The 10 minute oil change: Are quick stop oil change franchises stealing business from independent repair shops?
"I don't see it as a problem," says Randy Pickering, the owner of Pickering Auto Service Center in Lakewood, Colo. "They [the oil change franchises] have a certain market that seems to work for them, so I don't see it as a problem in my area [of the country], no."
Pickering doesn't view the owners of these franchises as his competitors; instead, he looks to them as his colleagues. In fact, he has a "gentleman's agreement" with the six shops in his areas, where they refer business to him if one of their technicians comes across a problem they just can't fix.
And that works out well for Pickering, who can win new business, and for consumers, who will then get their vehicles serviced correctly by one of Pickering's ASE-certified technicians.
"The truth of the matter is, the independents just can't handle all the oil changes," Pickering adds. "There are just too many cars out there. Short of us trying to become an internal quick lube shop, we can't compete. Frankly, if we tried to step that side of the business up, we could certainly get more oil changes. But that's not the type of business we're looking for. All we'd be doing at that point is oil changes, oil changes and more oil changes."
For Pickering, the oil change franchises have a place in the industry, and "do an okay job at what they do."
But for other repair shop owners, these quick service locations present an enormous threat to their repair and maintenance businesses.
"It's a problem in every area of the country," says Chris Lechman, owner of the Denver, Colo. Tapps Garage. "There's more to an oil change than putting a new filter in," he adds.
Leave it to the pros
According to Lechman, the price of an oil change at his shop compares favorably to that of an oil change at the local Jiffy Lube or Grease Monkey. But an oil change at Tapps Garage includes premium oil and oil filters, as well as a courtesy inspection of a vehicle's belts, hoses, brake pads, tires and suspension — which can save drivers money in the long run.
"The biggest advantage to having your oil changed in our shop is that you're going to have a set of ASE eyes looking at your vehicle every time it comes in," says Lechman. "If your car has a radiator hose that is swelling or cracked, an experienced technician is going to find that and fix the problem before it becomes serious and results in a breakdown."
Lechman also stresses customer service, saying that his shop offers free shuttle service and a car wash along with every oil change. But you can't get that for $19.95, nor will a qualified technician work on a car if that's all he's going to make.
"You don't want to take a trained technician off of a more difficult job to do an oil change," says Rick Hughlett, owner of Rick's Automotive Inc. in Springfield, Mo.
That's why Hughlett has dedicated one by of his shop exclusively to oil changes, and has a junior technician who performs only oil changes with the help of a lube technician.
Hughlett agrees that a trained technician will often spot a problem that a less experienced technician will miss. But he refuses to place the blame on oil change franchises in general; instead, he encourages people to think about the individual shops and what they do to educate their technicians.
"You can't drop them all in one bucket," he says. "If you say 'Jiffy Lube,' you're talking about a company. But not all Jiffy Lubes are bad. In fact, I'd rather see my customers have their oil changed at a quick stop than to not have their oil changed at all."
Earning customer loyalty
So, what drives customers away from the independent repair shops and into the bays of an oil change franchise? Simple, says Hughlett. "Instant gratification. Most independent shops can't stop what they're doing to do an oil change for a customer while he or she waits. People want it done, and they want it done now."
To compete with the franchises in his area, Hughlett is expanding his shop and opening six to eight more bays to handle the demand for quick services such as oil changes and fluid flushes. He'll also add more technicians to the mix, keeping certain ones for more difficult services and relegating the more junior ones to the quick service bays.
But not every shop can afford to keep one bay open exclusively for oil changes. What can those shops do to earn their customers' business? "You sort of have to say to customers, in a tactful way, that 'you get what you pay for,'" says Lechman. "Go above and beyond on the service to drive customer loyalty and keep your customers coming back to you for regular service."
Lechman is also starting a special lifetime oil change program for his customers. The program costs $239.95 to join, but all oil changes are covered for as long as a customer owns his or her car. People who join up will get basic oil changes for no charge, both minor and major services for a discounted price and will receive special deals and discounts through the mail once a quarter.
"We hope this will prevent folks from going from one shop to another and will give us the opportunity to see our customers' cars and keep them maintained and on the road."
And in the end, keeping the cars well maintained and running is what it's all about.
"I think there's room for both of us [in this industry]," says Pickering. "We're all greedy to the point of saying that we want all of the business in our own shops, but I really think there's enough business to go around."