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

[basslover911]

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?!?

[McTimson]

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.

[SVOboy]

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

[bgd73]

Originally Posted by basslover911

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?!?

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)

[Johnny Mullet]

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.

[gone-ot]

...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.

[roflwaffle]

Originally Posted by basslover911

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

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.

[gone-ot]

...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.

[wagonman76]

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.

[rmay635703]

Originally Posted by basslover911

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?!?

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.