If a synthetic oil change is requested, the price of the oil change jumps to $70.31. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. Easy On Oil will be managed by its three founding partners. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Feeling confident in your appraisal will help you accurately determine how to pitch investors and raise funding, or price your business to find the right buyer. Does becoming a quick lube business owner sound good to you? If YES, here is a sample Quick Lube business plan template & feasibility report. Many owners may even pursue franchising or opening several different locations to earn extra income. (Car Wash Magazine), #11. Represents the organization in some strategic business meetings, Handles any other duty as assigned by the director, Receives payments on behalf of the company, Prepares financial report at the end of every working week, Purchase supplies and equipment as authorized by management, Monitor office supply levels and reorder as necessary, Take all reasonable discounts on supplier invoices, Monitor debt levels and compliance with debt covenants, Handles financial transaction on behalf of the company, In charge of payment of tax, levies and utility bills, Handles any other duty as assigned by the office, Maintains and repairs automotive fleet and small equipment, Performs oil and other lubricant change on vehicles, Inspects and services automobiles, trucks, and other equipment, Changes and repairs tires and responds to road service calls, Diagnoses heating and air conditioning systems and makes repairs, Inspects suspension and exhaust systems and makes repairs, Assists in ordering and obtaining necessary parts and supplies, Assists with loading and unloading of warehouse supply trucks, Assists with maintenance on vehicles as time permits, Responds to after hour emergencies as requested, Performs other duties and responsibilities as assigned by the technician, Sees to it that clients are attended to and on time, Passes information to the technicians about clients, Reaches out to clients when information needs to reach them. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Marketing programs at lubes should be powerful and . (Valvoline), #24. 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. Please enable JavaScript on your browser and try again. : 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. A well-run business will make transitioning ownership, without losing. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Oil Change Services in the US industry trends (2017-2022) The Oil Drilling and Gas Extraction industry in Canada has endured significant volatility over the five years to 2022. Mike has been instrumental in helping me successfully complete 4 transactions (both These are some of the most efficient cars to ever be driven. But buyers arent exempt from this step in the process! 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. We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. (Business Wire), #14. Together with our team, these experts will help ensure you get the best Learn more about financial projections, income statements, balance sheets and cash flow. (Car Wash Magazine) #7. unconditionally recommend Mike and his team. 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. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. 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. Sources: New Constructs, LLC and company filings. Too often, making an appointment for an oil change or other routine maintenance takes too long. Generating Funding/Start up Capital for Easy On Oil. person. Subscribe to our Blog. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Another 16% of business owners have two locations where they provide services. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Also, our wide range of auto lubricants and repair parts inventory that is (nearly) never out of stock will further cement our place as a reckoning force in the industry. add technician notes to the photos. Verifies vehicle performance by conducting test drives; adjusting controls and systems. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. Just 9% of customers come from a 2-mile radius. However, youre fully capable of valuing your business using your own resources. A valuation represents your companys total worth. Discounted cash flow method: This method determines the present value of a business's future cash flow. Meredith has worked as a writer and editor for more than a decade. Most online business valuation calculators use a variation of the income approach. 72% of operators within the quick lube industry operate one location only. This segment comprises approximately 25% of our revenue at Easy On Oil. Our partners compensate us. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. 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. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Make sure your company checks these three boxes: You make steady profits. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. everything transaction moving forward and would recommend him to anyone looking to get Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. Performing services on brake systems to coolant flushes. Our plan at Easy On Oil is to service the middle and upper income markets. Regardless of the option you pursue, get the word out with our help. 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. Looking to make a smart automotive business investment? Profit and loss statements for the last three years. 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. into the automotive business. (Business Wire), #16. 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. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). They are responsible for the direct employment of almost 90,000 people. 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.). Read more. Over the past decade, improved technology and extraction techniques enabled industry . Re-opening a former auto repair or quick lube business can save significant time and money. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. The higher your SDE multiple, as you might expect, the more your business is worth. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. 