and a maintenance service. What we do is to sell the idea of preventive maintenance and promote seasonal maintenance packages. So 4 times per year we offer a Seasonal Maintenance which will include an Oil Change service. The package starts at $79.00 for conventional pass cars. We perform a list of inspection item inspection, an engine additive and the tire rotation, if needed. People buy this for peace mind and it's more profitable that doing a LOF with the included multi point.

 

I bring this up to point out that if we bring value to what we are selling and package it with value, people will pay for value. If we sell a commodity, which the oil service has become, we are always limited to what we can charge.

 

I hope this makes sense, if not let me know so I can explain better.

[ncautoshop]

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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[Joe Marconi]

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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We use BG products. BG has great products and a great lifetime protection program, which you should consider promoting too. For vehicles under 75k, you can add a lot of value to what you sell. Selling preventive maintenance is key. People are keeping their cars longer, way beyond the warranty. And why not give your customers peace of mind.

 

Great post!

[xrac]

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[FROGFINDER]

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!

[carolinahigear]

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!!"

[FROGFINDER]

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.