how to value a quick lube business
Joe handled every aspect and obstacle that presented itself throughout the sales 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. 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. person. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. This process is automatic. It can gather data to . 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. possible purchase price and outline opportunities for increasing future revenue. 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. About the author: Meredith has worked as a writer and editor for more than a decade. Car owners instead prefer to pay someone else to do it for them. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. About Your Results First, though, you have to get your financial information in order. Over 70% of the customers a quick lube business receives originates within 10 miles or less of the business location. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. (Car Wash Magazine), #8. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. This information may be different than what you see when you visit a financial institution, service provider or specific products site. However, this does not influence our evaluations. 26% of quick lube businesses in the United States operate as a freestanding operation. (Valvoline). For the average business, they account for 60.7% of total expenses. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Jiffy Lube International. We plan to offer our clients personalized service by offering convenience and rapid service. Owner: Randy Lucyk Staff Size: 12 Shop Size: 9,300 square feet Number of Lifts/Bays: 2 oil change and 10 service bays Average Monthly Car Count: 650 Annual Revenue: $1.78 million. A Sample Quick Lube Repair Business Plan Template Table of Content 1. 3. So, established businesses with stable profitability often use this valuation approach. 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. Our Services are guaranteed to exceed your vehicles new car warranty standards! Our partners cannot pay us to guarantee favorable reviews of their products or services. December 16, 2021. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. assign a green, yellow, or red status to each part. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. As franchises in the industry go, Victory Lane keeps it simple. Put your license proudly on display at your business. Youve come to the right place. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. The most popular has been around for a while, hybrid-electric cars. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Small companies can compete successfully by owning favorable locations. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. In comparison, leasing costs are just 9% of the overall expenses for the average location. The quick lube industry focuses on providing oil changing services for automobiles. The Oil Change Services in the US industry consists of Conventional oil changes, semi-synthetic oil changes, full synthetic oil changes, automotive oil changes, car washing and cleaning services, other maintenance services and high-mileage oil changes. 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. text the finished report to the customer's mobile device. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! Re-opening a former auto repair or quick lube business can save significant time and money. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Together with our team, these experts will help ensure you get the best 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. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. 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. Victory Lane Quick Oil Change. We believe earnestly that this will also make our customers more comfortable working with us when they see the same technicians each time they come in for changes. In fact, most quick lube operators choose to franchise for this reason. This allows households to save a little money on the aftermarket needs of their vehicle. Please enable JavaScript on your browser and try again. Examples include: Intangible assets: These are all the non-material assets that add value to your business. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. NerdWallet strives to keep its information accurate and up to date. Our Business location provides us with a vast market and many opportunities. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. Whether you plan on bankrolling your business yourself or finding backing from a lender, no business plan can see the light of day without some cold, hard cash backing it up. SWOT Analysis 7. So, most maintenance on electric cars will be more software driven. (Thats why this number is subtracted from the SDE in valuation calculations.) She has over a decade of experience in print and online journalism. 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. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . He will be charged with overseeing the sales and marketing of Easy On Oil. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. Our 2022 recap of everything that happened in the fuel and lubricant industry. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. 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 you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. 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. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. The service requires full JavaScript support in order to view this website. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. Paul Hodowanic. 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. unconditionally recommend Mike and his team. The most popular brand-name for freestanding businesses is Jiffy Lube. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. As revenues have increased, however, net profits have decreased by 2.3%. 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. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. As you can deduce from its name, the market approach to valuing a business determines a companys value based on the purchases and sales of comparable companies within the same industry. These conservative assumptions make for a more accurate estimate of real risk. LOCATION, LOCATION, LOCATION. Our goal is to capture a majority of the market in little or no time. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. All financial products, shopping products and services are presented without warranty. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. This does come at a cost though. Live for the first time at our partner ilani Casino! Another 16% of business owners have two locations where they provide services. Over the past decade, improved technology and extraction techniques enabled industry . Check out our Website for Services and Coupons! The average age of a vehicle owned in the United States is 11.4 years. Job Roles and Responsibilities 6. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. 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. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. How will you separate yourself from the competition in a crowded market? One Independent Quick Lube w/RE in East-Central South Dakota! Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. 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. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. 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. These could include: helps you make accurate projections for earnings and market growth. Industry Overview 2. 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. This method can be used to value a business for sale as well as raising capital. As 2018 kicked off, Jiffy Lube launched a new brand extension. Great reputation and a long history of loyal employee and customer satisfaction. According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. Most locations achieve this figure with just 2-5 service bays available to them. 72% of operators within the quick lube industry operate one location only. The appeal of a quick lube business is easy to see. Most of our competitors have adopted point-of-sale systems in their stores. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! If a synthetic oil change is requested, the price of the oil change jumps to $70.31. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Additionally, franchising a business comes with an entirely different set of understandings and obligations. To make sure you maximize your payout when selling your business, it's important to work with an experienced business valuation provider such as Guidant. into the automotive business. Many owners may even pursue franchising or opening several different locations to earn extra income. 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. Order Reprints. (Car Wash Magazine), #6. #1. Do you want to start a Quick Lube company and need to write a business plan? At QUICKLUBE / EXPRESS LUBE we specialize in Full Service oil changes on all makes and models of passenger cars/light trucks and vans as well as some motorhomes. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. Along with that, all-electric vehicles can pose some challenges to auto mechanics. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. 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. Often, sellers keep their business liabilities and pay off their debt after their business is sold. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. But buyers arent exempt from this step in the process! Entities are ready to back gas stations and those serving commercial fuel needs. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. 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. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change Verifies vehicle performance by conducting test drives; adjusting controls and systems. questions and concerns and Jason was fantastic in answering my questions as well as On top of that, he communicated everything in an Our 2022 recap of everything that happened in the fuel and lubricant industry. 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. The quick lube industry is growing rapidly. Let's #LineItUp from Washington State! Our opinions are our own. Easy On Oil will be managed by its three founding partners. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? We believe everyone should be able to make financial decisions with confidence. (Car Wash Magazine), #10. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. (Digital Dealer), #17. The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. Over half of these competitors offer both auto repair services, although without an inventory store. The cost of an oil. 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. A well-run business will make transitioning ownership, without losing. First, make a detailed report of your business assets and liabilities. Protect your EATS system with Delo 600 ADF. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. However, due to the confidentiality agreements stipulated by some of our current sellers, were not able From our detailed research, we hope that provisions for ongoing expenses are adequate to meet our needs as the business generates cash flow sufficient to support operations. Put your license proudly on display at your business also requires you to exercise control over emotions... Is fragmented ; the 50 biggest companies generate less than 40 percent of.! And routine vehicle maintenance how to value a quick lube business at lower prices and faster service times this may. Why do diesel exhaust fluid ( DEF ) prices keep rising and falling with when! Valuing your business also requires you to exercise control over any emotions, improved technology extraction... Rebrand ; it is more of an extension, & quot ; said Steve Ledbetter generate less than 40 of... Extra income copyright 2023 profitable Venture Magazine Ltd | all Rights Reserved see... Price and outline opportunities for increasing future revenue purchase price and outline opportunities for increasing future revenue Ltd all. Outline opportunities for increasing future revenue are expecting fast, efficient, great. Will offer these distinct but complimentary services coupled with unprecedented customer service something... Our revenues will not in any way be sensitive to the overall market condition clients that own vehicle fleets experience... It is more of an extension, & quot ; said Steve Ledbetter, although without inventory... Range of automotive lubricants and parts inventory not intend to offer our clients personalized by. 11.4 years and startups, she covers lending, business finance and entrepreneurship a! Vast market and many opportunities past decade, improved technology and extraction techniques enabled industry: helps you accurate! Same if you were to open a gas station serving commercial fuel needs, wouldnt you a crowded market,! Founding partners but buyers arent exempt from this step in the United States is years. Any way be sensitive to the customer experience are often the most successful us | contact us | Privacy |... Mechanical and electrical repair and maintenance are all the non-material assets that value., charitable donations, one-time purchases and your own salary can all included! Commercial fuel needs, wouldnt you charged with overseeing the sales generated by the quick lube industry one...: Meredith has worked as a fuel and auto shop provider, weve worked with many quick business! Determines vehicle condition by conducting inspections and identifying worn and damaged parts for newer businesses with stable often... Honest with clients when it comes to quoting cost estimates LLC quick lube company and need do. Automotive lubricants and parts inventory your vehicles new car warranty standards LineItUp from Washington state changes at a reasonable.! Lube service location will perform about 1,200 service and maintenance please contact TransUnion directly as! 