(Car Wash Magazine), #10. Another 16% of business owners have two locations where they provide services. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. Temple worked as a top sales rep at Chevrolet for over 13 years. Learn more about financial projections, income statements, balance sheets and cash flow. As cars become more complex, even something as simple as changing the oil could require a manual. The appeal of a quick lube business is easy to see. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. There are two asset categories, and theyre weighted differently when calculating a businesss total value: Tangible assets: When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. Groups exist on the state and federal level to help with seed money. With an estimated population of 1,425,976 as of July 1, 2018, San Diego is the eighth-largest city in the united states and second-largest in California. 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. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. 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. (Digital Dealer), #18. Meredith has worked as a writer and editor for more than a decade. The profitability of individual companies depends on convenient location and good marketing. Our partners cannot pay us to guarantee favorable reviews of their products or services. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Profit and loss statements for the last three years. 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. It must also be done for a quick lube business. In total, Driven Brands has 1,100-plus locations across North America. Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. : This method determines the present value of a business's future cash flow. We also have plans to send them coupons for discounted work or give them a free oil change from time to time. 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. As a first time buyer, I had a lot of extra If so, read on about what it takes to become one. 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. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. 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. 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. How will you separate yourself from the competition in a crowded market? everything transaction moving forward and would recommend him to anyone looking to get comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. 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. 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. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. (Business Wire), #13. At Easy On Oil, we will differentiate ourselves by not only offering oil change or other automotive maintenance services, but by also providing customers with a stocked lubricant and parts store. Conversion: Converting a facility that is open and operating under a different brand. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. The average price for a multi-point oil change within the quick lube industry is $36.82. Most locations achieve this figure with just 2-5 service bays available to them. 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. Protect your EATS system with Delo 600 ADF. One common method used to value small businesses is based on seller's discretionary earnings (SDE). Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Oil changing services in the United States is an industry valued at $7 billion in the United States. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Each uses a different aspect or variable of a business to calculate its numerical value either a businesss income, assets, or using market data on similar companies. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Make sure your company checks these three boxes: You make steady profits. Mike has been instrumental in helping me successfully complete 4 transactions (both 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. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. Sources: New Constructs, LLC and company filings. 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. To reach our local customer base, we will employ a marketing manager. Order Reprints. In fact, most quick lube operators choose to franchise for this reason. (Digital Dealer), #20. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. 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. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. Live for the first time at our partner ilani Casino! Short overview of your business or personal finances. 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. 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. Businesses in this industry are very important to the general automotive industry. If YES, here is a sample Quick Lube business plan template & feasibility report. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. 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. 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. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Entrepreneurs looking to buy an existing business should also be familiar with valuations, and feel comfortable estimating value independently of the business owner or brokers asking price. 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. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. The most successful owners invest in these practices to deliver the best service for their customers. 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. A typical location performs about 1,200 jobs per month. They are responsible for the direct employment of almost 90,000 people. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. 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. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. As revenues have increased, however, net profits have decreased by 2.3%. 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. 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. Later, too, you can use this list to create an overview of your companys value for potential buyers. (Car Wash Magazine), #11. 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. But as a seller, you have to put some number on your operation, especially if you want to be compensated for what you've built, taking into account all kinds of equity. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. However, due to the confidentiality agreements stipulated by some of our current sellers, were not able Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. Often, sellers keep their business liabilities and pay off their debt after their business is sold. The MS Word and MS Excel documents feature a completely automated table of contents, industry research, and specific marketing plans that are for a Quick Lube Oil Change. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. If you ever want to learn . (Car Wash Magazine), #4. 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. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. Then, you can demonstrate to potential buyers what makes your business stand out. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. person. Small companies can compete successfully by owning favorable locations. Our Services are guaranteed to exceed your vehicles new car warranty standards! Digital vehicle inspections are a great way to show the value of service to your customers, which can ultimately allow you to sell more services per visit. Routine maintenance services like adjusting tire pressure, changing windshield wipers, replacing light bulbs, and topping off auto fluid levels are usually done in 10 minutes or less. Franchise Quick Lube, Car Wash, and RE in New Mexico! Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. 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. Our partners compensate us. Maintaining the website with new trends and advises. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . In 2011, 31% of consumers preferred a premium product. Examples include: Intangible assets: These are all the non-material assets that add value to your business. 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. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. A well-run business will make transitioning ownership, without losing. assign a green, yellow, or red status to each part. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. 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 most popular has been around for a while, hybrid-electric cars. I will only use Jason for 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. First, though, you have to get your financial information in order. But buyers arent exempt from this step in the process! So, established businesses with stable profitability often use this valuation approach. Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. 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. This information may be different than what you see when you visit a financial institution, service provider or specific products site. 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. These businesses are also not involved in body, paint, interior or glass repair. This process is automatic. to post every listing on the site. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. (IMR Automotive Research), #9. Order Reprints. The average price for a multi-point oil change within the quick lube industry is $36.82. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. , established businesses with stable profitability often use this list to create an overview of companys. Customers and relatively low overhead sellers keep their business liabilities and pay off their debt after their business liabilities pay... Had a lot of extra if so, read on about what it takes to become one can not us... 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