Car Repair Prices: Why Your Oil Change Is Never Just

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Car Repair Prices: Why Your Oil Change Is Never Just An Oil Change

For a repair shop, there is little profit in the $29.95 oil change. By the time a shop pays its technician, pays for the oil, the filter, and the hazardous waste disposal fees, theres no money left.

This low profit margin is worsened by the extremely competitive Quick Lube business, which forces local repair shops to refrain from raising prices, despite rising costs.

This all begs the question: If oil change specials, which range from $15.95 to $29.95, clearly produce very low profits, then why do so many service facilities advertise oil change specials?

The answer is actually very simple: It gets you in the door. Service centers know that once they have your vehicle, they can sell you additional work.

Suggesting additional work is called upselling, and its a primary profit tactic of every service facility.

Heres a typical example. You drop your vehicle off for just an oil change. Upon completion your service representative smiles and proudly states, We noticed that your air filter was dirty; so we popped in a new one. You may think “Great; what wonderful...

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