Oil Change Prices for Oil Can Henrys

I am a firm believer in duplicating successful businesses and not attempting to re-invent the wheel if possible.

While the mobile oil change business serves an entirely different niche than the fixed quick lube locations they still offer the same services and therefore I would recommend you adjust your prices to meet theirs.

Who is "theirs" exactly?

The leaders in the the oil change industry.

Where I live it would be Jiffy Lube and Oil Can Henrys. I do not pay attention to anyone else. Whatever they make their prices is what I would make mine.

Here is a price list for the services of Oil Can Henrys in the Pacific Northwest. They may be slightly different depending on where you live but they will not be too far off. Keep in mind that oil change prices are based on five quarts and the oil used at this particular place is Castrol.

Conventional Oil Change $38.99
High Mileage Oil Change $58.99
Synthetic Oil Change $78.99
Synthetic Blend Oil Change $58.99

Cooling System Flush (Coolant Exchange) $89.99
Automatic Transmission Flush (up to 14 quarts) $119.00
Power Steering Flush $84.99
Engine Flush (removes gunk from your engine) $59.99

Fuel Filter Replacement $59.99 and up
Gear Box Service $49.99 (extra charge for synthetic and additives)
Cabin Air Filter $44.99 and up
Air Filter Replacement $12.99 and up
Serpentine Belt Replacement $79.99
Wiper Blade Replacement $12.99 each
Wight Bulb Replacement $7.99 and up installed
Additives and Treatments $13.99 and up

Now one think that I really like about Oil Can Henrys is that they offer a slew of packages. Customers like options and this particular fixed location offers just that. They have five "Value Packages" for a person to choose from that gives him or here a discount because he is purchasing multiple services.

For instance for $146.98 you can get the "Value Package 3." This combines a full service conventional oil change and automatic transmission flush in one price. The customer ends up saving $12 versus if he bought those services separately.

So what is my point? what am I getting at?

I am recommending that mobile oil change operators do two things.

1. Set your prices where Jiffy Lube and Oil Can Henrys set theirs. Go an get an oil change at one of these places. It will not be that expensive and see what they process is. Write down all of the prices and put your prices where theirs are. These places specialize in oil changes, have done extensive market research, and usually charge what the market will bear for these services. Do not base your prices on Wal Mart, Sears, or Midas! I view those places as something totally different altogether.
2. Offer value packages. Customers love these things. Have at least three of them. When I was at Oil Can Henrys most people picked a value package. Individuals like myself love the idea of being able to get several services taken care of at once and save money on them at the same time. Give the customer an incentive, via discounts, but you do not have to go overboard on them. Make it so that they save anywhere from $5-$20 by choosing one of your value packages.

For your mobile oil change business to succeed you need to be creative. Operators with no imagination will not stay in business for long. Nevertheless, when it comes to pricing these companies know what can be charged and you will do well to follow them closely.

Be Professional in Everything You Do

When it comes to owning a mobile oil change business it is imperative that you be professional in everything you do.

From your van, oil change stickers, clothing, and personal appearance you need to have a clean and well kept look.

Why do I harp on this so much? Its because this industry has a bad perception.

When you tell someone you have an oil change business here is what they are thinking: a grease money coming to my home or business in a truck with some oil pans on the back.

Many of my clients were worried that we were going to spill oil in their parking lot, that we were not insured, or that we were not able to handle their vehicles.

People like doing business with legitimate companies. People feel comfortable spending money with professional businesses.

You want to close a giant fleet account? If you walk into an office or company neatly dressed, your shirt tucked in, a nice portfolio of clients you already service, and your insurance information (they love it when you have this!!) then you will have a high chance of closing the deal. The key is not to look mickey mouse.

Mobile companies of any kind have a hard time of getting respect. They do not have a fancy office, no lobby, no cash register, and no offices. Its a person operating a business from a vehicle. You may have a warehouse or office but that is not what the customer sees.

If you want your mobile oil change business to be respected then you need to go out of your way to make it look like an established and respectable company. Have business cards, a nice oil change van, receipts with your logo on them (I print them out), and uniforms with your logo on it.

Branding is very difficult with mobile quick lube companies and it takes work. Jiffy Lube, Sears, Oil Can Henrys, and all the other major quick lubes not only have large signs that thousands of people pass by every day but they spend millions of dollars sponsoring race car drivers and other products.

They have become a household name not matter if they are sometimes unethical or not (some are and some are not). People feel comfortable going to them even though most quick lubes are run by a bunch of kids getting paid less than $10.00 an hour.

Be professional at all times. You want to get the large fleet accounts, charge premium prices, and have a good name in the area then act like it. Many of you are but I have seen many mobile oil change business owners operate their businesses in a very unprofessional manner.

They act like your typical "ma and pa" operation and I hate that! When you are a moms and pops operation you get mom and pops prices and customers.

The Jiffy Lube Approach to Oil Changes

To all mobile oil change business owners: this is how Jiffy Lube makes money. Copying their system in the best way you can will make you the most amount of money. Just do it in a more honest way.

