10 ways quick lube shops can expand their revenue streams

Gas prices have reached unforeseen heights this year, it’s difficult for people to buy new vehicles because of the chip shortage, and businesses are still recovering from the shutdowns during the early days of the COVID-19 pandemic. For quick lube business owners, these stressors may be straining their businesses and affecting their revenue streams. Your customers may not drive as much as they once were, or their vehicles are aging and require specialized care. So how can you increase your profits with all these obstacles in your way? By expanding.

Businesses that are willing to take risks and expand their offerings to customers now have the potential to increase their revenue streams and bring in more customers. As a result, there is a lot of opportunity for quick-lube business owners who are willing to think outside the box and try new things. But how exactly can you expand your business? Here are ten ways to grow your offerings to customers and your revenue stream.

  1. Expand your maintenance services: People are busier than ever and are looking for a fast, one-stop-shop service for their vehicles. Diversifying what maintenance tasks you offer customers is a great way to incentivize people to spend more money in your shop. Adding regular maintenance menu items like brake pad changes, tire service, transmission service, windshield repair, and other tasks may help increase your profits.
  2. Expand your oil and lubricant lineup: The chip shortage is leading to fewer new vehicles on the road and customers driving their cars for longer than before. Many customers now drive their vehicles for twelve years or more. Your shop may benefit from keeping a diverse selection of synthetic and specialized lubricants on hand to service older vehicle needs. You could even expand your lubricant offerings to target vintage car owners too!
  3. Create a mobile-friendly website: In an interview with NOLN, Jiffy Lube president Edward Hymes shared that their mobile app significantly helped the company weather the downturn caused by COVID-19. The company was able to keep 97% of its locations open, and Hymes credits the development of its mobile app for allowing them to improve its customer experience. As Hymes says, “To be successful, we’re going to have to enable that virtual experience for our customers, providing what they want, when they want it, and how they want it.” Take a cue from Jiffy Lube’s experience and embrace a mobile-friendly website that allows you to reach out to your customer base, share promotions or send maintenance reminders. The more present you are in your customers’ digital lives, the more likely they will turn to you when their vehicle needs service.
  4. Embrace social media: If developing a website or app is out of your realm or expertise, turn to social media. It’s easy to manage, and with consistent updates, you can promote your shop and the customer experience and service you offer. Combine your social media presence with a mobile-friendly website, and your customers will have multiple digital routes to stay in contact with your business.
  5. Open a second location or complimentary business on site: Another way to increase your revenue stream is to open a second location or a complementary business on site. A second location will allow you to expand your revenue in a different market. A complementary onsite business like a car wash or detailing shop would let you offer additional services in the same location without renting or leasing extra space. You can also utilize your workforce in both businesses!
  6. Create a concierge service: The most significant appeal of quick lube businesses for customers is that they are fast and convenient. You pull up, get your oil change while reading the paper, and then drive off in a few minutes. Imagine how much easier it would be for your customers if they didn’t even have to come to the shop for service! You could outfit a van or truck with the needed supplies and offer a concierge service for your customers that goes to your customers. Specialty treatment like this will allow you to charge higher fees and inspire brand loyalty.
  7. Extend your hours: It sounds simple but extending your hours may be a great way to bring in more customers. Not everyone works the 9-5, and some customers might appreciate services in the evenings or on the weekends.
  8. Offer maintenance packages and loyalty programs: Everyone loves getting a deal. It’s why we clip coupons and shop around for deals. However, with higher prices, your customers are looking for long-term savings, like the kind you get from a membership incentive or loyalty program. Creating a program that offers a long-term discount is a great way to increase repeat business and brand loyalty and may work better than one-time savings promotions or discounts.
  9. Offer car rental services: If you have extra vehicles, now is the time to start renting them out to customers! The car rental shortage is making it increasingly difficult to book vehicles for travel or in the event of repair service. There are plenty of ways you can offer rental services, from setting up a rental shop to utilizing car sharing services, and with rental prices at record highs, you can stand to make some good money!
  10. Focus on improving the customer experience: The best way to expand your quick lube business is by focusing on improving the customer experience. The happier your customers are, the more likely they will be to come back and refer their friends and family. If you are looking for great ways to improve your customer experience, check out one of our previous blog posts full of 10 great ideas for better service!
  11. As a Chevron lubricants supplier and a Valvoline lubricants supplier, we work with many quick lube businesses, so we know the struggles you are facing today. Our role is to make things a little bit easier by offering fast and easy lubricant and fuel supply ordering. That’s why we offer a full lineup of shop and automotive supplies so your business can stay stocked up! Contact your Greg’s Petroleum Supply Representative today if you have questions about your order or need recommendations for lubricant supplies.