The oil change business is tough. I’m not going to sugarcoat it. I’ve been in the business for five years and I’m telling you this from my own experience. I’ve done more research on the subject than several people put together. I am an authority. I know what I am talking about. There is no profit, at least one can really build a business, on oil changes.
This is coming from someone who is in the business. Anyone who, no matter who he is, tells him that he can make a decent profit on oil changes, no matter what kind, he is lying. He is either lying to you on purpose to make money or he really doesn’t know. Profit from oil changes cannot, and I repeat to emphasize, cannot sustain a viable business. The entire quick-lube model is so flawed it’s almost comical. And the typical mobile quick lube model is even more flawed at its core. I’ve only ever met one guy who has what I consider to have made a real profit from mobile oil changes and his name is Lance Winslow. I have talked to the guy and he is very smart but in one of his posts he stated that he earns very little from his oil change company. He had just been one of the many companies that he has started that has allowed him to achieve wealth in this country.
All flash lubes, including Jiffy Lube, don’t make money on oil changes. Mobile oil change companies will quickly pick up on this. The cost of your typical oil change in the United States, using the cheapest oil you can find, is $15.00 with oil and filter. The going rate for an oil change in the US is $20-$30 per five-quart oil change. That means that in most states the most you can benefit from an oil change is $15.00. And that’s being liberal with the numbers and not including fuel. Fifteen dollars for an oil change is not going to sustain a viable business. Some vehicles are absolutely terrible to work with like certain Chevrolet Cavaliers and Land Rovers and will take over an hour minimum to do an oil change. What do you get for all this trouble? Maybe twenty dollars. It’s the biggest joke.
The only way most quick lube places can make money is by buying really cool add-ons. If you work at a quick lube service and don’t sell the customer additional services that they may or may not need, you will be fired very quickly. Fast lubes can’t make money any other way. They have to push unnecessary air filters, fuel filters, coolant flushes, transmission flushes, power steering flushes, rear flushes, cabin air filters, windshield wiper blade replacement, fuel injection cleaners and many others to get a minimum gain. Mobile oil change companies have to do this much less because they have lower overhead, but their profit margin also depends on additional services. As a mobile oil change owner, I really try to be as honest as possible. I really don’t want to screw anyone. But having said that, you would get very little money if the air filters lasted five years. I have to actively promote additions services to make money. Oil changes alone, even for diesels, won’t pay my mortgage. Most of the fixed locations are at my position multiplied by fifty.
Before you start changing the price of oil, think twice and think about it for a long time. It is not an easy business. Know what you are doing. I am one of the lucky ones. It’s a miracle that I made it. I wanted to give up many times. Maybe you can be the 1/20 of the people who can really make the fast lube business work. But it is really hard and it will take a minimum of two years for you to see a real profit.