Simple, classic, effective – the oil change coupon is a slick way into your customer’s heart! Oil change coupons can be used in all kinds of coupon advertising – paid social media ads, direct mail postcards, and grocery store receipts. It targets all kinds of car owners, driving new business and encouraging customers to come back time and time again. Find out why the oil change coupon is so powerful for your auto repair shop and how to create a coupon offer that is profitable for your business.
3 Reasons Oil Change Coupons Are So Effective
- Familiarity – Car owners are familiar with what an oil change is and how often they need it done. Comparatively, someone with a coupon for a timing belt would have to Google “what is a timing belt” to understand what it is and when they might need it replaced.
- Frequency – Oil changes need to be done multiple times a year. There is a good chance that the majority of prospects, no matter when you send your coupon out, could use an oil change in the next month or two.
- Flexibility – There are a variety of ways to run an oil change coupon. Dollars off, flat price, combined with other services. Changing the offer on the coupon discount for an oil change is easy. This provides much-needed flexibility to not only attract customers (new and returning alike) but, just as importantly, ensures that you still make a profit for each coupon redeemed.
How to Calculate Coupon Profitability
There is a misconception that all oil change coupons are loss leaders. While some businesses may intentionally take that approach, your auto repair shop can absolutely make a profit using oil change coupons.
A regularly priced $40 oil change with a 35% margin equals $14 in profit for your auto repair shop on each oil change. After giving each customer a discount of $5, your business makes a $9 profit.
If your coupon brings in 1,200 new customers a year, this results in $10,800 dollars in revenue from your advertising campaign. Subtract what you spent on the advertising program, and you’ve calculated your profits!
Keep in mind, this is just the revenue from providing the oil change service. Many customers will spend more than the initial $40. If you find this is the case, you can use the average ticket price at the beginning of the formula to calculate your profitability. Additionally, others will come back throughout the year and spend hundreds of more dollars in repairs. All of that business can be directly traced back to your exciting, enticing, profitable oil change coupon.
Ready to put your coupon in the hands of local shoppers? Contact us today to speak with an IndoorMedia Consultant.
Best Types of Oil Change Coupon Offers
No matter which type of offer you choose, the goal is to make it as easy as possible for your potential customer to use your coupon. Here are a few options to consider when creating your offer.
Simply state the final price of the oil change. This makes weighing options easy for prospective customers because they know exactly how much they’re going to pay. When placed beside another auto repair shop coupon, they can directly compare prices to see where they’ll get the better deal.
This tactic works well for auto repair shops that have a lot of competition in a small area. When you just need to get new customers in the door, a coupon for $10 or $15 off the total price can be extremely enticing.
For example, Turn Too Automotive’s $15 off coupon seems like a greater value that Rapid Lube’s $10 Off coupon, even though the price after the discount could be the exact same.
Options for Conventional and Synthetic
Unless you’re a specialty shop, most auto repair shops serve the general population. If this is the case for you, your oil change coupon should accommodate all kinds of oil changes. This makes your auto repair shop accessible to car owners of all kinds, increasing your chances of bringing in new customers.
Combine With Other Services
If you don’t want to discount your oil change past a certain point, consider adding in a free service. For example, Auto Service Center only gives a $3 discount on their oil change service but includes a free tire rotation. Without the free service included, a $3 discount may not be competitive enough to draw in new customers.
Create Your Own Amazing Oil Change Coupon
Oil change coupons are proven to drive new sales and increase profits for auto repair shops. Their familiarity, frequency, and flexibility create a “perfect storm” for potential customers – who doesn’t want to save some money on their next oil change?!
Once you’ve identified which type of oil change offer is most profitable for your business, you’ll need to figure out the best way to advertise your auto shop coupons.
If you want your oil change coupon handed directly to thousands of local shoppers every day, consider grocery store receipt advertising. It’s proven, profitable, and easy to get started.