--- How do $19.99 oil change places do it?! ---
 

Ok, so If I go to autozone, pepboys, etc. I can get the diy oil change (5qts and an oil filter) for about $15 (plus tax).

So how do all these $20-25 oil changes do it? They have to pay for labor (probably 20mins for one oil change), and the location every month, and insurance, etc etc etc.... ?

How much could they possibly get a wholesale price of oil and filters for?!?

Probably by overcharging for the other stuff they do, like suspension stuff, tires, and minor tuneups. The $20 oil change gets you in the door, and then they point out other things that might need work, and suck the money out of you.

Tim already mentioned the low-price leader thing, but they also buy crappy oil in 500 gallon barrels, which I'm sure makes the oil a lot cheaper :p

if the oil is in large drum it is cheap. the filters could be a set standard before name brand slapped on (its a sick world, I worked at quick lube 15 years ago). it could be a fram, it could be alot of things...

a tip to you: demand bottles, bring your own filter.My ol sube needs the tough guard with bypass screened (I gain a full open pressure relief at 65psi every morning) .

Else, it really is simple, not much to worry over.

I serviced almost 2000 last I knew. Not many need a special filter. In fact the EA sube engines is the highest (and only) real life pressure that needs to kick open relief to avoid hurting itself with 100+psi (aviation standard)

Buying in bulk makes it all cheaper. If you buy cheap stuff in bulk, then you got a lot of crap to get rid of.

...most new cars use 5W-20 oil, but the oil guys typically only stock 10W-30, etc., and make you pay MUCHO-MUCHO for the correct weight oil...then, throw in the "disposal" fees and you're closer to $50-$60 or more, with synthetic (Mobil 1, Kendall, etc.) even higher.

Wholesale filters are only a couple bucks each, and oil is around $1+/quart, so they can at least break even. The biggest thing is being able to point out other problems, and get money from other work, as was mentioned.

...in the merchandising business, it's called a "...LOSS LEADER..." A low (or under) priced item that "...gets foot traffic through the door..." and thus potential "...add-on..." sales.

Buying in bulk. And being a business they can buy for a heck of a lot less than we would be able to buy the stuff for, even in bulk. And being a big chain like most of them are, their quantities are bigger since they can use the buying power of the entire company, hence a bigger quantity discount.

And by all the other services they constantly push on you, with the fact that many people go for it.

You do know you can buy cheap detergent gasoline rated dino oil for $.69-$.89 cents a quart in a normal store most any day of the week? I don't use the stuff instead paying mucho grande for synthetic but it is available at places like fleet farm.

Lets be generous $5 or less for oil and filters can be had very cheap as well if you buy multiples. So yes they can make money on the 10 minute oil change.