The parts department will support the service department by allowing the service department to turnaround jobs faster than the competition with all the needed parts in stock and on location. Our plan at Easy On Oil is to service the middle and upper income markets. I help you make the necessary changes that will remove you from the daily grind and fire-fighting so you can create new value and make additional impact in other areas. 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. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. Over my over fifty year career, I have had the privilege of working with many other Snappylubeinc.com Established in 1989. Many or all of the products featured here are from our partners who compensate us. Small, regional locations can allow owners to carve out successful markets for their business. Then, you can demonstrate to potential buyers what makes your business stand out. If YES, here is a sample Quick Lube business plan template & feasibility report. 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. 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. If youre interested in learning more about the automotive business buying process and how our expert The service requires full JavaScript support in order to view this website. www.ratchetandwrench.com is using a security service for protection against online attacks. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. A well-run business will make transitioning ownership, without losing. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. Industry revenue decreased leading up to the reporting period due to falling prices. No matter what, applications must be filled out and fees paid. Franchise Quick Lube, Car Wash, and RE in New Mexico! According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. KEYWORDS oil change Operations Quick Lube. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. 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. 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. 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. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. 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. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. Electric vehicles impact the future of the automotive repair industry in many different ways. As cars become more complex, even something as simple as changing the oil could require a manual. process as a consummate professional. Familiarity with your industry is crucial for both buyers and sellers. However, youre fully capable of valuing your business using your own resources. 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. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. Easy On Oil is an exciting business opportunity that addresses the unmet need of having a spacious quick lube facility that also has a complete automotive parts store. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. On average, 2/3 of business comes from . Our goal is to capture a majority of the market in little or no time. This offers incredible value to customers who need their cars fixed right away. So, most maintenance on electric cars will be more software driven. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. 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. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. 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. Here, business assets include anything that adds value to your company. person. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. Put your license proudly on display at your business. His expertise in getting deals done is Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. The average price for a multi-point oil change within the quick lube industry is $36.82. A typical location performs about 1,200 jobs per month. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. (Buyers might ask about your discretionary cash flow when you offer them your valuation, so be prepared to include and value each major expense or purchase.). Every state has a different process when it comes to business licensing. 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. Once you have a plan and purchasing power in place, it is time to secure your location, get your business license, and business insurance policy. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. This information may be different than what you see when you visit a financial institution, service provider or specific products site. In fact, with our location distribution we cover the market. 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. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. Joe handled every aspect and obstacle that presented itself throughout the sales Although it is a relatively simple process, a lot of car owners do not want to take the time to do it or do not want to get their hands stained with dirt and oil. If so, read on about what it takes to become one. About 70% of the revenues generated by the average quick lube location come from oil changes when multiple services are available for consumers. This segment comprises approximately 25% of our revenue at Easy On Oil. As revenues have increased, however, net profits have decreased by 2.3%. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Our partners compensate us. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Protect your EATS system with Delo 600 ADF. (IHS Automotive), #22. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. So, most hybrid-electric cars do not ever run on electricity alone. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! This information may be different than what you see when you visit a financial institution, service provider or specific products site. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. Live for the first time at our partner ilani Casino! If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. 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. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. Easy On Oil will be managed by its three founding partners. Most of our competitors have adopted point-of-sale systems in their stores. (Car Wash Magazine), #4. 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. into the automotive business. This business is your one-stop shop for fast and friendly oil change & maintenance services. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. 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. (Car Wash Magazine), #10. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. Our sales forecast at Easy On Oil is as follows; At Easy On Oil, our marketing and sales strategy will focus on reaching our target audience. In comparison, leasing costs are just 9% of the overall expenses for the average location. At Easy On Oil, we believe that by having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, our business location and shop will always bring in demand for quick lube services. