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. Consumers are shifting toward premium products within the quick lube industry. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. At Easy On Oil, weve made plans to create a significantly large regular customer base. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. www.ratchetandwrench.com is using a security service for protection against online attacks. Here is a list of our partners. 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. The profitability of individual companies depends on convenient location and good marketing. 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. She is based in New York City. We also plan to leverage an automotive service scheduling software program. It's called Jiffy Lube Multicare. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. The cost of an oil. Industry revenue decreased leading up to the reporting period due to falling prices. 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. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. Just 9% of customers come from a 2-mile radius. 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. It can gather data to . If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. As franchises in the industry go, Victory Lane keeps it simple. Marketing programs at lubes should be powerful and . Our opinions are our own. Entities are ready to back gas stations and those serving commercial fuel needs. 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. If YES, here is a sample Quick Lube business plan template & feasibility report. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. (Business Wire), #14. This offers incredible value to customers who need their cars fixed right away. The visitor industry provides employment for more than 160,000 people. When evaluating offers, please review the financial institutions Terms and Conditions. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. 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. As cars become more complex, even something as simple as changing the oil could require a manual. 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. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. 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. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. 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. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. Specialties: Snappy Lube is your one stop shop for your automotive needs. How will you separate yourself from the competition in a crowded market? EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. If you plan to open an oil change business, you should investigate any quick lube business within your vicinity and determine how they may impact the viability of your investment. About 70% of the revenues generated by the average quick lube location come from oil changes when multiple services are available for consumers. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. 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. Before even thinking about how to value a small business for sale, both sellers and buyers should organize their financial records thats crucial for accurate calculations. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Sally Lauckner is an editor on NerdWallet's small-business team. These similar businesses, often referred to as comparables or "comps," can orient you within the marketplace and provide context about the sector. People will continue to drive regardless of the general economic market. Temple worked as a top sales rep at Chevrolet for over 13 years. This company offers true quick oil change and a new filter. Here is a list of our partners and here's how we make money. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. Here, business assets include anything that adds value to your company. The most successful owners invest in these practices to deliver the best service for their customers. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. 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, 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. 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. KEYWORDS oil change Operations Quick Lube. So, established businesses with stable profitability often use this valuation approach. Electric vehicles impact the future of the automotive repair industry in many different ways. 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. 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. No matter what, applications must be filled out and fees paid. Over my over fifty year career, I have had the privilege of working with many other But buyers arent exempt from this step in the process! Maintaining the website with new trends and advises. The quick lube industry focuses on providing oil changing services for automobiles. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. (If you used EBITDA to value your business, youll use an EBITDA multiple.) Jiffy Lube is a leading provider of automotive preventive maintenance. Among these, only a few are major national chains. (Car Wash Magazine), #4. Too often, making an appointment for an oil change or other routine maintenance takes too long. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. 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. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . 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. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Keep up to date on our new listings and business opportunities. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. 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. Small, regional locations can allow owners to carve out successful markets for their business. We understand that starting a business like ours can be very expensive due to the high cost of equipment. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. 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