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. 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. Sally Lauckner is an editor on NerdWallet's small-business team. 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. Sample 1 Sample 2 Sample 3 Based on 6 documents We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. I went in for just an oil change and a lube, and I'll be taking all such . You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? unconditionally recommend Mike and his team. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. People are graciously buying cars and comfort. 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. Along with that, all-electric vehicles can pose some challenges to auto mechanics. 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. 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. 26% of quick lube businesses in the United States operate as a freestanding operation. This business is your one-stop shop for fast and friendly oil change & maintenance services. People will continue to drive regardless of the general economic market. Short overview of your business or personal finances. Most locations achieve this figure with just 2-5 service bays available to them. (Valvoline). 72% of operators within the quick lube industry operate one location only. 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. 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. Theres a different SDE multiple for every industry. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. Over 70% of the customers a quick lube business receives originates within 10 miles or less of the business location. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. These conservative assumptions make for a more accurate estimate of real risk. 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. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. Its crucial that prospective buyers understand SDE, too. Regardless of the option you pursue, get the word out with our help. If you are contemplating a transaction in the auto service sector I can On top of that, he communicated everything in an We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. This does come at a cost though. In total, Driven Brands has 1,100-plus locations across North America. We have identified several high priority points that will help you take your business to the next level. 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. Here is a list of our partners. Our 2022 recap of everything that happened in the fuel and lubricant industry. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. 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 keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. KEYWORDS oil change Operations Quick Lube. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. We understand that starting a business like ours can be very expensive due to the high cost of equipment. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. 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. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. For a full breakdown of the quick lubes we have for sale, as well as a On average, 2/3 of business comes from . The appeal of a quick lube business is easy to see. One common method used to value small businesses is based on seller's discretionary earnings (SDE). Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. 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. Re-opening a former auto repair or quick lube business can save significant time and money. 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. 3. Learn more about financial projections, income statements, balance sheets and cash flow. Our Mission and Vision Statement 5. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. What often separates one lube shop from another is its creative marketing strategies. (NOLN Fast Lube Operators Survey), #23. Temple worked as a top sales rep at Chevrolet for over 13 years. A lube operator not advertising during slow economic periods will likely find that the competition is. Figure 1: VVV's Segment Operating Income Since 2015. We will give a guarantee on all our repairs for a certain amount of miles or time. Looking to make a smart automotive business investment? A well-run business will make transitioning ownership, without losing. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. First, make a detailed report of your business assets and liabilities. (IBIS World), #3. 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. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Groups exist on the state and federal level to help with seed money. 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. 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. 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. Often, sellers keep their business liabilities and pay off their debt after their business is sold. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. Keep up to date on our new listings and business opportunities. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. More on liabilities in a bit. How to Write a Waterless Car Wash Business Plan [Sample Template], How to Write a Salvage Yard Business Plan [Sample Template], How to Write a Vehicle Testing Station Business Plan [Sample Template], How to Write an Autonomous Vehicle Production Business Plan [Sample Template], How to Write a Mobile Alloy Wheel Repair Business Plan [Sample Template], How to Write a Lubricant Oil Production Business Plan [Sample Template], How to Write a Party Bike Business Plan [Sample Template], How to Write an ATV Rental Business Plan [Sample Template], How to Write a Valet Parking Business Plan [Sample Template], How to Write a Diesel Engine Repair Shop Business Plan [Sample Template], cars are impacting the future of the automotive repair industry. The quick lube industry focuses on providing oil changing services for automobiles. possible purchase price and outline opportunities for increasing future revenue. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Pre-qualified offers are not binding. 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. brokers, but I have to say that I have not worked with a more professional and diligent 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. 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. Too often, making an appointment for an oil change or other routine maintenance takes too long. The service requires full JavaScript support in order to view this website. (Business Wire), #14. The income approach to business valuation determines the amount of income a business can expect to generate in the future. 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. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. They are responsible for the direct employment of almost 90,000 people. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. (IHS Automotive), #22. Quick Lube operating income is up to $162 million TTM . Subscribe to our Blog. To reach our local customer base, we will employ a marketing manager. Many or all of the products featured here are from our partners who compensate us. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. Order Reprints. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. The most popular brand-name for freestanding businesses is Jiffy Lube. Pre-qualified offers are not binding. The Top Automotive Oil Change Franchises of 2023. We plan is to grow sales through word-of-mouth. If YES, here is a sample Quick Lube business plan template & feasibility report. Youve come to the right place. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! ", 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. 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. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . The average vehicle owner will change their oil about every 5,000 miles. Note that each of the three co-owners will invest an equal amount. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. 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 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. Maintains vehicle records by annotating services and repairs. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. 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. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. Competition discounting is a major issue within the quick lube industry at the local level. 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. Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. As a first time buyer, I had a lot of extra Full range of Auto Lubricants and Repair Parts store. Our Services are guaranteed to exceed your vehicles new car warranty standards! A valuation represents your companys total worth. www.ratchetandwrench.com is using a security service for protection against online attacks. Generating Funding/Start up Capital for Easy On Oil. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. Over half of these competitors offer both auto repair services, although without an inventory store. 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. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. vendors, insurance agents, and others. About 70% of the revenues generated by the average quick lube location come from oil changes when multiple services are available for consumers. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. (Car Wash Magazine), #7. You'll need a minimum of $50,000 cash as a startup fee. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. The profitability of individual companies depends on convenient location and good marketing. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. (Valvoline), #24. We also plan to leverage an automotive service scheduling software program. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. (Business Wire), #16. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. We have trained and will keep training employees to focus on delivering on our promise. Check out the ACS reviews left by our clientele. The remaining are small privately-owned establishments. So, most hybrid-electric cars do not ever run on electricity alone. Meredith has worked as a writer and editor for more than a decade. Job Roles and Responsibilities 6. 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. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. Take 5 Oil Change is one of their fastest growing brands. 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. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. The appeal of a quick lube business is easy to see. Mike has been instrumental in helping me successfully complete 4 transactions (both This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. 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