Part 2: 2 employee ( full time) 160 hr/ month * 2 at $15/hr $5k per month for 2 employees Say 2 trucks of 550+550 (x2) $3300->>>$6600 2200 quarts of oil- 550 [4 quart oil change] some vehicles use less, some more. [4 average] Cost: $5k 2 full time 40h/ w 4w Oil: 2 trucks $6600 Total: $11,600 550 oil changes $40 ea Earn $22k "Profit" $10,400 But materials ( gloves, oil filters, etc.. Oil filters... Bulk $5 each?) Gloves/ etc. $500/m Oil filters 550- $2750 So true profit of "$7k"/ m But- overhead costs, Recycling costs, Days to day, And customers complain about $40? A 5qt is now $30 ( unless you buy in bulk) Filter is $7-10 Time: 20 minutes So cost is 20 minutes, $37-$40 Plus it's slightly messy. I got a 5 qt + filter for $37 (syntheti) It's $37 every 8,000 miles $3 more to pay and they're fussing? LoL.
Conventional/ synthetic 526 qt + 550 qt- 1,076 qts Each vehicle takes on average 3-5 quarts So 210-350 oil changes At $40 each $8,400- $14,000 - $1,000-$2,000 for the employee (70-140 hours) $15/ hrs Minus the "$3200" $8-14k Minus ($2k +$3.2k) $5.2k Making $3k-$8.8k If that's per month, then nice. That's a decent amount of profit. [And] a well decent price for an oil change.
Ok let me check if my math is correct. If you have 550 liters (581 Quarts) and average oil change is 5 quarts, that’s 116.2 Quarts of oil. At $40 a pop you are looking at $3,137.40 for 116 oil changes. Assuming you use a basic oil filter to keep cost down at around $4 a filter that’s around $3602.2. So with your cost of $1622.7 + $464.8 for filters your total is coming around $2087.5 (Your cost). Making you a profit of $1514.7 (Before Taxes). Going off GA’s Average Labor pay at $19.46/hour at 116 oil changes that’s $2,257.36. So that leaves you with a total profit of -$742.66. So yeah Oil changes are not the money makers for shops, and all I can say is I hope you find other things wrong with the car to help you make more money. I feel ya man!
I used to work at a lube shop just doing oil/some easier spark plugs and eventually brakes as long as I was there and when I was mostly doing oil they told me I wasn’t making enough to pay my wages - oil changes don’t pay the bills they’re a foot in the door thing
@@wyattandwill12 ive seen the numbers for strictly oil changes, and i can promise u that most shops can afford to pay their people better than what they do, add in the fact that a good team can sell the hell out of bulbs, filters, wipers, oil upgrades etc... ya, most shops can afford to pay their people better than what they do.
@@shawnluzier5940 Part of me wants to be a lube tech again when I move but it would have to be after I’m done paying my credit cards off because I’ll be lucky to make $15/hour with 40 hours/week doing that, even in the city where I’m gonna be moving to. If you’re not a full on technician you’re padding the owners’ pockets and drilling holes in your own. It’s like my current job where I make $13.50/hr and one of the owners does literally nothing for the business now and gets paid probably over double what I do (although she worked there 15 years before the owners divorced and she moved out of state). One good side of that is that when I plan my future budget I base the income off of what I make now and not what I would down there because I can easily beat what I make now if I have a full time job and then maybe DoorDash or something if I feel like it with the rest of the day.
i work for Safety Kleen.. and im the Bulk ohio guy …my Truck is different tho..i have a box truck that hold 8 330 gallon totes of oil…. i wish i had this truck.
This was a great breakdown & insight behind scenes. Thanks for sharing! Just out of curiosity what are your oil weights you running , conventional & synthetic?
so 5 litres of bulk is 15 dollars, add a filter and a oil drain plug washer and oil disposal, .25 hrs labour and its up on a lift taking up a bay, wow how can you make money at $40. This must be a loss leader to build the customer base. Thanks for the insight.
Yup I can tell you he's being honest because the shop I work at, oil changes are just more of a convenience for our customers but not money makers, since we have many customers that have been bringing there cars to us for 40 years or more. But the trust factor is so big that these same people know that if their car needs something else done to it we will provide them with that service as well and treat both them and their car right
Or, we could be worn out from overpaying from everything (cost to purchase cars, extremely high labor rates, high parts markups, and service people acting like we're there to serve them) that we would really appreciate being taken care of (even though you don't make as much) on the little, more routine things like an oil change. It's called customer satisfaction, especially when your pockets get lined in a multitude of other ways.
@@Ezekiel336-16 wanting to make a profit for my labor and time doesn't mean I don't care about my customers, dumb ass. Do me a favor. Tomorrow, walk into work and tell your boss that you want lower pay so that the commodity can be passed along to your customers at a cheaper price. Let's see if you care. Or be a man and learn how to take care of your own car instead of bitching about the prices.
They paying $90-130 and paying it all day, for an oil change on the west coast, might be worth changing location if youre looking for profitability for basic jobs
Property lease prices are sky high on the west coast so service center owners over here have to charge more because their monthly rent is super high too. Oil change where I work is $140