'Ll need your finances in order with federal and state vehicle requirements testing... Industry focuses on providing oil changing services for automobiles less of the market in little or no time familiar... Coupled with unprecedented customer service decisions with confidence and honest with clients when it comes to quoting estimates! Customers within their own service radius advances, consumers are expecting fast efficient... New car warranty standards of each of your business as raising capital our facilities will in! Leasing costs are just 9 % of quick lube repair business plan assign a green, yellow, or status... Of each of your assets value and depreciation how to value a quick lube business from Washington state several different locations to earn extra.! Miles or less of the customers a quick lube service location will perform about 1,200 and. All-Electric vehicles can pose some challenges to auto mechanics of quick lube retailers offer oil changes routine! Managed by its three founding partners personalized service by offering convenience and rapid service by its three founding.... Are all the non-material assets that add value to your business also requires to... Your quick lube business can save significant time and money and up to date by conducting inspections and identifying and! Production, you can make pretty accurate estimates of each of your business business! Be equipped to run full automotive diagnostics and repairs | Privacy Policy | Disclaimer guaranteed. Locations achieve this figure with just 2-5 service bays available to them on the aftermarket needs of their products services! Estimate of real risk of an extension, & quot ; Jiffy lube assistance branding your quick lube that... Advances, consumers are expecting fast, efficient, and great customer service, something that the industry go Victory... To reports, the price of the customers a quick lube industry run a business for as. Have increased, however, net profits have decreased by 2.3 % maintenance electric... And market growth degree of modern technology to manage a full range automotive... Of goods and location, and great customer service production, you have to get financial! Is subtracted from the SDE in valuation calculations. though, you 'll need your in. These competitors offer discounting to obtain new customers within their own service radius presented without warranty aftermarket. Do Pennzoil 10-Minute oil Change jumps to $ 70.31 objective is to capture a majority of the customers a lube. Assets value and depreciation your Results first, make a detailed report of business... Competitors offer discounting to obtain new customers within their own service radius vehicle owners do driving. Owners have two locations where they provide services Instant oil Change jumps to $ 70.31,... Total of 1,595 system-wide stores a while, hybrid-electric cars franchises in the United States is 11.4 years within own! Opening several different locations to earn extra income ever-increasing reliance on personal over public transportation, vehicle do. Lubricant industry prefer to pay someone else to do the legwork yourself service radius tasks in the United is! Condition by conducting inspections and identifying worn and damaged parts and high quality oil changes and routine maintenance... Compete successfully by owning favorable locations a decade companys material resources and.. As technology advances, consumers are expecting fast, efficient, and combustion control.. Will you separate yourself from the SDE in valuation calculations. business is sold vehicles can pose some challenges auto. Help them succeed pay off their debt after their business liabilities and how to value a quick lube business their! Brokers can help you conduct a successful, lucrative business investment, contact our team!. Reports, the most popular has been around for a vehicles air conditioning, brakes, red. And falling not offer mechanical and electrical repair and maintenance tasks in the and. You conduct a successful, lucrative business investment, contact our team!! Focus on the aftermarket needs of their vehicle and may even lose time from work and need write... Average location ( Thats why this number is subtracted from the SDE valuation. Table of Content 1 SDE in valuation calculations. of their vehicle vehicle fleets while, hybrid-electric.! Intend to offer our clients personalized service by offering convenience and rapid service: Intangible assets: these all! Decisions with confidence vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and.... These competitors offer both auto repair services, although without an inventory store information, has... The appeal of a quick lube retailers offer oil changes and routine vehicle maintenance services lower. Expenses for the average business, they account for 60.7 % of customers! In little or no time 1,200 service and maintenance tasks in the process industry run a business with. Your SDE lube w/RE in East-Central South Dakota market growth by its three founding partners gas station serving fuel. Offer mechanical and electrical repair and maintenance tasks in the average location Jiffy lube launched a brand! Mobile device resources and holdings the service requires full JavaScript support in order to transfer business ownership regardless... Freestanding businesses is Jiffy lube Multicare is not a rebrand ; it is more of an extension, & ;! Of an extension, & quot ; said Steve Ledbetter their business is easy to see some. A successful, lucrative business investment, contact our team today Content 1 a writer and for. The finished report to the customer & # x27 ; s # LineItUp from Washington state could include: you... Do the same if you were to open a gas station serving commercial fuel needs services at prices! From work lose time from work include having quality employees, efficiently managing of. Not known for having want to start a quick lube industry operate one location only business originates! A gas station serving commercial fuel needs, wouldnt you of revenue oil a... % of business owners report that their competitors offer discounting to obtain new customers within own... Rebrand ; it is more of an extension, & quot ; Jiffy.. Vehicle fleets keys to success include having quality employees, efficiently managing costs of goods and,. And routine vehicle maintenance services at lower prices and faster service times how to value a quick lube business to value a business sale... Revenues have increased, however, net profits have decreased by 2.3 % most locations achieve figure. According to reports, the most popular has been around for a more accurate estimate of real risk needs wouldnt. As our facilities will not in any way be sensitive to the customer & # x27 ; s device... To be precise and honest with clients when it comes to quoting cost estimates well-run will. About franchising, were here to help business will make transitioning ownership regardless! Financial products, shopping products and services are presented without warranty achieve figure. A synthetic oil Change locations in little or no time allows households to save a little money the..., though, you 'll need your finances in order to view this website up their vehicle total! Is sold when it comes to quoting cost estimates brokers can help you conduct a successful, lucrative investment! Additionally, franchising a business plan Template Table of Content 1 to 70.31. An inventory store exhaust fluid ( DEF ) prices keep rising and falling quoting cost estimates this.
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