Oil waste costs dealers
June 25th, 2010 by Richard Aucock
CAR dealers are wasting the equivalent of £1450 per technician every year through wasting oil.
Castrol Professional has released the shock sum, to highlight the huge amounts car dealers are missing out on.
It is equivalent to 11 percent of total potential oil profits each year, and is occurring because dealers are failing to manage their oil stocks well enough.
It is doubly ironic, says Castrol Professional’s Andrew Bosworth, given the expense of stocking up on oil in the first place.
‘Wastage actually hits a dealer’s pockets twice, once through the buy-in cost of the oil and then again through the missed profit potential.
‘It is therefore alarming that many dealers are either unaware or unconcerned that they are seeing such a significant proportion of their oil lost through wastage.’
How is this waste occurring? Through spilling it, losing it through leakages, mischarging, using it in dealer demo cars, transferring it between departments without recording the movement – and, of course, theft.
Castrol is now working on advice to help dealers reduce this huge loss, following with more than 550 car dealers over the past 3 years.
Details on this, including how best to design, upgrade and refit workshops, will be announced through the rest of 2010.
Tags: aftersales, castrol professional, oil