You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. 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. Along with hybrids, all-electric cars are taking to the streets across the world. The appeal of a quick lube business is easy to see. Our Mission and Vision Statement 5. In total, Driven Brands has 1,100-plus locations across North America. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. The two PEGs that own Express Oil LLC now have more than 700 stores. Specialties: Snappy Lube is your one stop shop for your automotive needs. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. In order to see how electric cars are impacting the future of the automotive repair industry, it is important to understand how they work in the first place. (Business Wire), #13. I will only use Jason for San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. 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. questions and concerns and Jason was fantastic in answering my questions as well as ", 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. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. However, to keep capital investments low and offer quick building relocation, vehicle lifts can be used rather than basements. Figure 1: VVV's Segment Operating Income Since 2015. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. Later, too, you can use this list to create an overview of your companys value for potential buyers. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. 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. (Car Wash Magazine), #12. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. Businesses in this industry change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. So, established businesses with stable profitability often use this valuation approach. 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. On top of that, he communicated everything in an Sellers will need to follow steps to properly take inventory of your assets. With a national footprint of more than 2,000 franchisee owned service centers across the country, Jiffy Lube offers a range of services from oil changes and tire rotations, to everything in between. As 2018 kicked off, Jiffy Lube launched a new brand extension. So how do we make money? Meredith has worked as a writer and editor for more than a decade. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. LOCATION, LOCATION, LOCATION. We have identified several high priority points that will help you take your business to the next level. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. into the automotive business. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. SHOP STATS . NerdWallet's ratings are determined by our editorial team. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 25 Quick Lube Industry Statistics, Trends & Analysis, 41 Food Truck Industry Statistics, Trends & Analysis, 47 Green Industry Statistics, Trends & Analysis, 49 High Tech Industry Statistics, Trends & Analysis, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. 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. : 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. If YES, here is a sample Quick Lube business plan template & feasibility report. In fact, most quick lube operators choose to franchise for this reason. (Car Wash Magazine), #6. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. 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. 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. In 2018, the industry was valued at $7 billion in the U.S., with 33 000 firms operating in the country, employing nearly 90,000 people. A 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 will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. This segment comprises approximately 25% of our revenue at Easy On Oil. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! Often, sellers keep their business liabilities and pay off their debt after their business is sold. This process is automatic. Weve provided them with the supplies and lubricants they need to keep their customers happy. 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. (Statista), #21. However, this simple method doesn't always provide the full picture of a company's value. I went in for just an oil change and a lube, and I'll be taking all such . Finally, any current debts or future payments, called liabilities, are subtracted from the net income. 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. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. Let's #LineItUp from Washington State! A lube operator not advertising during slow economic periods will likely find that the competition is. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. take status photos of any vehicle part. New Constructs, LLC. Here is a list of our partners and here's how we make money. Performing services on brake systems to coolant flushes. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. 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.). Snappylubeinc.com Established in 1989. Maintains vehicle records by annotating services and repairs. (IBIS World), #3. Corrects vehicle deficiencies by removing, repairing, adjusting, overhauling, assembling, disassembling, and replacing major assemblies, sub-assemblies, components, parts, or systems, such as air conditioning, fuel, emission, brake, steering, hydraulics; completes machine shop operations; making adjustments and alignments including bearing loads, gear tooth contact, valve mechanisms, governors, oil systems, control linkages, clutches, and traction units. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. For the average business, they account for 60.7% of total expenses. Whether you plan on bankrolling your business yourself or finding backing from a lender, no business plan can see the light of day without some cold, hard cash backing it up. Most locations operate two to five bays in a drive-through building, and many use basement construction so that oil can be changed below while other services are being completed above. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. unconditionally recommend Mike and his team. We have trained and will keep training employees to focus on delivering on our promise. You have a loyal customer base. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. 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. Our goal is to capture a majority of the market in little or no time. 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. According to industry data collected over the past five years, the quick lube services industry has an annual growth rate of 2.4% and a combined annual revenue of $5.5 billion. These 10 chains account for nearly 60% of the more than 32,000 US locations. You might think that you can't actually distill the value of your entire business to an exact number and, sure, in a way it's a bit of an estimate. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. Executive Summary 3. 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