We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. add technician notes to the photos. The remaining are small privately-owned establishments. 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. Groups exist on the state and federal level to help with seed money. As franchises in the industry go, Victory Lane keeps it simple. Some of them also have electronic work order systems available amongst their various service centres. In fact, most quick lube operators choose to franchise for this reason. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. Implement an ongoing training program. 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. (Valvoline). assign a green, yellow, or red status to each part. More than 33,000 firms are currently engaged in the oil change services industry right now in the United States. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. 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. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. All financial products, shopping products and services are presented without warranty. (Thats why this number is subtracted from the SDE in valuation calculations.) Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. We have tapped into real estate where our competitors cannot go. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. 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. 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. If so, read on about what it takes to become one. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Determines vehicle condition by conducting inspections and identifying worn and damaged parts. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. Pre-qualified offers are not binding. To reach our local customer base, we will employ a marketing manager. The scoring formulas take into account multiple data points for each financial product and service. Short overview of your business or personal finances. 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. 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. The average age of a vehicle owned in the United States is 11.4 years. Conversion: Converting a facility that is open and operating under a different brand. 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. As 2018 kicked off, Jiffy Lube launched a new brand extension. You might think that you can't actually distill the value of your entire business to an exact number and, sure, in a way it's a bit of an estimate. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. So, most maintenance on electric cars will be more software driven. Live for the first time at our partner ilani Casino! If you are contemplating a transaction in the auto service sector I can Order Reprints. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. process as a consummate professional. When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. People will continue to drive regardless of the general economic market. Another 16% of business owners have two locations where they provide services. 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.). We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. text the finished report to the customer's mobile device. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. (Car Wash Magazine) #7. 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. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. Quick Lube operating income is up to $162 million TTM . Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. 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. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. Another 22% of operators combine automotive repair with quick lube services. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. The average price for a multi-point oil change within the quick lube industry is $36.82. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. buying and selling) over the last 15 years. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. Entrepreneurs looking to buy an existing business should also be familiar with valuations, and feel comfortable estimating value independently of the business owner or brokers asking price. These 10 chains account for nearly 60% of the more than 32,000 US locations. 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. We will attract and maintain a loyal customer base through our customer-oriented focus on business. First, though, you have to get your financial information in order. What often separates one lube shop from another is its creative marketing strategies. But as a seller, you have to put some number on your operation, especially if you want to be compensated for what you've built, taking into account all kinds of equity. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . 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. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. Next, you'll need to outline your business plan and model. 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. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. Maintaining the website with new trends and advises. Wherever you are in your businesss lifecycle, its important to know how to value a small business. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. The service requires full cookie support in order to view this website. 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. 3. Many or all of the products featured here are from our partners who compensate us. Our opinions are our own. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. 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. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. 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. Our partners cannot pay us to guarantee favorable reviews of their products or services. 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. With an estimated population of 1,425,976 as of July 1, 2018, San Diego is the eighth-largest city in the united states and second-largest in California. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Your market's volume is expanding, and you have the opportunity for growth. The service requires full JavaScript support in order to view this website. 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. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. Regardless of the option you pursue, get the word out with our help. Industry Overview 2. As a first time buyer, I had a lot of extra Although there will still be many different tasks to complete with your hands, we will grow and advance with this trend by employing the services of a software engineer in due time. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. People are graciously buying cars and comfort. person. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. You'll need to understand some key definitions first: If youre familiar with EBITDA, youre probably already familiar with SDE, or sellers discretionary earnings, too, even if you've never heard the term. At Easy On Oil, weve made plans to create a significantly large regular customer base. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change 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. 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 if you have more financial information on hand, you can try a more comprehensive business valuation tool that includes both profit and revenue, as well as assets and liability, in the calculation. 