Where They Make Most Money On Oil Changes

Where They Make Most Money On Oil Changes

Oil Change Add Ons

 

Would it surprise you that only 48% of revenue from quick lube chains comes from oil changes? If you ever suspected that they really can’t make that much money on and offer of a $39.99 oil change you are right.

 

Based on a IBIS world report more than half of revenue from the oil change industry comes from add on services. These include transmission flushes, cabin air filter changes and tire rotations. These services cost more and aren’t needed on that often a basis.

 

 

How They Upsell the Oil Change

 

Many quick lube shops will show you a poster on a nearby road advertising a cheap basic oil change, but when you get there they will avoid offering you that. The classic move by the shop is to explain how they have a deal on a “signature” or “premium” oil change and to then explain it’s only $10 – $25 more. What you get for this can vary, most will just include a visual check (which they will do anyways to find add on services that aren’t yet needed), some will include a fluid top up and others will be synthetic oil. The synthetic oil change is worth the extra $20 because it will keep the engine better protected and elongate the time before your next oil change is needed.

 

 

The Oil Change Bait-and-Switch

 

This is somewhat common practice when less savory characters end up under the hood of your vehicle. These can come in multiple forms, but the two most common are the oil switcheroo and not changing the filter. The oil switcheroo is just giving a customer conventional oil when they have paid for full synthetic. This deception isn’t that harmful unless your vehicle needs a high grade synthetic and only calls for an oil change once a year (certain European vehicles). This circumstance could lead to major engine damage, also if you don’t notice and head back to the same place next time around you could be taking tens of thousands of kilometers off your vehicles life. A very common oil change scam is to not switch the filter and just “change the oil”. These are fairly common, and can lead to serious damage in any vehicle. The filter works hard through the entire life of the oil to keep the oil as clean as possible. The filter also becomes dirty like the oil and by the end of the oil’s life the filter is finished as well. Therefore, the new oil has such a shorter life since there is no mechanism to clean it in the engine.

 

How to Get an Oil Change for The Real Price

 

What The Oil Change App does to help our customers never be upsold is to simply not allow it. That’s right, no other service. We change your filter and only purchase full synthetic oil. We always do a monthly inventory against our invoices to make sure for every Honda Civic there was a filter and 4.3L of full synthetic oil used and if that contractor’s numbers don’t add up they’re off the platform forever.

 

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