‘Mobile oil change’ companies have terrible profit margins
The oil change business is tough. I’m not sugarcoating it. I’ve been in the business for five years and I’m telling you first-hand. I have done more research on the subject than several people put together. I am an authority. I know what I’m talking about. There are no profits, at least one can build a business on oil changes.
This comes from someone who is in business. Whoever, no matter who it is, tells you that you can make a decent profit from oil changes, no matter what kind, is lying. Either he’s lying to you on purpose to make money or he really doesn’t know it. The profits from oil exchanges cannot, and I repeat for emphasis, cannot sustain a viable business. The whole quick-lube model is so flawed it’s almost comical. And the typical mobile rapid lube model has even more flaws at its core. I’ve only met one guy who I think made a real profit from mobile oil changes and his name is Lance Winslow. I’ve talked to the guy and he’s very smart, but in one of his posts he said that he earns very little from his oil change business. He had just been one of the many companies that he has started that has allowed him to achieve wealth in this country.
Every quick lube, including Jiffy Lube, makes no 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 current fee for an oil change in the US is $ 20 to $ 30 for each five-quart oil change. That means that in most states the most you can earn from an oil change is $ 15.00. And that’s being liberal with numbers and not including fuel. Fifteen dollars for an oil change is not going to sustain a viable business. Some vehicles, such as certain Chevrolet Cavaliers and Land Rovers, are absolutely terrible to work on and will take at least an hour to do an oil change. What do you get for all this trouble? Maybe twenty dollars. It’s the biggest joke there is.
The only way most quick-lube places can make money is by buying really cool add-ons. If you work on any fast lube and don’t sell the customer the extra services they may or may not need, you will be fired very quickly. Fast lubricants cannot make money any other way. They have to shove unnecessary air filters, fuel filters, coolant flushes, transmission flushes, power steering flushes, rear flushes, cabin air filters, replacement windshield wiper blades, fuel injection cleaners, and many others to get even a small profit. Mobile oil change companies have to do this much less because they have lower overheads, but their profit margin also depends on the additional services. As the owner of a mobile oil change, I try to be as honest as possible. I really don’t want to fuck anyone. But having said that, you would gain very little if the air filters lasted five years. I have to actively push add-on services to make money. Oil changes alone, even for diesel engines, will not cover my mortgage. Most of the fixed locations are in my position times fifty.
Before starting an oil change price, think twice and think long and hard. It is not an easy business. Know what you are doing. I am one of the lucky ones. It’s a miracle that I did it. I wanted to give up many times. Maybe you can be 1/20 of the people who can really make the fast lube business thrive. But it is really difficult and it will take you a minimum of two years to see a real profit.