Oil change part pricing

[joecool17]

Hello everyone. I just received my latest oil bill from GM invoicing and the service department is already crying about the increase in oil price. I am billing oil filters out at GM list price and oil at trade. I am curious to see how everyone is handling this? What are your markups? We are part of the national retail plan, so there is a set price for oil changes. But, with the increased cost of everything it makes it nearly impossible to make a profit. I really don't want to absorb any of the cost or lose any profit in this, as I feel that this isn't the end of the increases.

[Fixed Ops Mgr]

5W30 PART #19420077_____COST = 3.67/QT_____SELL = 5.25/QT_____GP = 30.1%
0W20 PART #19420057_____COST = 3.97/QT_____SELL = 5.70/QT_____GP = 30.3%
15W40 PART #88862611_____COST = 4.03/QT_____SELL = 5.80/QT_____GP = 30.5%

ALL ACDELCO GAS ENGINE OIL FILTERS_____COST AVG AT = 3.90_____SELL = 6.45/FILTER_____GP AVG = 39.5%
ALL ACDELCO DIESEL OIL FILTERS ARE PRICED AT GM LIST PRICE

We always target a gross profit margin of 30% on oil so as oil prices keep going up and up so does our oil pricing. We also target a gross profit margin of 40% on oil filters as well as all other maintenance parts and we usually do not have a problem hitting our numbers however it is getting harder and harder every month. When we need to hit an advertised price point and we are over that price point we choose to hold our GP margins on the parts and labor pricing so we write the difference off to advertising and it splits between service and parts at a 70/30 ratio. It just depends on how your store wishes to show the numbers on the books!

[C8RFAN]

We do the family pricing thing, so $5 for 5w30 or 0w20 a quart, and $7 for oil filters... but I have a feeling that may be changing soon with the constant increases

Excludes diesel