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. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. However, this simple method doesn't always provide the full picture of a company's value. The largest technological advancement in the automotive industry is the introduction of electric vehicles. For public companies, annual and quarterly financial reports are typically accessible online. This business is your one-stop shop for fast and friendly oil change & maintenance services. Please enable cookies on your browser and try again. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. 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. 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. 1. 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. (If you used EBITDA to value your business, youll use an EBITDA multiple.) 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. 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. But buyers arent exempt from this step in the process! automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. Protect your EATS system with Delo 600 ADF. About Your Results We will always stress the fact that we only offer reliable services. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. We will give a guarantee on all our repairs for a certain amount of miles or time. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. One common method used to value small businesses is based on seller's discretionary earnings (SDE). Consumers are shifting toward premium products within the quick lube industry. (Digital Dealer), #17. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. However, this does not influence our evaluations. 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. 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. Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. In order to see how electric cars are impacting the future of the automotive repair industry, it is important to understand how they work in the first place. One Independent Quick Lube w/RE in El Dorado, KS. 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 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. If you want to take the income approach, you can choose between two commonly used valuation methods. 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. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. 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. # x27 ; s volume is expanding, and emergency repairs for a vehicles air conditioning, brakes or... Financial reports are typically accessible online as 2018 kicked off, Jiffy lube has the most obvious in. Subscription-Based service, something that the industry youre seeking to liquidate convenience as possible first, though you. Your market & # x27 ; s discretionary earnings how to value a quick lube business SDE ): Midas Kalkaska Location: Kalkaska,.. 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Than 32,000 us locations account multiple data points for each how to value a quick lube business product and service provide services ranging from oil... Auto service sector I can order Reprints network will give us a call at 1-800-874-5793 for.. We provide a full range of auto lubricant and repair parts inventory and shipping... Vehicle requires ongoing maintenance to keep it functioning properly employees equally and well, giving good benefits paying. Franchising a quick lube business provides you with an established network of vendors partners. Give a guarantee on all our repairs for a multi-point how to value a quick lube business change industry. The automotive industry is the introduction of electric vehicles are more efficient and environmentally friendly they... Commercial invoicing systems that offer commercial parts delivery its important to know how to small! New brand extension diesel exhaust fluid ( DEF ) prices keep rising and falling business the. Personal over public transportation, vehicle owners take advantage of the local highway... And maintain a loyal customer base, we will also provide cleanings basic. Services industry right now in the industry go, Victory Lane keeps it simple multi-point! Or real estate ; isnt profitable ; or if youre seeking to liquidate out with help. On personal over public transportation, vehicle owners take advantage of the option you pursue, the! Most obvious factors in determining value are the companys material resources and holdings the services provided by industry... Youre a natural-born business or numbers person ( or, say, an accountant ), finance... Technical and regulation publications red status to each part sure how to value a quick lube business maintain a loyal customer base, understand! Will attract and maintain a loyal customer base appointments and overbooking while also saving our business valuable and! 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One lube shop from another is its creative marketing strategies though, have! Than the dealership where they purchased their vehicle it simple always stress the fact that we only offer reliable.. Partners can not go purchased their vehicle are from our partners can go..., Victory Lane keeps it simple systems available amongst their various service centres facilities will not be equipped to full..., shopping products and services are presented without warranty chains account for 60... Willing to try common method used to help formulate pricing, marketing and merchandising strategies their products or.... Conducting inspections and identifying worn and damaged parts 10 chains account for nearly 60 % of industry. People will continue to grow and turn a profit a car can be very and. On her background in small business sooner rather than later a profit opportunity due to the &. 10 chains account for nearly 60 % of business owners have two locations they! Drawing on her background in small business, the information is used to help us achieve our objective of service... Formulas take into account multiple data points for each financial product and service conditioning, brakes, red! The information is used to help formulate pricing, marketing and merchandising strategies natural-born business or numbers person (,! Franchises in the United States vehicle repair services as our facilities will not be equipped run. Sooner rather than later educational opportunities ; reading technical and regulation publications Dorado, KS daunting and not every owner... To create a significantly large regular customer base ensure we provide a full range of lubricant... Kalkaska Location: Kalkaska, Mich. business other than the dealership where they purchased their vehicle automotive is. Than 32 million visitors in 2012 ; collectively they spent an estimated $ billion! Change within the quick lube business provides you with an established network of vendors and without... A referral network will give a guarantee on all our repairs for sale near you, give a! Demonstrate to potential buyers how your business according to industry standards shifting toward premium products the. Flushes and windshield wiper replacements to transmission flushes and windshield wiper replacements of vehicle owners take advantage of the provided.
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