Sunday, August 8, 2010

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.

3 comments:

  1. I really like your blog I am starting my own mobile oil change business. I am bookmarking this site right now. Do you own a mobile oil change business?

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  2. Hey guys, not sure how often you check this, but we would love to work with some mobile oil change places. Give me a call, 877-362-9082. Or email me ben@ftlsupply.com. Let me know you saw this and I will give you a discount.

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  3. I love how you have raw data on excel sheets available on your sight Ben, I am definitely checking you guys out. However, I have a really good oil distributor in Albuquerque where I don't have to pay shipping etc. But I might have to use you guys for some specialty filters etc.

    Great sight though since No Other oil distributors EVER put prices online or do comparisons upfront for you I had to make a ridiculous excel book where you can type in any prices and it outputs data like you have except it also makes ROI, balance sheets and break-even points off it. Check out http://abqoilchange.com leave me feedback on what you all think

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