Trends in the Oil Installer Market Point to Increased Sales for Dealers

According to the National Oil & Lube News (NOLN) 2010 Fast Lube Operators Survey, installers earned increased sales from add-on products and other services, while the average price for a lube, oil and filter service using full-synthetic motor oil rose compared to 2009.

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The trends indicate a shift in the installer market favoring businesses that offer customers the services and products provided by the AMSOIL Installer Program, including a broad range of lubricants and lower-priced full-synthetic oil changes.

Survey Facts

Survey information was gathered on all facets of the installer market from more than 4,200 stores in all 50 states. It divides the information into two categories: companies with less than 30 stores (LT30) and companies with more than 30 stores (MT30). LT30 stores are generally independently owned shops, while MT30 stores are corporately owned chains such as Jiffy Lube.

Prices Increasing

According to the survey, the price of a full-synthetic oil change rose to $62.39 at LT30 stores and $66.14 at MT30 stores, nearly twice as much as conventional oil changes. Although sales of synthetics continue to capture a greater portion of the engine oil aftermarket, the higher price points installers are charging may be hurting business. In fact, while sales of synthetic oil changes rose 2 percent at LT30 stores compared to 2009, they remained flat at MT30 stores. The low price of AMSOIL OE Synthetic Motor Oil allows installers to charge considerably less while still realizing increased profits compared to conventional oil changes. With a suggested oil change price between $44.50 and $49.50, OE provides an appealing option for motorists who are interested in synthetics, but have balked at their higher price.

Amsoil Oil Change Shop

XL Synthetic Motor Oil also compares favorably. With a recommended price between $64.50 and $69.50, an XL oil change is priced comparably to competing synthetics, but carries the added value of extended drain intervals. Customers are more willing to spend the extra money when receiving the savings and convenience of fewer annual oil changes. Installers, meanwhile, can earn more profit selling two XL oil changes to a customer per year than they earn selling five conventional oil changes.

Expanded Services and Addon Products More Important

In addition to oil changes, customers today are frequenting installers for transmission, differential, coolant and other services traditionally offered primarily by garages and dealerships. Add-on products accounted for higher sales, helping increase average ticket totals for all installers by about $2 compared to 2009. To diversify services and boost profits, 74 percent of LT30 stores now perform oil changes on recreational vehicles, 28 percent on commercial vehicles and 13 percent on motorcycles.

The chart shows what percentage of LT30 stores now offer the listed service or add-on product.

Percentage of Installers Offering Service Based on NOLN 2010 Survey

ADDITIVE SALES

  • Engine Flush . . . . . . . . . . . . . . . . . . 87%
  • Pour-in Fuel Injection Cleaner . . . . . 78%
  • Coolant Treatment . . . . . . . . . . . . . . 47%
  • Diesel Fuel Additives . . . . . . . . . . . 46%

SERVICES

  • Air Filter Replacement . . . . . . . . . 100%
  • Wiper Blade Refills . . . . . . . . . . . . . 99%
  • Differential Service . . . . . . . . . . . . . 94%
  • ATF Flush . . . . . . . . . . . . . . . . . . . . . 94%
  • Coolant Flush . . . . . . . . . . . . . . . . . 90%
  • Power Steering Flush . . . . . . . . . . . 68%
  • Spark Plugs . . . . . . . . . . . . . . . . . . . 37%
  • Brake Fluid Flush . . . . . . . . . . . . . . 29%

AMSOIL Installer Program

The Installer Kit (G250 U.S., G8250 Can.) provides Dealers the materials needed to demonstrate to installers how AMSOIL can increase profits. It includes enough sales brochures, data bulletins, fair handouts and other items to make five sales presentations and establish two accounts.

Installer Kit (G250 U.S., G8250 Can.)

  • U.S. . . . . . . . . . . . . . . . . . . . . . . . . $8.00
  • Can. . . . . . . . . . . . . . . . . . . . . . . . . $9.65

Author: johnzena

Amsoil dealer in Las Vegas NV. Plus I work as a dice dealer at the Bellagio.

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