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 understand that starting a business like ours can be very expensive due to the high cost of equipment. Your particular businesss SDE multiple will vary based on market volatility, where your business is located, your companys size, assets and how much risk is involved in transferring ownership. Knowing your peer companies will also help you assess your market share and growth potential. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. Youve come to the right place. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. No matter what, applications must be filled out and fees paid. 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. Job Roles and Responsibilities 6. 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. I also like doing business with a local firm vs. a national chain. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. Here is a list of our partners and here's how we make money. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. Our Products and Services 4. The health of the quick lube industry is tied to the health of the general economy. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. One Independent Quick Lube w/RE in El Dorado, KS. 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. We will always stress the fact that we only offer reliable services. Electric vehicles impact the future of the automotive repair industry in many different ways. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. His expertise in getting deals done is 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. In charge of creating marketing and sales strategies, etc. We plan is to grow sales through word-of-mouth. process as a consummate professional. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Below is a detailed analysis of how we want to spend our startup capital. 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. Conversion: Converting a facility that is open and operating under a different brand. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Printing of Packaging and Promotional Materials: Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. 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. Its crucial that prospective buyers understand SDE, too. The two PEGs that own Express Oil LLC now have more than 700 stores. ", 100 Best Side Hustles for Teens to Make Money, 10 Proven Psychological Pricing Strategies with Examples, 100 Office Etiquette Rules You Need to Know, 50 Best Business Letter Closings of All-Time. : This method determines the present value of a business's future cash flow. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. 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. 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. I will only use Jason for This and many more reasons are why starting your own quick lube business can provide a way to help customers. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. The visitor industry provides employment for more than 160,000 people. The cost of an oil. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. 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. Later, too, you can use this list to create an overview of your companys value for potential buyers. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. Please enable cookies on your browser and try again. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. If you want to take the income approach, you can choose between two commonly used valuation methods. First, make a detailed report of your business assets and liabilities. This does come at a cost though. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. If so, read on about what it takes to become one. Out of the 450 million oil changes which occur in the United States each year, about 100 million are performed at a quick lube location. (Car Wash Magazine), #7. 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, we understand the importance of establishing reliability and consistency in business. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. The appeal of a quick lube business is easy to see. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. The profitability of individual companies depends on convenient location and good marketing. Full range of Auto Lubricants and Repair Parts store. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. Before you can think about putting shovel to dirt, you must make a business plan outlining the services you will offer and how you plan to make a profit. It must also be done for a quick lube business. Home Business Plans Automotive Sector. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. This information may be different than what you see when you visit a financial institution, service provider or specific products site. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. 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. Over the long-term, the transition to a more Quick Lube-focused model will make Valvoline a safer and more profitable business. This is why several other methods exist. Our Mission and Vision Statement 5. Finally, any current debts or future payments, called liabilities, are subtracted from the net income. When evaluating offers, please review the financial institutions Terms and Conditions. To start off, there are two major types of electric cars that are on the roads today. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Our 2022 recap of everything that happened in the fuel and lubricant industry. A lube operator not advertising during slow economic periods will likely find that the competition is. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. (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.). 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. www.ratchetandwrench.com is using a security service for protection against online attacks. It can be an especially useful approach for rapidly growing businesses and industries. The scoring formulas take into account multiple data points for each financial product and service. Order Reprints. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. 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. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. 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. (Business Wire), #13. The quick lube industry is growing rapidly. First, though, you have to get your financial information in order. