Do Dealers Make Money on Oil Changes?

Do dealers make money on oil changes?
Hardly a Loss Leader: With a Profit Margin of 35%, Oil Changes Make a Difference. Oil and lubrication service sales represent $1.6 billion in revenue for independent tire dealers every year, or $60,651 per dealer. You could also recommend an oil change every 3,000 miles.

One of the most popular and necessary services offered by car dealerships and maintenance facilities is oil changes. To keep the engine in good shape, a quick and easy procedure is needed. Many auto owners do, however, ponder whether auto dealers profit from oil changes. Dealerships do, in fact, profit from oil changes, but not significantly.

So, is the lubricant industry profitable?

Those who desire to open their own oil stores can make money in the lubricant industry. There is always a demand for lubricants because they are necessary for the efficient operation of automobiles. The lubricant industry has a considerable growth potential and relatively good profit margins.

How can I start an oil store?

The right preparation and execution are necessary before opening an oil shop. To start, you must conduct market research and determine the level of lubricant demand in your region. The next step is to pick a site that is both highly visible and approachable. The appropriate licenses and licences needed to run a firm must also be obtained. Finally, in order to offer your consumers high-quality service, you must make the necessary equipment investments and engage qualified personnel.

Is a service equivalent to an oil change? An oil change and a service are not the same thing. A service comprises a thorough inspection of the car to make sure it is in good shape. It entails inspecting the vehicle’s brakes, tires, suspension, and other crucial components. On the other hand, an oil change is just the straightforward procedure of draining the old oil and refilling it with new oil. Why is getting your oil changed so expensive? Oil changes are a quick and relatively easy task, but they may be expensive. The type of oil used, the location, and the cost of the labor are a few of the variables that affect the price of an oil change. For instance, synthetic oil is more expensive than regular oil. The price of an oil change is also influenced by where the dealership or vehicle repair business is located. High-end locations typically have dealerships that charge extra for their services. The price of labor also contributes significantly to the price of an oil change. Higher prices are charged by qualified professionals who deliver exceptional service.

In conclusion, although the profit margins are small, dealerships do earn from oil changes. On the other hand, people who desire to open their own oil shops will find success in the lubricant industry. It takes careful planning and execution to open an oil shop, including research, location selection, license and permit application, equipment purchase, and recruiting of qualified personnel. The price of an oil change varies on a number of variables, including the type of oil used, the location, and the cost of the labor. An oil change is not the same as a service.

FAQ
How long does a oil change take?

According to the article “Do Dealers Profit from Oil Changes?