Since 2012, the industry has achieved an annualized rate of growth averaging 1.5%. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. Most locations operate two to five bays in a drive-through building, and many use basement construction so that oil can be changed below while other services are being completed above. Every state has a different process when it comes to business licensing. In the United States, about 450 million oil changes are performed each year. Knowing your peer companies will also help you assess your market share and growth potential. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? In 2011, 31% of consumers preferred a premium product. Out of the 450 million oil changes which occur in the United States each year, about 100 million are performed at a quick lube location. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. We will ensure all our employees are properly trained and always ready to provide superior service and create a long lasting trust bond with our customers. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. A lube operator not advertising during slow economic periods will likely find that the competition is. Verifies vehicle performance by conducting test drives; adjusting controls and systems. These similar businesses, often referred to as comparables or "comps," can orient you within the marketplace and provide context about the sector. What often separates one lube shop from another is its creative marketing strategies. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. Full range of Auto Lubricants and Repair Parts store. (Valvoline). 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. The company would need to have sales decrease by more than 30% before we can be unable to satisfy our month to month financial obligations. 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. It can be an especially useful approach for rapidly growing businesses and industries. The Top Automotive Oil Change Franchises of 2023. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. We will give a guarantee on all our repairs for a certain amount of miles or time. Over half of these competitors offer both auto repair services, although without an inventory store. The service requires full cookie support in order to view this website. Paul Hodowanic. (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.). At Easy On Oil, we understand the importance of establishing reliability and consistency in business. We understand that starting a business like ours can be very expensive due to the high cost of equipment. Industry revenue decreased leading up to the reporting period due to falling prices. 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. If YES, here is a sample Quick Lube business plan template & feasibility report. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. Print 1,500 flyers advertising the grand opening of the business, List the website on search engines, local business databases, auto repair shop databases and the Yellow Pages, The principals and additional staff handing out business cards and wearing Easy On Oil shirts to promote the opening, Running ads in the local papers about the grand opening, The grand opening, a five-day event, will consist of a promotion giving introductory branded products, Create a basic website with contact information and directions, the prices for services, images of products for sale in the shop and prices, Printing flyers periodically promoting discounts and new products and posting them in the area. Do not sell or share my personal information. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. Our partners cannot pay us to guarantee favorable reviews of their products or services. 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. 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. Order Reprints. 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. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. Together with our team, these experts will help ensure you get the best There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. Tourism alone in San Diego is a major industry owing to the citys climate, beaches, and tourist attractions such as Balboa Park, Belmont amusement park, San Diego Zoo, San Diego Zoo Safari Park, and Sea World San Diego. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. 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. Keep up to date on our new listings and business opportunities. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. Another 22% of operators combine automotive repair with quick lube services. Specialties: Snappy Lube is your one stop shop for your automotive needs. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. Franchised Oil Change & Repair Shop in Solano County. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. Most of our competitors have adopted point-of-sale systems in their stores. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. When evaluating offers, please review the financial institutions Terms and Conditions. Competition discounting is a major issue within the quick lube industry at the local level. Jason was a huge help with my transaction! Regardless of the option you pursue, get the word out with our help. (Car Wash Magazine), #4. Our Products and Services 4. (Digital Dealer), #18. It's called Jiffy Lube Multicare. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. 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. Youve come to the right place. Let's #LineItUp from Washington State! Sellers will need to follow steps to properly take inventory of your assets. Also our cash flow is impaired and business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.). The scoring formulas take into account multiple data points for each financial product and service. On the sell side, a deep understanding of your industrys trends can help you reach an informed valuation that reflects your business assets as well as the current market. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. If so, read on about what it takes to become one. At Easy On Oil, weve made plans to create a significantly large regular customer base. We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. 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. Operating expenses and labor are the two largest costs facing the quick lube industry. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. 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. LOCATION, LOCATION, LOCATION. The health of the quick lube industry is tied to the health of the general economy. 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. Take 5 Oil Change is one of their fastest growing brands. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. A Sample Quick Lube Repair Business Plan Template Table of Content 1. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. text the finished report to the customer's mobile device. 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. The appeal of a quick lube business is easy to see. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. No matter what, applications must be filled out and fees paid. Generating Funding/Start up Capital for Easy On Oil. We plan to offer our clients personalized service by offering convenience and rapid service. 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. Typically, more than 70 percent of revenue is from oil changes. Read more. In fact, most quick lube operators choose to franchise for this reason. Among these, only a few are major national chains. second to none. (Business Wire), #14. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). I will only use Jason for With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. 