Introduction
As an auto service shop owner, you already understand the importance of providing consistent and efficient services to your customers. In our last blog post, we delved into a comprehensive five-step oil change process that can not only enhance productivity but also significantly increase sales. But let’s move past the actual process of changing the oil. Today, let’s focus on how to leverage your oil change services to elevate your shop’s average invoice collection, which often gets overlooked amid the hustle and bustle of daily operations.
Unraveling the True Worth of an Oil Change
The truth is, the value of an oil change service goes beyond the mere price you charge your customers. It’s about cultivating repeat business, upselling, and, most importantly, building long-term relationships with your clientele. A discounted oil change can act as the hook that brings the fish to the bait, paving the way for more lucrative services.
A Real-World Example
I vividly remember a personal encounter I had with a store owner during my tenure as the Regional Director of Stores for Big O. I was visiting a store in Grants Pass, Oregon, and the owner was seeking advice on how to boost his business. His store was in a prime location, with a huge sign out front and cars streaming past every hour. To me, the potential seemed vast and untapped. I asked him why he didn’t advertise a low-cost oil change option to attract more customers. His response took me by surprise. “Why would I do that?” he asked. “I work hard enough as it is.”
This shop owner was so engrossed in his day-to-day duties that he lost sight of the bigger picture. He was charging $60 for an oil change, but he had no idea what his average invoice looked like when customers came in for that service. After reviewing his work order history, we discovered that customers coming in for an oil change ended up spending an average of $514 per visit. This revelation was an eye-opener. The owner immediately added a $29.99 oil change special to the sign in front of his store.
Shifting Perspectives
This story serves as a stark reminder that we need to shift our perspective from the price we charge for an oil change to the total invoice value per customer visit. It’s about seeing the oil change service as a loss leader—a strategic move to get customers through the door. Once they’re in, the quality of your service and your team’s expertise can work to upsell additional, more profitable services.
Conclusion
Remember, the main objective here is to attract new customers and build long-lasting relationships with them. The discounted oil change is merely the incentive that pulls them into your store. Once they’re in, the five-step oil change process we discussed previously will help ensure an efficient service and customer satisfaction, paving the way for future sales and repeat business.
So, are you ready to rev up your business by focusing on the average oil change invoice collection rather than just the oil change price? It’s time to leverage your service into profits!
As Always, Good Selling!
Pat
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