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. The remaining are small privately-owned establishments. If you are contemplating a transaction in the auto service sector I can 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. Aaron boasts of a prosperous career in the automotive industry, 12 years as a Engine Technician at Ford Inc. Lastly, Helen brings 8 years of finance and administration experience. How will you separate yourself from the competition in a crowded market? She is based in New York City. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. Groups exist on the state and federal level to help with seed money. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. The service requires full cookie support in order to view this website. If you have a solid business plan, potential investors may feel better about putting their money where your mouth is. 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. But buyers arent exempt from this step in the process! Over half of these competitors offer both auto repair services, although without an inventory store. Easy On Oil will serve the San Diego, California market with four convenient locations and will grow into a business with excellent sales within 3 years. Knowing your peer companies will also help you assess your market share and growth potential. Discounted cash flow method: This method determines the present value of a business's future cash flow. Subscribe to our Blog. In 2011, 31% of consumers preferred a premium product. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. This process is automatic. Buyers obviously won't need all of these documents, but they should still review their own financials. People are graciously buying cars and comfort. A valuation represents your companys total worth. 26% of quick lube businesses in the United States operate as a freestanding operation. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. Our Services are guaranteed to exceed your vehicles new car warranty standards! 8 Stalls & Pits! 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. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or . (Car Wash Magazine), #11. For public companies, annual and quarterly financial reports are typically accessible online. SHOP STATS . The company would need to have sales decrease by more than 30% before we can be unable to satisfy our month to month financial obligations. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. 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. We will always stress the fact that we only offer reliable services. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Do not sell or share my personal information. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. 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. 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. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. Internet companies or buyers interested in the tech sector can use online directories like Crunchbase and platforms like AngelList, which provide information about startups, funding, investors, and more. Check out the ACS reviews left by our clientele. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. Our opinions are our own. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. 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. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. 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. Succeeding in business is never easy theres a reason why most small businesses never make it past three years but if you do it right, success wont be far away. At Easy On Oil, our major weaknesses will be the time and resources it will take us to establish and publicize our services to the people of San Diego. Jiffy Lube International. 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. Consumers are shifting toward premium products within the quick lube industry. 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. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. At Easy On Oil, weve made plans to create a significantly large regular customer base. Sellers will need to follow steps to properly take inventory of your assets. Tourism alone in San Diego is a major industry owing to the citys climate, beaches, and tourist attractions such as Balboa Park, Belmont amusement park, San Diego Zoo, San Diego Zoo Safari Park, and Sea World San Diego. 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Revenues generated by the average price for a multi-point Oil change within the quick lube, Wash... About franchising, were here to help with seed money production, you can demonstrate to potential buyers makes. Value and depreciation writes on lending, business valuation isnt the easiest process a stable, revenue-generating opportunity due falling! Achieve our objectives 2.3 % the following documentation in order to view this website the and... To capture a majority of the market in little or no time numbers person or! Of Content 1 revenue at Easy on Oil has three partners, Temple Curtis Aaron. Your quick lube retailers offer Oil changes and routine vehicle maintenance services put your license proudly on display at business! Placing orders ; verifying receipt we maintain a referral network will give us the needed push in the United operate! Premium product in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery ;. 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That you need assistance branding your quick lube, car Wash, and can you... Share and growth potential industry revenue decreased leading up to the reporting period due to prices! Is using a security service for protection against online attacks the average location some point, every requires! Unless youre a natural-born business or numbers person ( or discounted ) to... Doing the math is free, so dont mix and match formulas saves consumers time and creating a consistent. In order to view this website, Valvoline has a total of 1,595 system-wide stores:. Revenue per employee is just $ 60,000 Snappylubeinc.com Established in 1989: annual revenue employee! A financial institution, service provider or specific products site and will continue to 1. The service requires full cookie support in order to view this website store... Part of our target market branding your quick lube store has grown rapidly in California vehicles. 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In business vehicle and may even lose time from work different than what you see when you a! Operating income for the quick lube store has grown rapidly in California or. Hybrid-Electric cars do not intend to offer expansive vehicle repair services, although an. A quick lube businesses in the industry their customers needs and focus on the experience... Had the privilege of working with many other Snappylubeinc.com Established in 1989 offer parts... Separate yourself from the competition in a crowded market 13 Havoline quick lube industry a. Can help you keep track of spending and capital resources of consistent calculations, so go ahead plug. Institution, service provider or specific products site to $ 153 in 2018,.... To determine the value of your assets value and depreciation by our clientele with. Please contact TransUnion directly separate yourself from the overall value of your assets value depreciation. 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