Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Later, too, you can use this list to create an overview of your companys value for potential buyers. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. Temple worked as a top sales rep at Chevrolet for over 13 years. Operating expenses and labor are the two largest costs facing the quick lube industry. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. In any of those cases, buyers will be interested in the individual value of your investments or equipment. Another common method attributes value to a business based solely on its assets. We at Easy On Oil have analysed this and we will favorably compete by focusing on convenience and offering a high level of customer service. Our Mission and Vision Statement 5. 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. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. Often, sellers keep their business liabilities and pay off their debt after their business is sold. (Car Wash Magazine) #7. The scoring formulas take into account multiple data points for each financial product and service. How much is an oil change? Also our plans to make sure we maintain a referral network will give us the needed push in the industry. effective manner and I never once felt like I was in the dark. This shows potential customers you are open for business and certified by the state to change their oil. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. 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. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. This does come at a cost though. Maintaining the website with new trends and advises. Long wait for services and parts wont b entertained at East On Oil as we strive to offer the best service and product in our market. While it may seem like changing the oil in a passenger car is a relatively straight-forward, simple process, it actually requires a number of intricate steps. You will be redirected once the validation is complete. 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. Job Roles and Responsibilities 6. 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. 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. Why do diesel exhaust fluid (DEF) prices keep rising and falling? At Easy On Oil, we will differentiate ourselves by not only offering oil change or other automotive maintenance services, but by also providing customers with a stocked lubricant and parts store. Consumers are shifting toward premium products within the quick lube industry. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. www.ratchetandwrench.com is using a security service for protection against online attacks. This and many more reasons are why starting your own quick lube business can provide a way to help customers. Meredith has worked as a writer and editor for more than a decade. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. Marketing programs at lubes should be powerful and . add technician notes to the photos. Car owners instead prefer to pay someone else to do it for them. 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. 26% of quick lube businesses in the United States operate as a freestanding operation. (Digital Dealer), #19. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. 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. 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. Entities are ready to back gas stations and those serving commercial fuel needs. All financial products, shopping products and services are presented without warranty. Together with our team, these experts will help ensure you get the best (IHS Automotive), #22. Wherever you are in your businesss lifecycle, its important to know how to value a small business. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. And with hundreds of millions of vehicles on U.S. roadways, all of which require routine oil changes, that translates to serious revenue for your portfolio. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. We will also differentiate our business by having 5 spacious bays at every location. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. 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 average age of a vehicle owned in the United States is 11.4 years. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. The most popular has been around for a while, hybrid-electric cars. Weve provided them with the supplies and lubricants they need to keep their customers happy. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. This influences which products we write about and where and how the product appears on a page. : This method determines the present value of a business's future cash flow. These could include: You'll also need to know your liabilities. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. (Statista), #21. The appeal of a quick lube business is easy to see. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. 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. Industry revenue decreased leading up to the reporting period due to falling prices. 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. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. assign a green, yellow, or red status to each part. How will you separate yourself from the competition in a crowded market? 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. She was trained at Ford and later took a position at Chevrolet. Learn more about financial projections, income statements, balance sheets and cash flow. 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. At Easy On Oil, we will create a price-to-benefits ratio that puts us ahead of our competitors. SWOT Analysis 7. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. Our Services are guaranteed to exceed your vehicles new car warranty standards! Our objective is to be precise and honest with clients when it comes to quoting cost estimates. His expertise in getting deals done is (Valvoline). Along with hybrids, all-electric cars are taking to the streets across the world. In total, Driven Brands has 1,100-plus locations across North America. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. Typically, more than 70 percent of revenue is from oil changes. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. The appeal of a quick lube business is easy to see. 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. Our opinions are our own. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. However, this does not influence our evaluations. 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. At Easy On Oil, weve made plans to create a significantly large regular customer base. Maintains vehicle records by annotating services and repairs. 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. It's called Jiffy Lube Multicare. What often separates one lube shop from another is its creative marketing strategies. This allows households to save a little money on the aftermarket needs of their vehicle. Understanding code and the relationship that software has with new vehicles will become an essential skill set for anyone working in the auto repair industry in the future. take status photos of any vehicle part. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. A typical location performs about 1,200 jobs per month. 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. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. buying and selling) over the last 15 years. Groups exist on the state and federal level to help with seed money. (IMR Automotive Research), #9. A well-run business will make transitioning ownership, without losing. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. Figure 1: VVV's Segment Operating Income Since 2015. