Most Profitable Vehicle For An Mobile Oil Change Operator

I talked about this in a previous post back in April of 2009 but its worth writing about again.

When it comes to making money off oil changes there is no vehicle I like more than those Diesel Cabovers. They are the most profitable truck you can perform an change oil change on as far as I am concerned.


No other vehicle I have come across gives me more money and less headaches for my time.

Sure, there are other much bigger vehicles that pay a lot more. But they take more time, are more difficult to work on and can be a real pain in the butt.

I have timed it and an Isuzu NPR Diesel takes me 15-20 minutes to do an oil change on. Every once and a while, when conditions are perfect, I have been able to do them in approximately 10 minutes (with two people doing multiple jobs). The reason being is that everything is easy and very accessible to get to.

I cannot praise the makers of this type of vehicle enough. Other should take note and do the same (they don't want to make their vehicles easy to work on).

All you have to do is:

1. Lift the cab up (which is the hardest part of the job as it can be heavy)
2. Unscrew the drain pan plug, which is pointing downward, and let the oil come out. It will usually be a 16 mm. Then tighten the screw
   
3. Unscrew the big round filter which will be on the right hand side of the engine. Again, very easy to get to. Pour some oil in the filter new filter and screw it back on.
4. Refill the vehicle back with fresh oil and check fluids.

I make anywhere from $60-$80 net off each one. There is no reason why you cannot do the same.

Some specifics:

• Engine holds 16 quarts of 15W-40
• Oil Filter: WIX 57521 (Napa 7521) (Cost Approx. $20)
• Newer models have no grease fitting. Older ones have two.
• Let the vehicle run for 10 minutes if its cold or the oil will take forever to drain
  

I love it when a fleet has several of these things. A smile washes over my face if I am fortunate enough to get them. No tweaking my back, no headaches and no surprises.

The gas ones are just as easy to do but they do not pay as much. You can charge a little more than you would standard passenger vehicle but not much more. They have a GM engine and will take a PO-167, PZ-48 or a PZ-5. Most gas Cabovers will take six quarts of 5W-30 but the newer ones coming out take five.

Try to find as many of these vehicles as you can. They are worth your time so actively search them out.

You want to get as many easy diesel vehicles as your possibly can so you can maximize profitability while not wearing yourself out at the same time.

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.