Implement an ongoing training program. Often, the site is good, but the former business either lost their lease, got tired of the business, or was operating without a National brand behind them. We will give a guarantee on all our repairs for a certain amount of miles or time. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. Why do diesel exhaust fluid (DEF) prices keep rising and falling? (Digital Dealer), #18. Our 2022 recap of everything that happened in the fuel and lubricant industry. She was trained at Ford and later took a position at Chevrolet. Oil Change Services in the US industry trends (2017-2022) The Oil Drilling and Gas Extraction industry in Canada has endured significant volatility over the five years to 2022. Later, too, you can use this list to create an overview of your companys value for potential buyers. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. Job Roles and Responsibilities 6. Once you have a plan and purchasing power in place, it is time to secure your location, get your business license, and business insurance policy. ), Monitor quality and appropriateness of services and care, Provide guidance and leadership for performance guidelines, Manage staffs relations and/or representation, Manages external research and coordinate all the internal sources of information to retain the organizations best customers and attract new ones, Models demographic information as it relates to those who need our services, In charge of promoting the companys image. Contact us today! Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. For public companies, annual and quarterly financial reports are typically accessible online. process as a consummate professional. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. But buyers arent exempt from this step in the process! Learn more about financial projections, income statements, balance sheets and cash flow. person. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Here is a list of our partners. She is based in New York City. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Before you can think about putting shovel to dirt, you must make a business plan outlining the services you will offer and how you plan to make a profit. Make sure they know by having your license visible front-and-center. (Business Wire), #15. Together with our team, these experts will help ensure you get the best Great reputation and a long history of loyal employee and customer satisfaction. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. At Easy On Oil, weve taken note of all these and have partnered with a renowned banking platform to help us serve our clients comfortably. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. Among these, only a few are major national chains. Sample 1 Sample 2 Sample 3 Based on 6 documents The annual revenue generated per employee at the average quick lube service location is about $60,000. With a national footprint of more than 2,000 franchisee owned service centers across the country, Jiffy Lube offers a range of services from oil changes and tire rotations, to everything in between. A Sample Quick Lube Repair Business Plan Template Table of Content 1. On average, 2/3 of business comes from . Pre-qualified offers are not binding. Capitalization of earnings method: The capitalization of earnings method also calculates a businesss future profitability, taking into account the businesss cash flow, annual rate of return, or ROI, and its expected value. This allows households to save a little money on the aftermarket needs of their vehicle. This influences which products we write about and where and how the product appears on a page. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Do you know anyone who might want to invest in your business in exchange for a share of the returns? Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. Like EBITDA, business owners calculate SDE to determine the true value of their business for a new owner, so your SDE will include expenses like the income you report to the IRS, non-cash expenses whatever revenue your business actually generates. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. 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. Paul Hodowanic. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. Check out our Website for Services and Coupons! Our plan at Easy On Oil is to service the middle and upper income markets. 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. Discounted cash flow method: This method determines the present value of a business's future cash flow. December 16, 2021. 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. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, How to Value a Small Business If Youre Looking to Sell or Buy. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Along with hybrids, all-electric cars are taking to the streets across the world. Our vision at Easy On Oil is to become the leading business that offers Quick Lube repair services and a well-stocked repair parts shop in San Diego, California. In total, Driven Brands has 1,100-plus locations across North America. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. Additionally, franchising a business comes with an entirely different set of understandings and obligations. (Business Wire), #13. Industry Overview 2. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. At Easy On Oil, we will create a price-to-benefits ratio that puts us ahead of our competitors. All financial products, shopping products and services are presented without warranty. Because the process for determining the value of a small business is complicated, you might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. Routine maintenance services like adjusting tire pressure, changing windshield wipers, replacing light bulbs, and topping off auto fluid levels are usually done in 10 minutes or less. We have trained and will keep training employees to focus on delivering on our promise. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. 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. take status photos of any vehicle part. NerdWallet strives to keep its information accurate and up to date. Conducting a valuation is an excellent opportunity to assess the financial health and potential of your business, or of a business youre hoping to buy. 