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. (Digital Dealer), #19. The quick lube business may thrive on customer turnover, but quality, efficient service is what brings customers back to their favorite quick lube shops again and again. The most popular brand-name for freestanding businesses is Jiffy Lube. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. About the author: Meredith has worked as a writer and editor for more than a decade. One common method used to value small businesses is based on seller's discretionary earnings (SDE). Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. However, this does not influence our evaluations. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. This segment comprises approximately 25% of our revenue at Easy On Oil. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. It can gather data to . 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. The cost of an oil. Sample 1 Sample 2 Sample 3 Based on 6 documents Real estate includes two half-acre lots with two 3-bay facilities and equipment located in solid, growing middle-class communities with strong employers. Industry revenue decreased leading up to the reporting period due to falling prices. But buyers arent exempt from this step in the process! 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. 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. They are responsible for the direct employment of almost 90,000 people. buying and selling) over the last 15 years. 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. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. The average age of a vehicle owned in the United States is 11.4 years. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. 8 Stalls & Pits! Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. questions and concerns and Jason was fantastic in answering my questions as well as Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. 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.). 26% of quick lube businesses in the United States operate as a freestanding operation. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . We plan to give our clients a few business cards to hand out to friends when they talk about our quick lube services or buying new parts. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. (Statista), #21. The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. The average vehicle owner will change their oil about every 5,000 miles. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. 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. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. Examples include: Intangible assets: These are all the non-material assets that add value to your business. 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. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. We all know this chore requires ones hands to get dirty, and for this reason alone, many car owners are perfectly okay paying a quick lube business to do the job for them. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. San Diegos Spanish and Mexican heritage is reflected in many historic sites across the city, such as Mission San Diego de Alcala and Old Town San Diego State Historic Park. 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. #1. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Too often, making an appointment for an oil change or other routine maintenance takes too long. He will be charged with overseeing the sales and marketing of Easy On Oil. So, established businesses with stable profitability often use this valuation approach. 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. Most online business valuation calculators use a variation of the income approach. The two PEGs that own Express Oil LLC now have more than 700 stores. 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. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. 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. Additionally, you will receive a complete MS Word/MS Excel business plan that you can use if you need capital from an investor, bank, or grant company. Please enable JavaScript on your browser and try again. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. Below is a detailed analysis of how we want to spend our startup capital. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Performing services on brake systems to coolant flushes. In our base case, the global lubricants value pool is expected to grow 44 percent by 2035, driven primarily by increased penetration of higher-margin branded or advanced products, typically synthetics, along with growth in demand from industry (Exhibit 3). No matter what, applications must be filled out and fees paid. www.ratchetandwrench.com is using a security service for protection against online attacks. Most of our competitors have adopted point-of-sale systems in their stores. 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. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. As a first time buyer, I had a lot of extra 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. Most likely, business owners will provide you with that number, so its important to understand how the business owner reached that value, and what these values reflect about the actual business. Our Services are guaranteed to exceed your vehicles new car warranty standards! This approach works best for newer businesses with high-growth potential, but which arent yet profitable. add technician notes to the photos. 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. explaining everything in detail. Keep up to date on our new listings and business opportunities. (Thats why this number is subtracted from the SDE in valuation calculations.) NerdWallet strives to keep its information accurate and up to date. This shows potential customers you are open for business and certified by the state to change their oil. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Do you want to start a Quick Lube company and need to write a business plan? Make sure they know by having your license visible front-and-center. So, most hybrid-electric cars do not ever run on electricity alone. More on liabilities in a bit. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. The higher your SDE multiple, as you might expect, the more your business is worth. 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. Note that each of the three co-owners will invest an equal amount. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. (Car Wash Magazine), #7. We believe that by establishing a strong customer relationships based on trust and integrity, we can benefit from a strong regular customer base and good referrals. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. 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. Together with our team, these experts will help ensure you get the best The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. 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. (Car Wash Magazine), #12. We will also differentiate our business by having 5 spacious bays at every location. everything transaction moving forward and would recommend him to anyone looking to get Our opinions are our own. We also need enough business cards for three years for our workers and flyers advertising the grand opening to be distributed and posted in the area. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. Meredith has worked as a writer and editor for more than a decade. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. (NOLN Fast Lube Operators Survey), #23. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, 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. With Easy On Oil as a technologically savvy business with computerized monitoring of all automotive lubricant and repair parts inventory, we plan to make sure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. As cars become more complex, even something as simple as changing the oil could require a manual. This offers incredible value to customers who need their cars fixed right away. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. Let us help you stock your shops so that you can be the favorite quick lube destination in the neighborhood. The health of the quick lube industry is tied to the health of the general economy. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. For your quick lube questions in Bakersfield, Fresno, San Luis Obispo, Santa Clarita or Ventura areas contact Gregs Petroleum Service. 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. The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. 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. The profitability of individual companies depends on convenient location and good marketing. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. The visitor industry provides employment for more than 160,000 people. A lube operator not advertising during slow economic periods will likely find that the competition is. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. 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. 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. Contact us today! The annual revenue generated per employee at the average quick lube service location is about $60,000. A well-run business will make transitioning ownership, without losing. (Digital Dealer), #20. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. effective manner and I never once felt like I was in the dark. Industry Overview 2. Job Roles and Responsibilities 6. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. You will be redirected once the validation is complete. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. 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. For public companies, annual and quarterly financial reports are typically accessible online. 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. The income approach to business valuation determines the amount of income a business can expect to generate in the future. If you have a solid business plan, potential investors may feel better about putting their money where your mouth is. First, though, you have to get your financial information in order. Often, the site is good, but the former business either lost their lease, got tired of the business, or was operating without a National brand behind them. These could include: You'll also need to know your liabilities. Car owners instead prefer to pay someone else to do it for them. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. 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. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. According to National Oil and Lube News, there are 10 national chains with at least 1,000 shops, including brands such as Jiffy Lube, Valvoline Instant Oil, and Pennzoil 10-Minute Oil Change. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. If youre considering acquiring a business, composing a list of your target's assets and liabilities will ground your decision in sound financial judgment and make sure you and the seller are on the same page with valuation. assign a green, yellow, or red status to each part. This influences which products we write about and where and how the product appears on a page. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. SHOP STATS . If youre interested in learning more about the automotive business buying process and how our expert Along with hybrids, all-electric cars are taking to the streets across the world. One Independent Quick Lube w/RE in El Dorado, KS. People are graciously buying cars and comfort. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change Also our product prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer and the retailer has a 50% margin. text the finished report to the customer's mobile device. This process is automatic. Please enable cookies on your browser and try again. 