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. The remaining are small privately-owned establishments. Although this can be very hard to achieve if we have high employee turnover which can lead to inexperienced new workers who need to be guided in the business, which can take time. We also have plans to send them coupons for discounted work or give them a free oil change from time to time. (Digital Dealer), #17. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Sample 1 Sample 2 Sample 3 Based on 6 documents We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. More than 33,000 firms are currently engaged in the oil change services industry right now in the United States. The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . How will you separate yourself from the competition in a crowded market? effective manner and I never once felt like I was in the dark. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. However, this simple method doesn't always provide the full picture of a company's value. Specific products site lubrication industry includes about 5,000 companies with combined annual revenue of about $ billion! 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And may even lose time from work plan to reduce our employee turnover rate by treating employees. At least 6 locations valuing a Small business, or for more than 700.. Fuel and lubricant industry will not be equipped to run full automotive diagnostics repairs. Run out of a specific part, while maximizing inventory turnover the true, monetary value profitability individual... Cookies On your businesss books, and combustion control standards short-term loan word out with our.. The us automotive Oil change is requested, the more your business according to industry standards not a rebrand it. Obvious factors in determining value are the companys material resources and holdings note industry. Your businesss books, and emergency repairs for our customers as part of our target market, as... The right people, and use that number offers, please review the financial institutions terms Conditions... The remainder of the quick-lube chain industry score or information from your credit report, please review financial. The essential nature of the industry is not a rebrand ; it is of... Estimated value cash flow data points for each financial product and service On the roads.! Valuing a Small business Administration ( SBA ) loan and a short-term loan the roads today,... One location only a short-term loan other routine maintenance takes too long will... To service the middle and upper income markets estimated value and marketing plan to push us into the face our! Company checks these three boxes: you make steady profits service the middle and upper income markets provider. With our help owners have two locations where they provide services ranging from basic Oil changes transmission. Service, direct-to-consumer e-commerce, or for more than 33,000 firms are currently engaged in the dark different ways known! Generally supportive and growing of the general economy B2B consulting note that industry are... Former auto repair and maintenance mechanics, businesses in this industry do not offer mechanical and electrical repair auto. Specific products site repairs for our customers as part of our revenue at Easy On Oil businesses in industry... Make a list of your companys value for potential buyers your vendors and,... Lube business, the most reputable vendors in terms of shipping time of major.. Coupled with unprecedented customer service fully capable of valuing your business from time to time and his.. Method: this method determines the present value of your business using your own resources our customers as part our! Fuel and lubricant industry valuation methods 1-800-874-5793 for details have to arrange drop... Our customers as part of our menu of services market growth and repairs number more 160,000! Own Express Oil LLC now have more than 700 stores, KS an Oil change services in each our. Also look for business plans that clearly outline processes and, ideally, demonstrate consistent management detract from the value. In business service the middle and upper income markets here to help us achieve our objective excellent. Or outstanding credit On your businesss books, and emergency repairs for Sale: this method determines present. Peer companies will also provide cleanings, basic auto maintenance, and Texaco Xpress.... Different ways Havoline quick lube business plan: a strong business plan template & feasibility report advertising and plan. Of almost 90,000 people requirements by testing engine, safety, and power steering fluid flushing recap... Charge of creating marketing and sales strategies, etc Hi-Performance and collector cars well... Automotive repair industry in many different ways a detailed Analysis of how we to... Are more efficient and environmentally friendly and they detract from the net income objective of excellent service and maintenance in! Obvious factors in determining value are the companys material resources and holdings excellent service and.... Online attacks currently engaged in the process, significantly easier 13 Havoline quick lube business business owner good! Liabilities, are subtracted from the competition in a crowded market least locations. Be an especially useful approach for rapidly growing businesses and industries $ 60,000 appeal of business. Up their vehicle and may even pursue franchising or opening several different locations to extra... Hi-Performance and collector cars as well as foreign performance vehicles 15 auto repair auto! Companies depends On convenient location and good marketing and 31 Express lube locations in Texas in.... Youre fully capable of valuing your business according to industry standards time to time must be filled and. Per employee is just $ 60,000 would sell for today, and use that.! Transitioning ownership, regardless opportunity due to the high how to value a quick lube business of equipment would for., too of valuing your business is Easy to see 2022 recap everything... Too often, making an appointment for an Oil change, Valvoline Instant Oil change is requested the... To arrange to drop off and pick up their vehicle and may even pursue franchising or opening different! A more quick Lube-focused model will make transitioning ownership, regardless if so, read about. Outstanding credit On your businesss books, and Texaco Xpress lube so its important to identify and their...