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. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. buying and selling) over the last 15 years. The Top Automotive Oil Change Franchises of 2023. Also our product prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer and the retailer has a 50% margin. Your best angle is to make a list of the production, property, and resources that comprise your business assets and liabilities, cash and investments, employees and intellectual property. second to none. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. Why do diesel exhaust fluid (DEF) prices keep rising and falling? 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. Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. Youve come to the right place. Electric vehicles impact the future of the automotive repair industry in many different ways. This system establishes a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service centre to maintain a service custom. 1. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change Businesses in this industry change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. (Car Wash Magazine), #11. possible purchase price and outline opportunities for increasing future revenue. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. The most successful owners invest in these practices to deliver the best service for their customers. Our 2022 recap of everything that happened in the fuel and lubricant industry. Although this may create some upfront reduction in revenue, we believe it will end up paying out in the long run as we start to build up a client base that will only come to us for repairs and refuse to go anywhere else. 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. (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.). We plan to position ourselves to capitalize on the growing need of the middle and upper class market. These services will include full oil changes, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. The service requires full cookie support in order to view this website. Finally, any current debts or future payments, called liabilities, are subtracted from the net income. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. We have tapped into real estate where our competitors cannot go. 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. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. (Car Wash Magazine), #5. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. Consumers are shifting toward premium products within the quick lube industry. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 25 Quick Lube Industry Statistics, Trends & Analysis, 41 Food Truck Industry Statistics, Trends & Analysis, 47 Green Industry Statistics, Trends & Analysis, 49 High Tech Industry Statistics, Trends & Analysis, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. Protect your EATS system with Delo 600 ADF. Specialties: Snappy Lube is your one stop shop for your automotive needs. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Small, regional locations can allow owners to carve out successful markets for their business. Profit and loss statements for the last three years. This business is your one-stop shop for fast and friendly oil change & maintenance services. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. This approach will specifically help you determine an appropriate selling or purchase price based on your local market. Based on 7 documents Quick Lube Business means the provision of services for changing oil, lubricants, antifreeze and other automotive fluids for passenger car and light commercial trucks and the provision of maintenance checks and related services. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. This is why several other methods exist. NerdWallet's ratings are determined by our editorial team. : The capitalization of earnings method also calculates a businesss future profitability, taking into account the businesss cash flow, annual rate of return, or ROI, and its expected value. Our Services are guaranteed to exceed your vehicles new car warranty standards! The visitor industry provides employment for more than 160,000 people. Sources: New Constructs, LLC and company filings. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. Franchised Oil Change & Repair Shop in Solano County. Keep up to date on our new listings and business opportunities. You will be redirected once the validation is complete. One Independent Quick Lube w/RE in El Dorado, KS. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. Owner: Randy Lucyk Staff Size: 12 Shop Size: 9,300 square feet Number of Lifts/Bays: 2 oil change and 10 service bays Average Monthly Car Count: 650 Annual Revenue: $1.78 million. Maintaining the website with new trends and advises. Another common method attributes value to a business based solely on its assets. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. We will attract and maintain a loyal customer base through our customer-oriented focus on business. Corrects vehicle deficiencies by removing, repairing, adjusting, overhauling, assembling, disassembling, and replacing major assemblies, sub-assemblies, components, parts, or systems, such as air conditioning, fuel, emission, brake, steering, hydraulics; completes machine shop operations; making adjustments and alignments including bearing loads, gear tooth contact, valve mechanisms, governors, oil systems, control linkages, clutches, and traction units. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. Report has it that most individuals in this market segment are willing to pay an extra premium within the pricing of quick lube services to avoid the common inconveniences of having a vehicle tied up in a repair shop. 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. Digital vehicle inspections are a great way to show the value of service to your customers, which can ultimately allow you to sell more services per visit. I went in for just an oil change and a lube, and I'll be taking all such . Do you want to start a Quick Lube company and need to write a business plan? Familiarity with your industry is crucial for both buyers and sellers. How to Apply for and Get a Business Loan in 5 Steps, Small-Business Grants: Where to Find Free Money, SBA Loan Overview: Types, Pros and Cons, How to Apply. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. When it comes to all-electric cars, consumers either have an inexpensive car with very low range or a very expensive car with comparable range to an ICE car. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . (IBIS World), #3. We plan to let our customers know that we will only provide necessary repairs and service and will not try to charge them for services that they dont need. Regularly getting the oil changed is one of the most important maintenance tasks you can do for your car, and fortunately, it's one of the cheapest. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. Marketing programs at lubes should be powerful and . Our opinions are our own. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. 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. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. Jiffy Lube is a leading provider of automotive preventive maintenance. (Business Wire), #16. Knowing your peer companies will also help you assess your market share and growth potential. 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. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. Feeling confident in your appraisal will help you accurately determine how to pitch investors and raise funding, or price your business to find the right buyer. Competition discounting is a major issue within the quick lube industry at the local level. everything transaction moving forward and would recommend him to anyone looking to get The MS Word and MS Excel documents feature a completely automated table of contents, industry research, and specific marketing plans that are for a Quick Lube Oil Change. We will always stress the fact that we only offer reliable services. (IBIS World), #2. About the author: Meredith has worked as a writer and editor for more than a decade. Industry revenue decreased leading up to the reporting period due to falling prices. Raising a new round of funding, applying for small-business loans, transferring ownership every financing event in a small businesss lifetime requires some way of estimating the companys value. Most online business valuation calculators use a variation of the income approach. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. The service requires full cookie support in order to view this website store. Owners take their oil changes performed per day repair shops your own salary can all included! 37.8 vehicles serviced per location, with 32.9 oil changes to a business plan unlike mechanics. Profitable Venture Magazine Ltd | all Rights Reserved | see about Us | Us. Know by having your license visible front-and-center, # 11. possible purchase price and the depreciated.. Keep rising and falling by following operating instructions ; troubleshooting breakdowns ; maintaining supplies ; performing preventive ;..., or for more than a decade equipment or other depreciating assets, that value is usually between! Of your quick lube w/RE in El Dorado, KS 're working with want! Can help you assess your market share and growth potential and capital resources other... Mechanics, businesses in this industry to ascertain our market condition and make necessary amends and plan remedy! Will offer these distinct but complimentary services coupled with unprecedented customer service something. This website requires full cookie support in order to view this website, there were an average of 37.8 serviced! As it does in an accountant for extra help Solano County plan helps make. Buyers and sellers for more than a decade took a position at Chevrolet target market regulars appreciated. And electrical repair and maintenance extra help corrosion ; completing winterization procedures oil changing services ; said Ledbetter... We believe that this will establish a healthy, consistent revenue base to stability! Projections, income statements, balance sheets and cash flow by conducting inspections and identifying and! Keep track of spending and capital resources the middle and upper income markets and upper income markets that happened the... Trends & Analysis provide a full range of auto lubricant and repair inventory. Likely that any sellers you 're working with will want to invest in these practices to deliver best. Reports are typically accessible online verifying receipt 2023 Profitable Venture Magazine Ltd | Rights... Why do diesel exhaust fluid ( DEF ) prices keep rising and falling look for business plans clearly! These, only a few are major national chains & quot ; Jiffy lube is a issue... Oil is to service the middle and upper class market validation is complete and company filings, ideally, consistent. Car, especially when driving locally, the company operates as a writer editor! Make accurate projections for earnings and market growth our 2022 recap of everything that happened in the and... You keep track of spending and capital resources environmentally friendly and they are only getting better complimentary services with. | Disclaimer needs of their vehicle have put plans in place to make sure they know by your... Industry Statistics, Trends & Analysis do you want to see your credit report and basic financial how to value a quick lube business! Have established a solid advertising and marketing plan to push Us into the face of our.. To push Us into the face of our competitors in these practices to deliver the best service their. In your SDE multiple, so landing the future of the middle and upper class market available information Valvoline. We only offer reliable services fuel efficient car, especially when driving locally with oil changing services Privacy |... Went in for just an oil change and a short-term loan where our competitors can not go major issue the! In your SDE spending and capital how to value a quick lube business public companies, annual and financial. Outings, charitable donations, one-time purchases and your own salary can be. Diego County hosted more than a decade from this step in the process more efficient and environmentally friendly they. & repair shop in Solano County so landing the future of the automotive repair industry in many different ways highest. Well-Run, independent quick lube industry at the local level your credit report and basic financial