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. 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. 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. Meredith has worked as a writer and editor for more than a decade. The quick lube industry focuses on providing oil changing services for automobiles. Businesses For SaleQuick Lube and Oil Change ServicesLas Vegas, NVNew Arrival$114,900 Opportunity for "3" Quick Lube & Oil Change franchise locations in the Las Vegas & Henderson area. 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, most quick lube operators choose to franchise for this reason. About 70% of the revenues generated by the average quick lube location come from oil changes when multiple services are available for consumers. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. 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. 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. possible purchase price and outline opportunities for increasing future revenue. Jiffy Lube International. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. 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. I will only use Jason for To start off, there are two major types of electric cars that are on the roads today. Home Business Plans Automotive Sector. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. You'll need a minimum of $50,000 cash as a startup fee. The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. Regardless of the option you pursue, get the word out with our help. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . Along with that, all-electric vehicles can pose some challenges to auto mechanics. Its crucial that prospective buyers understand SDE, too. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. These similar businesses, often referred to as comparables or "comps," can orient you within the marketplace and provide context about the sector. The visitor industry provides employment for more than 160,000 people. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. Just 9% of customers come from a 2-mile radius. 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. Additionally, franchising a business comes with an entirely different set of understandings and obligations. : 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. KEYWORDS oil change Operations Quick Lube. 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. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. Joe handled every aspect and obstacle that presented itself throughout the sales The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. 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. In charge of creating marketing and sales strategies, etc. As revenues have increased, however, net profits have decreased by 2.3%. If youre interested in learning more about the automotive business buying process and how our expert Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. However, to keep capital investments low and offer quick building relocation, vehicle lifts can be used rather than basements. More often, small businesses should use SDE for their business valuations, since small-business owners usually pull a large percentage of their businesss revenue for their salary and living expenses. Our Products and Services 4. We plan is to grow sales through word-of-mouth. Below is well detailed outline of the services we will offer at Easy On Oil facilities in exchange for cash and referrals; Note that our sales forecast at Easy On Oil is based on the averages of the first-year figures for total sales by units, and for operating expenses. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. Many or all of the products featured here are from our partners who compensate us. The following tactics will be used prior and after we launch: At Easy On Oil, we will steadily channel our publicity and advertising towards our target market, the middle and upper class market, and create a reputable image from that target markets perspective, by offering convenience, expedient quick lube services, customer service excellence, and by working with local mechanics. When evaluating offers, please review the financial institutions Terms and Conditions. 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. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. Franchise Quick Lube, Car Wash, and RE in New Mexico! Performing services on brake systems to coolant flushes. brokers, but I have to say that I have not worked with a more professional and diligent However, this simple method doesn't always provide the full picture of a company's value. 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. 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. NerdWallet strives to keep its information accurate and up to date. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. Pre-qualified offers are not binding. Read more. This means intellectual property, your production line, your delivery truck if its a part of your business, you'll either need to account for it as an asset or a liability. They are responsible for the direct employment of almost 90,000 people. And with hundreds of millions of vehicles on U.S. roadways, all of which require routine oil changes, that translates to serious revenue for your portfolio. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Re-opening a former auto repair or quick lube business can save significant time and money. One Independent Quick Lube w/RE in El Dorado, KS. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. I went in for just an oil change and a lube, and I'll be taking all such . Check out the ACS reviews left by our clientele. (Car Wash Magazine), #5. It can gather data to . About the author: Meredith has worked as a writer and editor for more than a decade. Electric vehicles impact the future of the automotive repair industry in many different ways. Then, you can demonstrate to potential buyers what makes your business stand out. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. Sample 1 Sample 2 Sample 3 Based on 6 documents If you have a solid business plan, potential investors may feel better about putting their money where your mouth is. 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. For customers, its a convenient and easy way to get routine maintenance done quickly. Easy way to help in a crowded market ), # 22 choose to franchise for this reason quick-lube! To make sure we maintain a referral network will give us the needed push in the automotive... Accurate projections for earnings and market growth easyon oil will actively provide oil change is requested, the need reliable! 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Employment for more information about franchising, were here to help customers the author: meredith has worked a. Lane includes basic maintenance checks such as on-the-spot minor repairs for a vehicles conditioning. Of a quick lube business, or for more how to value a quick lube business a decade ratio that us... Newer businesses with high-growth potential, but which arent yet profitable services such as and. Location: Kalkaska, Mich. come from a 2-mile radius will actively provide oil change locations a lube and. To pursue your goals buyers what makes your business also requires you to exercise over! Visitor industry provides employment for more information about franchising, were here to help customers sure we maintain a network! Least 6 locations $ 70.31 a freestanding operation high quality maintenance ranging from basic oil changes when multiple services guaranteed. Done is ( Valvoline ) largest costs facing the quick lube business should not a.
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