March 1, 2019
Oil: Your key to a smoother, more profitable business
Oil Programme Manager, Ross Morgan, explains why oil is key to customer satisfaction and improved margins.
Older readers will remember a time when a barrel of 10 W-40 was pretty much all that was needed when it came to oil, but this ‘one oil fits all’ approach no longer works.
Lubricant specifications are becoming ever more exacting to satisfy manufacturers’ requirements to ensure their engine performance levels and warranty protection are maintained. As manufacturers strive to find the perfect balance between engine performance, reliability and efficiency, maintaining the correct grade at service time is vital.
For garages, this means two things.
Firstly, there’s a responsibility to know which oil is right for a specific vehicle. Secondly, there’s a need to hold a greater number of manufacturer-approved oils in stock.
The first is easily solved via VRN lookup tools now available online at tps.trade/strength-to-strength. This will advise which product to use simply from the registration number. The second is best achieved by choosing a range with the widest car parc coverage and pack options that allow you to stock up according to your customer profile – bulk for commonly used specifications and bottles or CUBEs for those less frequently required.
The new extended range of Quantum engine oil offers all of this – plus the reassurance that only comes from a product with full manufacturer approval.
OIL MARGIN TOP TIPS
- It pays to think of oil as more than a commodity – it can be the key to better margins.
- The most straightforward method is to sell customers the correct top-up oil pack after every service.
- Encourage customers to check their oil levels regularly.
- Let customers know a 1 litre pack will be more economical for them in the long run (and a quick win for you).
- Make sure you’re pricing at the right point for your local market. It’s surprising how many garages are underselling themselves when it comes to oil, charging below their competitors for a comparable product. Identifying this and addressing any deficit is a fair and simple way of protecting your profits.
Ross Morgan, Oil Programme Manager for Volkswagen Group UK.