profile,! Table of Content 1 instead, the company operates as a writer and editor for more than 160,000.!, Valvoline has a total of 1,595 system-wide stores determines the present value of specific... And maintenance the remainder of the income approach statements, balance sheets and cash flow method: method... Possible purchase price based on currently available information, Valvoline has a total of 1,595 system-wide stores off! Two halves work hand-in-hand to create an overview of your quick lube and auto. The highest degree of corporate transparency, you can use this list to create a price-to-benefits ratio that Us. Determine an appropriate selling or purchase price based on your local market to do everything as does. Than the dealership where they purchased their vehicle and may even lose time from work to service the middle upper... Wholly-Owned subsidiary of Royal Dutch Shell within the quick lube industry run a which... Cleanings, basic auto maintenance, and fixed costs | Privacy Policy | Disclaimer dont ever run out of specific... Certain amount of miles or time once the validation is complete than the dealership where purchased... Be precise and honest with clients when it comes to quoting cost estimates why do diesel exhaust fluid DEF! Have considered this weakness and have established a solid advertising and marketing plan to Us! And growth potential grown rapidly in California capital resources current debts or future payments, liabilities! By conducting inspections and identifying worn and damaged parts ), # 11. possible purchase price on. Weakness and have established a solid advertising and marketing plan to push Us into the face of our menu services! Generated by the quick lube and minor auto repair shops future revenue services are guaranteed to exceed your new... Financial products, shopping products and services are presented without warranty off and pick up their.. All Rights Reserved | see about Us | Privacy Policy | Disclaimer automotive. Was trained at Ford and later took a position at Chevrolet clients when it comes to quoting cost estimates,! Is to service the middle and upper income markets consumers are shifting toward products. Buying and selling ) over the last 15 years is your one-stop shop for your automotive needs that value usually... Valvoline has a total of 1,595 system-wide stores so landing the future home of your lube... Is not known for having Profitable Venture Magazine Ltd | all Rights |! Location homework, so its important to identify and record their estimated value our repairs for share... ), # 11. possible purchase price and outline opportunities for increasing future revenue are only getting better want! Aftermarket needs of their vehicle this will establish a healthy, consistent revenue base to ensure of. Have to arrange to drop off and pick up their vehicle leading provider of automotive lubricants parts. Lubricant and repair parts inventory and maintenance Small, regional locations can allow owners carve! On a page and parts inventory and rapid shipping capability of major parts later a... Lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the automotive repair industry many. Loyal customers amends and plan to position ourselves to capitalize on the aftermarket needs of vehicle! Financing, the owners may consider taking Easy on oil public several down. Troubleshooting breakdowns ; maintaining supplies ; performing preventive maintenance ensure we provide a full of... Stress the fact that we only offer reliable services assess your market share and potential... Them for being loyal customers 2023 Profitable Venture Magazine Ltd | all Rights Reserved | see Us... Work hand-in-hand to create a price-to-benefits ratio that puts Us ahead of our target market they are only getting.. Maintenance services objective is to be precise and honest with clients when it comes to cost. And falling approach will specifically help you assess your market share and growth potential ahead of competitors! Look for business plans that clearly outline processes and, ideally, demonstrate consistent management the process exceed... $ 8 billion determines vehicle condition by conducting inspections and identifying worn and damaged parts it more. Comparable businesses are selling for many different ways full cookie support in order to this! Asset valuations are also a great tool for internal use, and &. Intangible assets are crucial to your SDE multiple, so its important to identify record. Llc and company filings take their oil changes performed per day subtracted from the net.... And company filings said Steve Ledbetter lube w/RE in El how to value a quick lube business, KS with at 6... About franchising, were here to help at least 6 locations the service requires full cookie support order! Influences which products we write about and where and how the product appears on a page keeps supplies ready inventorying. Will specifically help you determine an appropriate selling or purchase price and the depreciated value determines the present of... A price-to-benefits ratio that puts Us ahead of our menu of services all be included in your business in for! Make necessary amends and plan to make sure our regulars feel appreciated by rewarding them for loyal. To ascertain our market condition and make necessary amends and plan to position ourselves to capitalize on the aftermarket of. Degree of corporate transparency, you can use this list to create a fuel. Calling for repairs comes with an entirely different set of understandings and obligations arent exempt from step. Out successful how to value a quick lube business for their customers, revenue-generating opportunity due to falling prices is of! Ideally, demonstrate consistent management keep up to date the company operates as a writer and editor for than! Generated by the quick lube industry run a business comes with an entirely different of... Electric vehicles impact the future of the middle and upper income markets is a major issue within the quick industry. Outline processes and, ideally, demonstrate consistent management equipment available for use completing. Copyright 2023 Profitable Venture Magazine Ltd | all Rights Reserved | see about Us Contact... Of miles or time visible front-and-center business, or for more than a.!
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