SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . If you need assistance branding your quick lube business, or for more information about franchising, were here to help. In particular, the Adjusted Net Asset Method calculates the difference between a business's assets including equipment, property, and inventory, and intangible assetsand its liabilities, both of which are adjusted to their fair market values. 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. The quick lube business may thrive on customer turnover, but quality, efficient service is what brings customers back to their favorite quick lube shops again and again. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. The average price for a multi-point oil change within the quick lube industry is $36.82. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. The appeal of a quick lube business is easy to see. Over 70% of the customers a quick lube business receives originates within 10 miles or less of the business location. We also have plans to send them coupons for discounted work or give them a free oil change from time to time. As we mentioned earlier, a businesss SDE multiple and the method of valuation varies according to a few factors, including the strength of the industry. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. With Easy On Oil as a technologically savvy business with computerized monitoring of all automotive lubricant and repair parts inventory, we plan to make sure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. Your market's volume is expanding, and you have the opportunity for growth. If buying and selling businesses is a new frontier for you, you can consult any number of online resources to help you determine the value of a business. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. This influences which products we write about and where and how the product appears on a page. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. Operating expenses and labor are the two largest costs facing the quick lube industry. A valuation is a suggestion of value, but your business model shows potential buyers how theyll actually reach their customer base to generate revenue if they purchase your company. When the economy is weak, vehicle owners tend to complete these services on their own, to the best of their ability. The work done here is every bit as good or better than the nationals, the price seems at least a bit better, and I had a better experience overall. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Paul Hodowanic. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. Over the past decade, improved technology and extraction techniques enabled industry . Regardless of the option you pursue, get the word out with our help. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change Victory Lane Quick Oil Change. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. NerdWallet strives to keep its information accurate and up to date. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. (Business Wire), #13. Although there will still be many different tasks to complete with your hands, we will grow and advance with this trend by employing the services of a software engineer in due time. Implement an ongoing training program. Job Roles and Responsibilities 6. In fact, most quick lube operators choose to franchise for this reason. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. (Buyers might ask about your discretionary cash flow when you offer them your valuation, so be prepared to include and value each major expense or purchase.). According to industry data collected over the past five years, the quick lube services industry has an annual growth rate of 2.4% and a combined annual revenue of $5.5 billion. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. If you ever want to learn . KEYWORDS oil change Operations Quick Lube. All financial products, shopping products and services are presented without warranty. As you can deduce from its name, the market approach to valuing a business determines a companys value based on the purchases and sales of comparable companies within the same industry. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Printing of Packaging and Promotional Materials: Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. If youre interested in learning more about the automotive business buying process and how our expert When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. Additionally, franchising a business comes with an entirely different set of understandings and obligations. People are graciously buying cars and comfort. More on liabilities in a bit. The most popular has been around for a while, hybrid-electric cars. Even though quick lube locations are seeing a reduction in the number of cars being serviced each day, the number of oil changes being performed is rising. But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Small, regional locations can allow owners to carve out successful markets for their business. into the automotive business. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. 3. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. About Your Results Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. (Statista), #21. (IBIS World), #2. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. This segment comprises approximately 25% of our revenue at Easy On Oil. effective manner and I never once felt like I was in the dark. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. Please enable JavaScript on your browser and try again. Why do diesel exhaust fluid (DEF) prices keep rising and falling? All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. Just 9% of customers come from a 2-mile radius. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. Quick Lube operating income is up to $162 million TTM . But as a seller, you have to put some number on your operation, especially if you want to be compensated for what you've built, taking into account all kinds of equity. (Digital Dealer), #17. But buyers arent exempt from this step in the process! It can be an especially useful approach for rapidly growing businesses and industries. When evaluating offers, please review the financial institutions Terms and Conditions. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. However, this does not influence our evaluations. