Sunday, August 8, 2010

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!

1 comment:

  1. I see a lot of issues with doing the non-commercial market.

    1. More and more people are using "rating" websites like Yelp and Angie's List. I've seen businesses go under due to bad ratings. Some deserved it, some didn't. If you make a single mistake or the client thinks you did, you're done. Is it worth the risk? Not to me.
    2. Stocking dozens of different types of filters, a lot of the time you'll never use.
    3. More of a chance to find shoddy previous work that you have to fix.

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