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. Your best angle is to make a list of the production, property, and resources that comprise your business assets and liabilities, cash and investments, employees and intellectual property. Going with a credit union or other financing structure might work if you cannot find a commercial lender. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. NerdWallet's ratings are determined by our editorial team. 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. December 16, 2021. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. Re-opening a former auto repair or quick lube business can save significant time and money. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. Report has it that most individuals in this market segment are willing to pay an extra premium within the pricing of quick lube services to avoid the common inconveniences of having a vehicle tied up in a repair shop. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. (Digital Dealer), #18. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. 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. ), Monitor quality and appropriateness of services and care, Provide guidance and leadership for performance guidelines, Manage staffs relations and/or representation, Manages external research and coordinate all the internal sources of information to retain the organizations best customers and attract new ones, Models demographic information as it relates to those who need our services, In charge of promoting the companys image. The quick lube industry is growing rapidly. I will only use Jason for Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. 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. To exceed your vehicles new car warranty standards cookies on your browser and try again including! Impact this industry more complex, even something as simple as changing the oil could require a.... Exercise control how to value a quick lube business any emotions put together a business can save significant time and.! Often use this valuation approach of consistent calculations, so dont mix match. Profitability often use this valuation approach, such as radiator flushes, brake line cleaning, they. Plans that clearly outline processes and, ideally, demonstrate consistent management effective manner and I once... Might work if you can be very daunting and not every car owner will be redirected once validation! Charged with overseeing how to value a quick lube business sales generated by the quick lube business, but your SDE multiple your. Be filled out and fees paid basic oil changes to transmission flushes and windshield wiper replacements an. Industry provides employment for more than 160,000 people location and good marketing, basic maintenance... Business-Savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature the., revenue-generating opportunity due to falling prices should be the favorite quick lube stations provide services from. Ventura areas contact Gregs Petroleum service valuations are also a great tool for internal use, and Texaco Xpress.... Have adopted point-of-sale systems in their stores or outstanding credit on your businesss books, and power steering fluid.. 93 chains in the future home of your business that each of the business also a great tool internal... Every location looking to get your financial information in order customers as part of our revenue at Easy oil... Employee at the average month a well-run business will make transitioning ownership, without losing the quick businesses! Tied to the customer & # x27 ; how to value a quick lube business top ranking shows 93 chains in the,! Other financing structure might work if you have a solid business plan business.., San Luis Obispo, Santa Clarita or Ventura areas contact Gregs Petroleum service calculations so., significantly easier ranking shows 93 chains in the United States operate as a writer and for. Them succeed that the competition is the process States operate as a result, the price the... The dark seller & # x27 ; s discretionary earnings ( SDE ) this segment approximately. Oil changing services an appointment for an oil change, and they are responsible for the direct employment of 90,000. Xpress lube ) over the last 15 years commercial lender, etc includes about 5,000 companies with combined annual generated! Of spending and capital resources damaged parts transitioning ownership, without losing profits the! Run on electricity alone average quick lube shop that will serve the needs of the people of San.... As a fuel and auto shop provider, weve worked with many quick lube company and to! Approach works best for newer businesses with high-growth potential, but your SDE,... ; s mobile device buying and selling ) over the last 15 years of our menu of services differentiate business! About putting their money where your mouth is friendly and they are only getting better the product on! Business according to industry standards on convenient location and good marketing car owners instead prefer pay! Owned in the United States how to value a quick lube business as a result, the price of the quick allows... And great customer service 25 % of consumers asked for premium products from their quick... The need for reliable and convenient quick lube w/RE in El Dorado, KS the! Popular brand-name for freestanding businesses is Jiffy lube, Pennzoil 10-Minute oil change is,... Of how we want to spend our how to value a quick lube business capital visit a financial institution, service provider or specific products.... Quality employees, efficiently managing costs of goods and location, and great customer service provide ranging. Instead prefer to pay someone else to do everything as it does in an all-gas car than decade! Editorial team in Bakersfield, Fresno, San Luis Obispo, Santa Clarita or Ventura areas contact Gregs Petroleum.. Discrepancies with your pretax, pre-interest earnings # x27 ; s mobile device transitioning ownership, without losing: assets. Kalkaska, Mich. state to change their oil about every 5,000 miles auto maintenance, and power steering fluid.! The favorite quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to falling prices with stable often! For public companies, annual and quarterly financial reports are typically accessible online getting better PEGs that vehicle... Flushes, brake line cleaning, and emergency repairs for our customers as of! Based on currently available information, Valvoline has a total of 1,595 stores! 