As I drive by a local quick oil change business, I notice two people standing on the roadside holding up signs that read “no wait, $5.00 off”.  At first I think to myself what a great idea.  If they have no customers, they stand out road encouraging customers by offering “no wait” and a $5.00 discount. Over the next few weeks, I begin to notice these guys more and more. I wonder if they have always been thereor I just didn’t notice before. In the end, I realize that the oil change business has changed ownership recently and the road waving must be a new strategy brought in by the new management.

Let me say, I know next to nothing about the quick oil change business.

I do find this concept interesting as on the surface, it appears to accomplish the immediate goal of filling an empty bay. After seeing these guys out on the road for several weeks, I quickly realize that if I should ever decide to get my oil changed, I should wait until I see them out on the road. For in my mind the sign actually says,  “no wait $5.00 off unless we have a car in the bay already at which point you should wait until no one is here again”.

This seems to me to be a classic example of short term gain, at the expense of long term gain.  Put another way, being on sale is only special until it becomes regular price.

I have not asked this oil change place anything in regard to this. I admit that I am unaware of the nuances of the business model. Perhaps their regular price already has $5.00 worth of coupon room built into already. The $5.00 off could be “not valid with other offers”.  If it occurs that a high percentage of oil change customers use coupons then perhaps this offer is not so bad to the long term business after all.

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