Maintaining Margins in a Changing Market: Key Takeaways from Oilstop CEO Scott Hempy

In a recent episode of The NOLN Podcast, Oilstop CEO Scott Hempy shared practical advice for one of the biggest challenges facing the quick lube industry today: maintaining profitability as operating costs continue to rise. Rather than focusing on factors outside an operator's control, Hempy emphasized improving efficiency, strengthening team performance, and making thoughtful business decisions. Here are a few of the biggest takeaways from the conversation.

Focus on What You Can Control
Every business faces challenges like inflation, supply chain disruptions, rising labor costs, and fluctuating parts prices. While those factors can't be controlled, how your shop operates can. Hempy encourages operators to look inward first. Small improvements across multiple areas can have a bigger impact than one major change, especially when margins begin to tighten.

Labor Efficiency Beats Labor Cuts
When profits shrink, cutting labor hours may seem like the obvious solution. Hempy recommends a different approach: focus on improving efficiency instead. One of the most effective metrics is bay time. Saving even a few minutes on each vehicle allows shops to service more customers throughout the day without increasing payroll. It's about helping your current team accomplish more while continuing to deliver a great guest experience.

Small Expenses Add Up
Minor operating costs are easy to overlook when business is strong, but they can quietly chip away at profitability. Items like shop towels, oil absorbent pads, cleaning supplies, and other consumables may seem insignificant on their own, but together they can make a noticeable impact. Regularly reviewing these everyday expenses helps reduce unnecessary waste and encourages teams to be more mindful of resources.
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Inventory management is just as important. Keeping commonly used filters and parts in stock helps avoid expensive emergency orders while improving service speed and creating a better experience for guests.

Make Downtime Count
Every shop has slower periods, but downtime doesn't have to mean idle time. Organizing inventory, cleaning service bays, restocking supplies, and completing maintenance tasks all help prepare the shop for the next customer. A clean, organized workspace leads to faster service, fewer mistakes, and a better first impression.
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Hempy also highlighted the value of friendly team competitions. Whether the focus is car count, bay time, or profitability, creating shared goals keeps employees engaged and often builds habits that continue long after the competition ends.

Don't Be Afraid of Thoughtful Price Increases
Pricing is one of the toughest decisions for many operators, but Hempy believes it shouldn't be approached with fear. As operating costs naturally rise over time, periodic and well-planned price adjustments help maintain healthy margins. Rather than waiting years between increases, operators should regularly evaluate their costs, understand their local market, and ensure pricing reflects the value they provide.

The Guest Experience Still Matters Most
At the end of the day, customers may not remember every detail of their oil change, but they'll remember how they were treated. A warm greeting, clear communication, professional service, and a genuine thank you leave a lasting impression. Combined with convenience and operational excellence, those moments are what keep guests coming back.

Final Thoughts
Maintaining healthy margins isn't about making one dramatic change. It's about consistently improving the small details that make a business run more efficiently.

By focusing on labor efficiency, controlling everyday costs, managing inventory, engaging employees, making thoughtful pricing decisions, and delivering an exceptional guest experience, quick lube operators can strengthen profitability even during challenging economic conditions.