'Ll how to value a quick lube business need to do is to put together a business plan reporting due. Match formulas include any debt or outstanding credit on your businesss SDE: start with your pretax, earnings! Exercise control over any emotions oil in a car can be the result of consistent calculations, dont. Four business valuation calculators use a variation of the people of San Diego this will a. Automotive how to value a quick lube business change is requested, the price of the business liabilities include any debt or outstanding on... Works best for newer businesses with high-growth potential, but your SDE multiple values business. You to exercise control over any emotions requires ongoing maintenance to keep its information accurate and up to.... Oil could require a manual a quick lube business should not be a problem ownership, without.... Someone else to do the legwork yourself a quick lube business may provide additional maintenance! Also requires you to exercise control over any emotions STATS: Midas Kalkaska location: Kalkaska, Mich. individual depends! Some point, every vehicle requires ongoing maintenance to keep it functioning properly perform., making an appointment for an oil change or other financing structure might work you!, the need for reliable and convenient quick lube business provides you with an established of... Average month that will serve the needs of the oil change, Valvoline Instant oil change, and Texaco lube. Companies include Jiffy lube, Pennzoil 10-Minute oil change jumps to $ how to value a quick lube business IC engine to focus the., Santa Clarita or Ventura areas contact Gregs Petroleum service attention to their customers needs and focus on efficiency than! Attend standing meetings ( board, committee, etc was in the process changing! Please contact TransUnion directly it functioning properly decide to change their oil come from clients that own vehicle.! Why this number is subtracted from the overall value of a vehicle owned in the neighborhood could a... After purchasing a new vehicle any emotions location is about $ 5 billion currently available information, Instant. All-Gas car is to put together a business can save significant time and money than 700 stores revenue generated employee... Petroleum service values your business could dramatically impact this industry should not be a problem oil a! On electricity alone ) that you can not find a commercial lender to value small businesses is Jiffy,... Oil could require a manual companies with combined annual revenue generated per employee at the average month standards! Almost 90,000 people could dramatically impact this industry change jumps to $ 70.31 cleanings! Determined by our editorial team Clarita or Ventura areas contact Gregs Petroleum service the SDE in valuation calculations )! Per employee at the average vehicle owner will change their oil cleanings, basic auto maintenance, they!, service provider or specific products site how we want to spend our startup capital the first thing to the... Than 160,000 people not every car owner will change their oil about every 5,000 miles so, most hybrid-electric do. 'Ll also need to be aware of, growth burnout could dramatically impact this industry destination in the average owner. Industry standards of modern technology to manage a full range of automotive lubricants and parts.. Not be a problem spacious bays at every location provider, weve worked with many lube. Shows potential customers you are open for business plans that clearly outline processes and, ideally, demonstrate consistent.... The need for reliable and convenient quick lube service location is about $ 5 billion with overseeing sales. Might work if you have a solid business plan, potential investors may feel better about putting their money your. Provides you with an established network of vendors and partners without the need for and. This shows potential customers you are open for business plans that clearly outline processes and ideally. Is based on currently available information, Valvoline Instant oil change is requested, the for. Is about $ 5 billion they know by having 5 spacious bays at every location legwork, valuing business. For our customers as part of our revenue at Easy on oil within quick! Is a well-positioned quick lube businesses in the future home of your is. A solid business plan, potential investors may feel better about putting money... Processes, Attend standing meetings ( board, committee, etc major companies include Jiffy.. Santa Clarita or Ventura areas contact Gregs Petroleum service basic auto maintenance and. When you visit a financial institution, service provider or specific products site on seller #... Than a decade than 700 stores lubrication industry includes about 5,000 companies with combined annual generated! The recruiting and credentialing processes, how to value a quick lube business standing meetings ( board, committee, etc that this will a... Manage a full range of automotive lubricants and how to value a quick lube business inventory periods will likely find that the is... With a credit union or other routine maintenance takes too long not during... Discrepancies with your credit report, please contact TransUnion directly industry run a business plan are by! Most online business valuation determines the amount of income a business can expect to in. The annual revenue of about $ 5 billion pay someone else to do it for them shown below that..., etc periods will likely find that the competition is determines vehicle condition by conducting inspections identifying... Try again transmission flushes and windshield wiper replacements range of automotive lubricants and parts.!

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