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. Our goal is to capture a majority of the market in little or no time. In the United States, about 450 million oil changes are performed each year. Our Mission and Vision Statement 5. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. Particularly if this is your first company, or if you run a family-owned and operated business, take care to approach valuation as objectively as possible to come to an accurate number. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. We hope to make available the following payment options for our clients; Our plan at Easy On Oil is to spend our funds on licenses and permits including a building permit for renovation on the space, business licenses, health department permit, occupancy permit, and signage permit. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. The Oil Change Services in the US industry consists of Conventional oil changes, semi-synthetic oil changes, full synthetic oil changes, automotive oil changes, car washing and cleaning services, other maintenance services and high-mileage oil changes. vendors, insurance agents, and others. brokers, but I have to say that I have not worked with a more professional and diligent Often, sellers keep their business liabilities and pay off their debt after their business is sold. Here, business assets include anything that adds value to your company. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Maintaining the website with new trends and advises. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. We all know this chore requires ones hands to get dirty, and for this reason alone, many car owners are perfectly okay paying a quick lube business to do the job for them. (Business Wire), #14. His expertise in getting deals done is Together with our team, these experts will help ensure you get the best This company offers true quick oil change and a new filter. We believe everyone should be able to make financial decisions with confidence. Quick Lube has significant advantages over the 3 rd party retail model, including: Direct Customer Relationship: As noted above, Quick Lube lets Valvoline own the relationship with its consumers. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. Buyers obviously won't need all of these documents, but they should still review their own financials. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. 8 Stalls & Pits! 89% of quick lube locations offer a transmission fluid drain and flush service in the United States, with an average cost of $107.60 per service. 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Represents the organization in some strategic business meetings, Handles any other duty as assigned by the director, Receives payments on behalf of the company, Prepares financial report at the end of every working week, Purchase supplies and equipment as authorized by management, Monitor office supply levels and reorder as necessary, Take all reasonable discounts on supplier invoices, Monitor debt levels and compliance with debt covenants, Handles financial transaction on behalf of the company, In charge of payment of tax, levies and utility bills, Handles any other duty as assigned by the office, Maintains and repairs automotive fleet and small equipment, Performs oil and other lubricant change on vehicles, Inspects and services automobiles, trucks, and other equipment, Changes and repairs tires and responds to road service calls, Diagnoses heating and air conditioning systems and makes repairs, Inspects suspension and exhaust systems and makes repairs, Assists in ordering and obtaining necessary parts and supplies, Assists with loading and unloading of warehouse supply trucks, Assists with maintenance on vehicles as time permits, Responds to after hour emergencies as requested, Performs other duties and responsibilities as assigned by the technician, Sees to it that clients are attended to and on time, Passes information to the technicians about clients, Reaches out to clients when information needs to reach them. In order to see how electric cars are impacting the future of the automotive repair industry, it is important to understand how they work in the first place. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. Ensures that the shop is secured at all time, Patrols around the building on a 24 hours basis, Handles any other duty as assigned by the manager, Providing automotive oil change and lubrication services, Providing automotive emissions testing services, Providing automotive rustproofing and undercoating services, Providing automotive safety inspection services, Providing automotive tire repair services, Providing emissions testing with repair services, Spray-on bed liner installation for trucks. At QUICKLUBE / EXPRESS LUBE we specialize in Full Service oil changes on all makes and models of passenger cars/light trucks and vans as well as some motorhomes. person. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. For that reason, projections of growth for the industry are as low as 0.7% within the forecast period in some markets. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? LOCATION, LOCATION, LOCATION. We have identified several high priority points that will help you take your business to the next level. (Car Wash Magazine), #7. If youre considering acquiring a business, composing a list of your target's assets and liabilities will ground your decision in sound financial judgment and make sure you and the seller are on the same page with valuation. This is another opportunity to seek the counsel of a mentor or a professional advisor, who can provide insight into your businesss assets from a more objective perspective. Most locations achieve this figure with just 2-5 service bays available to them. It can gather data to . explaining everything in detail. With ever-increasing vehicle ownership in the United States, consumer demand for oil changes has a low potential for fluctuation due to the fact that drivers lack the necessary training, materials, and resources to successfully perform their own oil changes. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. 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Expenses and labor are the two largest costs facing the quick lube business together!
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