Bob Ulrich

Editor

Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993. He has won numerous awards for editorial and feature writing, including five gold medals from the International Automotive Media Association. Bob earned a B.A. in English literature from Ohio Northern University and has a law degree from the University of Akron.

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The more oil changes change, the more they stay the same

By: Bob Ulrich

The average oil change in 2011 cost $20.55. Remember when you offered it for under $10?

There have been other changes in oil,lube and filter changes over the years. Conventional  vs. synthetic. The elimination of the "lube" part. The addition of services, such as "free" tire rotations.

But one thing hasn't changed: the importance of oil changes to your tire sales and automotive service business.

According to DesRosiers Automotive Consultants Inc., oil changes drive the aftermarket, particularly tire sales.

“If the (car dealer) or independent does the oil change, they get the tire work, and it doesn’t matter what age of vehicle they service,” says President Dennis DesRosiers.

According to the 2012 Modern Tire Dealer Facts Issue, some 80% of independent tire dealers offer oil changes. They average 133 jobs a month.

The advertised cost of a standard oil change -- now a synthetic blend -- was up 2% from 2010, and 21% from five years ago. Just look at the steady increase in the advertised price of oil changes since 2006 (read right to left):

Service         2011      2010      2009      2008      2007      2006
Oil change   $20.55   $20.16   $19.83   $18.99  $16.98   $16.11.

In terms of frequency, no other automotive service comes close to the oil change. However, competitiveness in the aftermarket makes it the second largest regular maintenance item in terms of dollars, according to the Automotive Aftermarket Suppliers Association (AASA).

In its latest "World Motor Vehicle Market Report," the AASA says tires rank number one, accounting for nearly 50% of the market, while oil changes are next at 22.1%.

Can the oil change make or break a tire dealership as large as, say, Discount Tire Co. in Scottsdale, Ariz.? That's a trick question. With more than 800 tire outlets in the United States and close to $3 billion in yearly sales, Discount Tire is all about tires. It doesn't offer oil changes.

But what about you? Can you get along without them?

Related Topics: Discount Tire Co., Facts Issue, Oil changes

comments

1. Scott | January 17, 2012 at 05:48PM
   We work off of an incredibly high car count. Achieved by trying to do 100 oil changes per day. No tricks. No surprises. Just an honest major brand oil change for the not lowest price of $19.95. People like the fact we do not come back to the lobby each oil change and recommend this or that. Many of our competitors offer cheap oil changes and then upsell like crazy. Some days we pump 133 gallons of oil in a single day. By doing this everyday some customers will say check this or that. We gladly check what they request which ends up keeping 6 mechanics busy.
   
   Other benefits to pumping a lot of oil is that oil distributors and oil recyclers will offer enhancements. When you see customers 3 to 6 times a year you have a great chance to sell more tires. We hear everyday how customers went to xyz shop for a cheap oil change and service writer found $1,300 worth of work that was not asked to be checked by the customer. Offer a fair price oil change. Thank Them for coming in. Earn the business and you will have more work than you can handle.
   
   

2. Scott | January 19, 2012 at 08:47AM
   Scott, I respect that you are not trying to sell your customers a $1300 ticket every time they hit your door. Most cars don't "need" that anyway. However, remember that your customers bring their cars to you because you are the professional, not just because they don't feel like dropping a drain plug in their driveway. As the professional, you owe it to your customer to tell them what is going on with their vehicle even without selling them a thing. At my shop, we do about as many oil changes in a month that you do in a day. Yes, we have more time here to sell more. Not selling this or that as maintenance items is just as dishonest as trying to sell them a $1300 ticket of things they really don't need at all. This will also pump up your bottom line.