Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. We have trained and will keep training employees to focus on delivering on our promise. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. Knowing your peer companies will also help you assess your market share and growth potential. This does come at a cost though. Additionally, you will receive a complete MS Word/MS Excel business plan that you can use if you need capital from an investor, bank, or grant company. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Another common method attributes value to a business based solely on its assets. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. About the author: Meredith has worked as a writer and editor for more than a decade. There are many things that go into running a quick lube business, but there are three key items you should focus on if you want to retain customers. Here is a list of our partners and here's how we make money. Another 22% of operators combine automotive repair with quick lube services. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. If you are contemplating a transaction in the auto service sector I can The service requires full cookie support in order to view this website. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. Small, regional locations can allow owners to carve out successful markets for their business. Maintaining the website with new trends and advises. Disclaimer: NerdWallet strives to keep its information accurate and up to date. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. It's called Jiffy Lube Multicare. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. We have tapped into real estate where our competitors cannot go. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. He will be charged with overseeing the sales and marketing of Easy On Oil. You'll need a minimum of $50,000 cash as a startup fee. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! Protect your EATS system with Delo 600 ADF. The service requires full JavaScript support in order to view this website. Entrepreneurs looking to buy an existing business should also be familiar with valuations, and feel comfortable estimating value independently of the business owner or brokers asking price. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. The profitability of individual companies depends on convenient location and good marketing. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. So how do we make money? Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil Change SM, and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. The average price for a multi-point oil change within the quick lube industry is $36.82. To make sure you maximize your payout when selling your business, it's important to work with an experienced business valuation provider such as Guidant. Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. We plan to give our clients a few business cards to hand out to friends when they talk about our quick lube services or buying new parts. Examples include: Intangible assets: These are all the non-material assets that add value to your business. The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. Then, you can demonstrate to potential buyers what makes your business stand out. Temple Curtis represents sales/management, Helen will focus on the finance/administration section of the business and Aaron will focus on the mechanical aspect of the business. No matter what, applications must be filled out and fees paid. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. Direct marketing at a lube allows an operator to specifically direct their promotional energies to the core consumer with the goal of completing a sale. However, youre fully capable of valuing your business using your own resources. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. (Thats why this number is subtracted from the SDE in valuation calculations.) In charge of creating marketing and sales strategies, etc. Before even thinking about how to value a small business for sale, both sellers and buyers should organize their financial records thats crucial for accurate calculations. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! However, to keep capital investments low and offer quick building relocation, vehicle lifts can be used rather than basements. Victory Lane Quick Oil Change. So, most maintenance on electric cars will be more software driven. The appeal of a quick lube business is easy to see. to post every listing on the site. One common method used to value small businesses is based on seller's discretionary earnings (SDE). Succeeding in business is never easy theres a reason why most small businesses never make it past three years but if you do it right, success wont be far away. Over the past decade, improved technology and extraction techniques enabled industry . To start off, there are two major types of electric cars that are on the roads today. So, established businesses with stable profitability often use this valuation approach. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. This influences which products we write about and where and how the product appears on a page. Why do diesel exhaust fluid (DEF) prices keep rising and falling? We will give a guarantee on all our repairs for a certain amount of miles or time. Operating expenses and labor are the two largest costs facing the quick lube industry. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. www.ratchetandwrench.com is using a security service for protection against online attacks. Some of them also have electronic work order systems available amongst their various service centres. There are two asset categories, and theyre weighted differently when calculating a businesss total value: Tangible assets: When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. If you plan to open an oil change business, you should investigate any quick lube business within your vicinity and determine how they may impact the viability of your investment. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. To reach our local customer base, we will employ a marketing manager. Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. As revenues have increased, however, net profits have decreased by 2.3%. In 2018, the industry was valued at $7 billion in the U.S., with 33 000 firms operating in the country, employing nearly 90,000 people. Do not sell or share my personal information. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Does becoming a quick lube business owner sound good to you? We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. Order Reprints. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. (Car Wash Magazine), #10. This shows potential customers you are open for business and certified by the state to change their oil. Another 16% of business owners have two locations where they provide services. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. Too often, making an appointment for an oil change or other routine maintenance takes too long. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. So, most hybrid-electric cars do not ever run on electricity alone. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. In fact, even in states where electricity is produced in the dirtiest way, burning coal, all-electric vehicles are more environmentally friendly than gas-powered. 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