An individual is driving and sees that they are 2,000 miles overdo on their oil change. They have been meaning to get it done but it has always slipped their minds. Its Saturday now and he or she is going shopping at Costco. Oh, how convenient! A Jiffy Lube is right there.

They pull in and are immediately escorted to the lobby. Nobody talks about price or what service they want, yet!

The lobby is filled with tea, cheap coffee, a soda machine, and a overhead television with usually a news channel on.

The person waits for about 10-15 minutes depending on how busy the place is. Sometimes it could be as much as 30 minutes before their name is called.

His or her name is called and they go into the bay. Now here is where money is lost or gained!

The service technician proceeds to tell the client that the car is in desperate need of the following items:

• coolant exchange
• transmission service
• air filter replacement
  
• serpentine belt replacement
• fuel filter replacement
• windshield wiper replacement
• headlights or taillights bulb replacement
• gear box or transaxle fluid replacement
• fuel injector cleaning service
• engine clean out
• cabin air filter replacement

It is his job to push one or two of those services. Sometimes he will get greedy and try to push them all yet sometimes it can backfire so he has to be careful. In half the Jiffy Lube stores the service technicians station is in the lobby. This is advantageous because with everyone watching the person does not want to look like a fool. The chances of him or her saying "yes" is greater because of "peer pressure." When the station is in the bay and nobody is around its easier for a person to say "no."

After he has either secured additional services or not the person will then be asked what oil change he or she wants. Conventional, synthetic blend, or synthetic are the options followed by the desired weight. No prices are given unless the individual asks for them. Sometimes there is a price list in the lobby and sometimes there is not.

Most people never leave Jiffy Lube or any other quick lube company without paying a $60-$120 bill. These places make little to no money off the actual oil changes. Its the additional services that allow them to make a profit.

Now what does this have to do with a mobile oil change business?

Like Jiffy Lube mobile operators need additional services as well. True, we make more money off oil changes due to having a significant less amount of overhead.

But we still need additional services. Its a part of this business. Just do not go overboard on it. Air filters and fuel filters are the easiest ones to push and make vehicles will need them.

Additionally, do not talk about price too much. If they ask tell them but do not advertise your prices all over the place. You should have standard prices and they should be based on what the market bears in your area. Some parts of the country demand less and that's just the way it goes.

Your ticket average needs to be $60 per vehicle for you to stay in business. How you really clean up is when you can have that kind of ticket average and do at least ten cars in a row. That is why mobile oil changes should just focus on fleets and not single cars or trucks.

If you are not very good at it you will have to transform yourself into a salesman. Many automotive techs are not good at talking to and conveying information to their customers. The better you are able to articulate the service you want to do to their vehicle, why it needs to be done, and the benefits they will experience to having it done the better chance they will agree to it. Also the better you look the better chance you will have. Be clean cut, nicely shaven, have your shirt tucked in, and never appear as a typical "grease monkey." Individuals feel more comfortable with the professional look. I know you are working underneath cars and that's why you should have a pair of coveralls and wear gloves when you are doing so. But when you are talking to customers you should be dresses in a polo shirt with your logo on it, some jeans or dark khakis, and a belt. Think my standards are high? I always got my customers to say yes because of it.

Why Every Mobile Oil Change Operator Should Just Do Fleets

One of the main reasons why people do not make money in the mobile oil change business is because they target the wrong kind of business. When me and my uncle started our business back in 2004 we we sold on doing ten oil changes at day at $49.99. It was a special synthetic called Oil Extreme, which to this day I think is some good stuff, and our net profit was just a little under $30 once you included not only the price of the product but fuel, paper towels, invoices, and other misc items.

If we would have stayed with that model we would have been out of business. We quickly figured out that its all about fleets. The individual customer just does not pay. You risk lawsuits, annoyances, cheap people, and tons of hassle for peanuts. Those things I just mentioned are fine when you are being well compensated for your trouble but when you go through all those things and just make $20-$40. That's small time baby stuff.

You want your mobile oil change business to be a lot like Jiffy Lube. One car or truck after the other as fast as possible. Line a row of vehicles up and get to it. If you can do at least ten in a row you are doing good. Even if you were to make just $20 off each vehicle when you can knock them out in just ten to fifteen minutes you are doing great. That's at least $80 an hour. And there are bound to be some add ons so you will easily be at the $100 an hour mark.

Personally I am a huge fan of heavy diesel vehicles for many good reasons. They pay more money and usually have more space underneath them to operate. These trucks just take more oil and larger filters. That is the only catch and because of that they are considered "harder." A newer Toyota Corolla is harder to do an oil change on than a diesel Isuzu Cabover and yet your profit is 2-3 times as much. Get a row of those vehicles and you will have a pretty nice day :)

Hopefully I have been convincing enough. Ditch the individuals. They are not worth your trouble and I have heard people being sued by them. Many times these individuals have problems with their car, either knowingly or unknowingly, and will call you out for a simple oil change. You will complete their car and then something will go wrong. Guess who they will blame: your oil change company. "It was working before you touched it," many will say. And either you will have to fight them and risk bad press or just pay for the repairs out of your own pocket. Not work $20-$30 at all!