DealersEdge Professional Forums

by **Sedanman** » Thu Aug 31, 2006 9:36 am

I am wondering just how much longer I can
keep the price of and oil and filter change under $30(most vehicles). Not so sure keeping it on the low side is worth it anymore. Any thoughts on low price statagy?

by **Old Irish** » Thu Aug 31, 2006 9:43 am

AFter 12 or so years holding the price at $24.95 we increased to $29.95 a few months ago.

The lube rack is as busy as ever.....

Only the coupon clippers are likely to care, I reckon.

Cheers
DD

by **robc** » Thu Aug 31, 2006 9:54 am

I've never been that sold that price is that sensitive. I am not sure for the bulk of dealership customers it is price over convenience. In that you might have a few people go out of their way to do an LOF at the store at a loss-leader price, but mostly people either feel better about the quality of dealer service or the dealership is a convenient location for service. Plus I cant believe when the average quickly lube ticket is $85, that people havent caught on to that yet. I mean they got to realize that a $19.95 LOF must have a downside.

------------------
** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com
=====================
DealersEdge has a new FREE e-mail delivered service specifically for Service Managers.
To register to receive future issues-
http://www.dealersedge.com/serviceezine

by **Art_Mopar** » Thu Aug 31, 2006 1:35 pm

The last straw for me with lower priced oil changes occurred this past winter. Chrysler pushed me hard to sign up for a $14.95 LOF special. All it did was bring every derelict known to man out of the woodwork who never spends a nickel on their vehicle and/or it gave a discount to those customers who would have paid full price anyway. My dealer brought a Consultant in a couple months ago who confirmed the leason I learned a few months prior, charge what you feel is fair-don't discount to compete with local chains. My oil changes (today) start around $29.99. A dealership does have better trained technicians and a much greater investment in tools, equipment, training and etc.

by **topshop** » Sat Sep 02, 2006 10:09 am

Oil change pricing is very critical, especially if low car count is an issue. The solution is really pretty simple, yet rarely implemented.

Options...people LOVE options....just like you do at the restaurant.

Offer a basic, standard and premium oil change service. Adjust what you will do with each one accordingly. This way you can offer a competitive price for an oil change. $19 or $24 or $29 or whatever your market requires to be in the ball park for a basic service.

The quick lubes are either eating your lunch now or will be very soon. Many are adding services....from tires to brakes to A/C service. Ignoring these guys by insisting on a non competitive oil change price is slow suicide for any service department.

------------------
Tom Ham
AutomotiveManagementNetwork.com

by **Mike Vogel** » Sat Sep 02, 2006 11:14 am

Jiffy Lube in Souther California is up to $32.95. We raised our price to $34.88 and we include a car wash which Jiffy Lube does not.
The higher price also makes for an easier sale into a 5000 mile interval service which is factory recommended.
A few gripes about the higher price has been heard but the increase in 5000 mile services sold shows that it's working.

by **Fixedopsmgr** » Mon Sep 11, 2006 3:13 pm

I wish that VW would line price their oil filters. They are priced all over the place and it makes it hard tp price out oil changes. My lowest one is over 40 bucks.

by **Fixedopsmgr** » Mon Sep 11, 2006 3:13 pm

[This message has been edited by Fixedopsmgr (edited 10-04-2006).]

by **3760Guru** » Mon Sep 11, 2006 4:22 pm

I would definitely have to agree with topshop...

Having said that, the other side of the focus should be on quality of service / service level... customers are willing to pay more, as long as they're acknowledged as an individual, and provided with exceptional service. Focus more on your relationships with the customers, and they'll pitch the ads from the competitors (unless as stated before, they're carrying the whole center of the Sunday paper)

[This message has been edited by 3760Guru (edited 09-11-2006).]

by **Mr. Bentwrench** » Tue Sep 12, 2006 7:58 am

Amen Art Mopar!!! I'm a GM dealer in NW Ohio and our LOF price has been $15.95(Some models higher) for over a year. Those "some models" being duramax or anything that takes over 5 1/2 qts of oil. All it does is bring in the people who are unwilling to do anything else. "I'll take it to my mechanic for that" or "I can get that done for half the price" I can't get the Gm to understand that.

DealersEdge Professional Forums

Who is online