How Much Profit Is In An Oil Change?

Do oil change places make money?

While an oil change business in itself makes very little profit, the addition of extra services for each customer raises the average profit margin up to 35 percent.

Oil and lubrication service sales represent $1.6 billion in revenue for independent tire dealers every year, or $60,651 per dealer..

Who has the best price for an oil change?

Walmart offers the cheapest oil change at just $19.88. Compared to a price tag around $40.00 at Jiffy Lube, Walmart lives up to the low-price hype when it comes to oil changes. You don’t need any coupons to get the $19.88 price, but realize that this low price is for conventional oil, not synthetic.

How profitable is the oil change business?

How much profit can an Oil Change Business make? With many oil franchises bringing in nearly $250,000 a year, as the owner, it is possible to see a net profit of $75,000 to $80,000 a year.

Is it worth doing your own oil change?

Well, truth be told, you don’t really save a lot of money changing your own oil. And if you include your labor costs, you are probably better off having a professional do it for you. … You can cut your oil change costs by more than 50% if you decrease your frequency to a recommended once every 7,500 to 10,000 miles.

How often should I change my oil?

It used to be normal to change the oil every 3,000 miles, but with modern lubricants most engines today have recommended oil change intervals of 5,000 to 7,500 miles. Moreover, if your car’s engine requires full-synthetic motor oil, it might go as far as 15,000 miles between services!

How can I invest in oil with little money?

How to invest in oil with little money and without buying oil at allTrade oil futures. Considered one of the most direct ways of trading commodities without buying actual barrels, future contacts are purchased through commodity brokers. … Trade oil CFDs. … Invest in oil shares. … Trade oil ETFs. … Trade oil MLPs.

How much should I expect to pay for an oil change?

Typically, an oil and filter change using conventional oil will cost between $35 and $75, depending on your area. If your car requires synthetic oil, you should expect to pay anywhere from $65 to $125. Some people are handy and have the time and tools to replace their own oil and filter.

How much does labor cost for oil change?

The total cost of this process can vary depending on the oil type in your vehicle, the specific car you are driving, and the environment of your driving conditions. However, overall, the average oil change cost ranges between $20-85, with the labor ranging between $40-104, and the filter costing around $10.

How do I start a oil change business?

Steps to Starting an Oil Change BusinessWrite your Business Plan. … Form a Business Entity. … Select your Location. … Apply for Business Licenses and Permits. … Find Financing. … Get your Marketing Plan in Place. … Get Insurance. … Hiring Employees.

What happens if you don’t change your oil?

If the oil isn’t changed, your vehicle’s engine will start to have a lot of problems. … This can cause the engine to run less efficiently, and as time goes on, it can cause the engine components to warp and wear out. The lack of lubrication between these parts will also contribute to these problems.

Is mobile oil change a good business?

Mobile oil change businesses provide quick oil changes and other basic automotive services at clients’ sites. … The oil change services market is a $7 billion industry and continues to steadily (if slowly) grow. Mobile oil change businesses don’t need to capture much of the market to make a handsome profit.

Why are oil changes so expensive now?

This is due to improvements in engine design and onboard technology. Not only is the high-grade synthetic oil more expensive, but more of it has to be used to properly keep the vehicle maintained.

Is Synthetic Oil Better?

Synthetic oil is by far better for performance. It protects the engine due to lower levels of friction. Additives help clean the engine of deposits. And, fewer impurities mean it burns cleaner, thickens far more slowly, and has fewer deposits to start.

Is it cheaper to get oil change at dealership?

The primary one is cost: Many drivers believe dealerships will charge more for an oil change, even though it’s a relatively simple service that can be performed by just about any mechanic. As a result, many drivers would rather avoid spending more money at a dealership for such an easy service.

How much does a Valvoline franchise cost?

How much does a Valvoline Instant Oil Change franchise cost? Valvoline Instant Oil Change has a franchise fee of up to $30,000, with a total initial investment range of $181,000 to $331,900.

How much is a Jiffy Lube franchise?

Initial Franchise Fee: $17,500 to $35,000 The initial franchise fee for an operating service center that is being “converted” into a Jiffy Lube service center is $17,500, all of which is paid when the Franchise Agreement is signed.

What is included in an oil change?

Changing your oil and filter will help your vehicle’s engine continue working at its best. … All oil change packages include a tire pressure check, fluid top off, tire rotation, visual brake check, standard oil filter and our 23-point inspection.