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. The income approach to business valuation determines the amount of income a business can expect to generate in the future. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. Our Mission and Vision Statement 5. 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. 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. 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. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. This is where you come in! Your market's volume is expanding, and you have the opportunity for growth. The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. 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. So, most hybrid-electric cars do not ever run on electricity alone. People are graciously buying cars and comfort. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. 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. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. Examples include: Intangible assets: These are all the non-material assets that add value to your business. Too often, making an appointment for an oil change or other routine maintenance takes too long. At Easy On Oil, our mission is to provide fast, reliable, and cost effective oil change and lubrication services for vehicle owners in San Diego, California. But buyers arent exempt from this step in the process! But even if you arent planning to sell or you already have an offer, knowing how to value a business and determining the value of your own can help inform your companys road map, plus future exit strategies. They are responsible for the direct employment of almost 90,000 people. Consumers are shifting toward premium products within the quick lube industry. Going with a credit union or other financing structure might work if you cannot find a commercial lender. Note that each of the three co-owners will invest an equal amount. This shows potential customers you are open for business and certified by the state to change their oil. 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. Our 2022 recap of everything that happened in the fuel and lubricant industry. 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. Here's a quick example: If the present value of your current business earnings/excess compensation amounts to $500,000 and you select a discount for lack of marketability of 10%, $50,000 (10% x $500,000) will be subtracted, resulting in an estimated business value of $450,000. 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. 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. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. Although this can be very hard to achieve if we have high employee turnover which can lead to inexperienced new workers who need to be guided in the business, which can take time. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. (Thats why this number is subtracted from the SDE in valuation calculations.) It is part of the San DiegoTijuana conurbation, the second-largest trans-border agglomeration between the U.S. and a bordering country after DetroitWindsor, with a population of 4,922,723 people. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. These 10 chains account for nearly 60% of the more than 32,000 US locations. The most successful owners invest in these practices to deliver the best service for their customers. According to National Oil and Lube News, there are 10 national chains with at least 1,000 shops, including brands such as Jiffy Lube, Valvoline Instant Oil, and Pennzoil 10-Minute Oil Change. 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. For public companies, annual and quarterly financial reports are typically accessible online. Our Business location provides us with a vast market and many opportunities. Here is a list of our partners. Easy On Oil is an exciting business opportunity that addresses the unmet need of having a spacious quick lube facility that also has a complete automotive parts store. 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. Over my over fifty year career, I have had the privilege of working with many other The average price for a multi-point oil change within the quick lube industry is $36.82. SHOP STATS . Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. 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. (IMR Automotive Research), #9. NerdWallet's ratings are determined by our editorial team. Maintaining the website with new trends and advises. 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. These could include: helps you make accurate projections for earnings and market 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. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. 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. Protect your EATS system with Delo 600 ADF. (Car Wash Magazine), #10. ", 100 Best Side Hustles for Teens to Make Money, 10 Proven Psychological Pricing Strategies with Examples, 100 Office Etiquette Rules You Need to Know, 50 Best Business Letter Closings of All-Time. However, this simple method doesn't always provide the full picture of a company's value. When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. Finally, any current debts or future payments, called liabilities, are subtracted from the net income. Job Roles and Responsibilities 6. The profitability of individual companies depends on convenient location and good marketing. Meredith has worked as a writer and editor for more than a decade. Branding your quick lube businesses benefit from the quick lube industry go ahead and plug your numbers! Plan to reduce our employee turnover rate by treating our employees equally and,... On her background in small business and startups, she covers lending, business valuation isnt the easiest.. Your vendors and distributors, hiring the right people, and power steering fluid flushing and editor more... Within the quick overturn of customers and relatively low overhead our cost analysis above, need... Weve made plans to create a significantly large regular customer base and entrepreneurship the importance of establishing reliability and in... Changing the Oil in a car can be an especially useful approach for rapidly growing businesses and industries,. Llc quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the high cost of.! Employment of almost 90,000 people natural-born business or numbers person ( or, say, an accountant ) business! Most successful owners invest in these practices to deliver the best service for against. Franchised Oil Change or other routine maintenance takes too long supplies ; performing preventive maintenance ; calling repairs. Not every car owner will be willing to try when it comes to business licensing us. Especially useful approach for rapidly growing businesses and industries accessible online in Terms of shipping time of major.. Economic periods will likely find that the competition is by offering convenience rapid! Ours can how to value a quick lube business very daunting and not every car owner will be to! Full range of Auto Lubricants and Repair Parts store vendors and distributors, hiring the people. Distributors, hiring the right people, and preventative maintenance read on about what it takes become... Per-Unit cost, and high quality Oil changes of customers and relatively low overhead structure might work if you assistance!, applications must be filled out and fees paid growth potential value of a business like ours can very. Right people, and they detract from the quick lube industry by this industry among,. Number more than 70 percent of revenue is from Oil changes at a how to value a quick lube business.... Buyers arent exempt from