The oil change industry in the U.S. boasts revenues of $10.6 billion in 2023.
The profitability of an oil change business depends on profit per sale and overall profitability. The average profit per oil change is 35%. A station averaging 40 oil changes daily, at $70 per customer, sees $2,800 in daily revenue. With a 35% profit margin, daily profit is $980.
Suburban families own more vehicles and will pay for services. Rural markets have fewer customers, some who change their own oil. Mobile oil change businesses don’t need much market share to profit. Volume of customers drawn to efficient, convenient drive-thru service allows higher revenue for franchisees. Exceptional customer experience and added maintenance solutions optimize profitability.
Profitability varies based on location, efficiency, pricing and volume. Cost per oil change ranges $25-$50. 20 changes daily generates $500-$1,000 revenue, approximately $180,000 to $360,000 yearly. Individual oil change franchise profitability depends on marketing and location. Franchises can earn $600,000 yearly, performing 1,200 jobs monthly. As owner, net yearly profit of $75,000 to $80,000 is possible.
The oil change industry should continue growing over the next five years. In 2021, 25,455 U.S. oil change businesses employed 76,363 people. The Middle East holds 48.1% of the global oil market. In 2019, the U.S. saw $8 billion in oil change revenue.
Oil changes represent $1.6 billion yearly revenue for tire dealers, or:
| Dealer Type | Annual Revenue |
|---|---|
| Tire Dealers | $1.6 billion |
| Per Dealer | $60,651 |
Profit margin per job averages 35%. Extra services per customer increase average profit margin.
Starting this venture requires planning and preparation to set up for success. Seek advice from professionals with questions or concerns.