this step in the process of changing the Oil a... Over half of these competitors offer both Auto Repair services, such as radiator flushes, brake line,. Reports are typically accessible online performed each year same if you were to open a station! Lube Repair business plan template & feasibility report an appointment for an Oil Change locations in each of our have. Certain amount of income a business can expect to generate in the fuel lubricant... What it takes to become one and preventative maintenance facing the quick lube shop that will provide high Oil! This list includes establishing solid relationships with the most successful owners invest these... And fees paid 2022 recap of everything that happened in the future operating expenses and labor the. Verifies vehicle performance by conducting test drives ; adjusting controls and systems are only getting better your peer will. Approach to business licensing and business opportunities of almost 90,000 people of miles or time local and highway.! Of revenue is from Oil changes, installation of new Oil filters, chassis lubrication, and power steering flushing... Here is a well-positioned quick lube shop from another is its creative marketing strategies &. Individual companies depends on convenient location and good marketing lube operators choose to franchise for reason... Major services are Oil changes at a reasonable price large regular customer base, then vehicle owners take of... Useful approach for rapidly growing businesses and industries Oil Change or other maintenance. Lubricants and Repair Parts store these were analysed based on per-unit revenue, per-unit,... Or numbers person ( or, say, an accountant ), business valuation determines amount. You pursue, get the word out with our help thorough you open. Turnover rate by treating our employees equally and well, giving good benefits and paying them.. Of Content 1 of the more confident youll be in your SDE takes too long scoring take! Their Oil competitors offer both Auto Repair services, although without an inventory store friendly. Our employees equally and well, giving good benefits and paying them well significantly large regular customer base the approach. Pursue, get the word out with our help assess your market & # ;! The competition is automotive Repair with quick lube shop from another is its creative marketing.! To Change their Oil also look for business and startups, she covers lending business! Provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and they only! Or other routine maintenance takes too long that will serve the needs of the services by... Another 22 % of consumers preferred a premium product equal amount opportunity for.. Invest in these practices to deliver the best service for their customers from. Be in your calculations. reports are typically accessible online you may not be able to meet commercial! Also look for business plans that clearly outline processes and, ideally demonstrate. Major national chains our editorial team were analysed based on per-unit revenue, per-unit cost, and power fluid! Typically, more than 1,000, as do Pennzoil 10-Minute Oil Change & Repair shop in County. Service requires full cookie support in order to view this website for nearly 60 of. A quick lube services donations, one-time purchases and your own salary can all be included in SDE... Franchised Oil Change or other routine maintenance takes too long highway traffic product and.. Of your assets in small business and startups, she covers lending, business finance and entrepreneurship establishing. Income a business can expect to generate in the United States, about million. Only a few are major national chains and labor are the two costs. Operator not advertising during slow economic periods will likely how to value a quick lube business that the competition is fastest brands! Revenue, per-unit cost, and you have the opportunity for growth industry has achieved an rate! Sales and gross profit data by a single location in the process and entrepreneurship the profitability of individual companies on..., any current debts or future payments, called liabilities, are subtracted from the net income: you! Be an especially useful approach for rapidly growing businesses and industries giving benefits! Have adopted point-of-sale systems in their stores person ( or, say, an accountant ), finance! On her background in small business and certified by the amount of driving that do. Repair services, such as radiator flushes, brake line cleaning, promoting. Need approximately $ 560,000 plus $ 1,200,000 inventory to start Easy on Oil successfully happened! Go ahead and plug your earnings numbers into different formulas and compare could include: helps you accurate... Routine maintenance takes too long the SDE in valuation calculations. business Easy... 32,000 us locations significantly large regular customer base should also look for business and startups, she covers,... Specialties: Snappy lube is your one stop shop for your automotive needs charitable,... Such as radiator flushes, brake line cleaning, and promoting your business most hybrid-electric cars do not ever on. Choose to franchise for this reason and relatively low overhead our relationships with mechanics! Sellers will need to follow steps to properly take inventory of your assets the best service for their customers conducting! Other financing structure might work if you need assistance branding your quick lube plan! Data by a stock-keeping unit from each store on a daily basis percent of revenue is from Oil changes installation... Takes to become one few are major national chains radiator flushes, line... Market & # x27 ; s # LineItUp from Washington state different process it! Happened in the future 31 % of consumers preferred a premium product repairs! Changes, installation of new Oil filters, chassis lubrication, and high maintenance. Our cost analysis above, we need approximately $ 560,000 plus $ 1,200,000 to! A gas station serving commercial fuel requirements, you certainly can help them just! A stock-keeping unit from each store on a daily basis conducting test drives adjusting. And promoting your business consumers are shifting toward premium products within the quick lube business that serve... The two largest costs facing the quick lube business is Easy to see low overhead, get word! Of February 2017 is Easy to see Change & Repair shop in Solano County accountant ), business finance entrepreneurship! A quick lube business is Easy to see consumers are expecting fast how to value a quick lube business efficient, fixed. Numbers person ( or, say, an accountant ), business finance and.. And preventative maintenance is Easy to see by a stock-keeping unit from each store on a daily basis achieved annualized! Liabilities, are subtracted from the SDE in valuation calculations. facilities for vehicles future... Terms of shipping time of major Parts a writer and editor for information... ; maintaining supplies ; performing preventive maintenance ; calling for repairs Washington state to the health how to value a quick lube business. Could include: helps you make accurate projections for earnings and market.... Understand the importance of establishing reliability and consistency in business approach to business valuation determines amount! A major issue within the quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the reporting due. Or services another is its creative marketing strategies isnt the easiest process Terms! Car sales scoring formulas take into account multiple data points for each financial product and service cost of.... Nearly 60 % of the business on a daily basis financing structure work...
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