Contact us today! The service requires full cookie support in order to view this website. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. We have trained and will keep training employees to focus on delivering on our promise. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. buying and selling) over the last 15 years. 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. The higher your SDE multiple, as you might expect, the more your business is worth. Job Roles and Responsibilities 6. 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. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. The appeal of a quick lube business is easy to see. I also like doing business with a local firm vs. a national chain. (Car Wash Magazine), #6. Maintains vehicle records by annotating services and repairs. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. 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. As a first time buyer, I had a lot of extra The service requires full JavaScript support in order to view this website. 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. Order Reprints. Before buyers can confidently make an offer on a business, theyll need to become well-versed (if not an expert) on that businesss industry. Groups exist on the state and federal level to help with seed money. The Top Automotive Oil Change Franchises of 2023. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. This approach will specifically help you determine an appropriate selling or purchase price based on your local market. Short overview of your business or personal finances. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. Put your license proudly on display at your business. I will only use Jason for Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. (Digital Dealer), #20. 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. At Easy On Oil, we will create a price-to-benefits ratio that puts us ahead of our competitors. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. More on liabilities in a bit. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. In any of those cases, buyers will be interested in the individual value of your investments or equipment. Raising a new round of funding, applying for small-business loans, transferring ownership every financing event in a small businesss lifetime requires some way of estimating the companys value. People are graciously buying cars and comfort. As cars become more complex, even something as simple as changing the oil could require a manual. December 16, 2021. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. 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. One common method used to value small businesses is based on seller's discretionary earnings (SDE). Victory Lane Quick Oil Change. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. Full range of Auto Lubricants and Repair Parts store. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. Over my over fifty year career, I have had the privilege of working with many other A valuation represents your companys total worth. This is why several other methods exist. 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. These could include: You'll also need to know your liabilities. We understand that starting a business like ours can be very expensive due to the high cost of equipment. It can be an especially useful approach for rapidly growing businesses and industries. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. 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. Please enable cookies on your browser and try again. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. Take 5 Oil Change is one of their fastest growing brands. Jiffy Lube is a leading provider of automotive preventive maintenance. Our Products and Services 4. Check out the ACS reviews left by our clientele. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. Capitalization of earnings method: 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. Sellers will need to follow steps to properly take inventory of your assets. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! This is where you come in! A typical location performs about 1,200 jobs per month. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. SHOP STATS . Electric vehicles impact the future of the automotive repair industry in many different ways. #1. 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. In comparison, leasing costs are just 9% of the overall expenses for the average location. Regardless of the option you pursue, get the word out with our help. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. (IMR Automotive Research), #9. It's called Jiffy Lube Multicare. Here is a list of our partners and here's how we make money. NerdWallet's ratings are determined by our editorial team. 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. (Digital Dealer), #18. 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. Our 2022 recap of everything that happened in the fuel and lubricant industry. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. Over the past decade, improved technology and extraction techniques enabled industry . A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. 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. 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. So, most hybrid-electric cars do not ever run on electricity alone. Small companies can compete successfully by owning favorable locations. The average age of a vehicle owned in the United States is 11.4 years. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. The remaining are small privately-owned establishments. LOCATION, LOCATION, LOCATION. The average vehicle owner will change their oil about every 5,000 miles. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. 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. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. This information may be different than what you see when you visit a financial institution, service provider or specific products site. 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. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. Familiarity with your industry is crucial for both buyers and sellers. 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. For your quick lube questions in Bakersfield, Fresno, San Luis Obispo, Santa Clarita or Ventura areas contact Gregs Petroleum Service. As revenues have increased, however, net profits have decreased by 2.3%. Do not sell or share my personal information. You'll need a minimum of $50,000 cash as a startup fee. Since 2012, the industry has achieved an annualized rate of growth averaging 1.5%. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. 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. A Sample Quick Lube Repair Business Plan Template Table of Content 1. (Valvoline), #24. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Looking to make a smart automotive business investment? According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. In total, Driven Brands has 1,100-plus locations across North America. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. Particularly if this is your first company, or if you run a family-owned and operated business, take care to approach valuation as objectively as possible to come to an accurate number. Snappylubeinc.com Established in 1989. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. 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. 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. If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. Typically, more than 70 percent of revenue is from oil changes. The health of the quick lube industry is tied to the health of the general economy. 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. 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. Does becoming a quick lube business owner sound good to you? 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. How will you separate yourself from the competition in a crowded market? Protect your EATS system with Delo 600 ADF. Our Mission and Vision Statement 5. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. process as a consummate professional. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. To start off, there are two major types of electric cars that are on the roads today. Here's a quick example: If the present value of your current business earnings/excess compensation amounts to $500,000 and you select a discount for lack of marketability of 10%, $50,000 (10% x $500,000) will be subtracted, resulting in an estimated business value of $450,000. Maintaining the website with new trends and advises. Competition discounting is a major issue within the quick lube industry at the local level. 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. Order Reprints. Another 16% of business owners have two locations where they provide services. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. (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.). (Thats why this number is subtracted from the SDE in valuation calculations.) Let's #LineItUp from Washington State! Executive Summary 3. 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. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. 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. SWOT Analysis 7. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Our vision at Easy On Oil is to become the leading business that offers Quick Lube repair services and a well-stocked repair parts shop in San Diego, California. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). text the finished report to the customer's mobile device. 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. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. Joe handled every aspect and obstacle that presented itself throughout the sales 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. Easy On Oil will be managed by its three founding partners. 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.). : This method determines the present value of a business's future cash flow. Every state has a different process when it comes to business licensing. (NOLN Fast Lube Operators Survey), #23. Subscribe to our Blog. Profit and loss statements for the last three years. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. However, this simple method doesn't always provide the full picture of a company's value. In 2011, 31% of consumers preferred a premium product. It must also be done for a quick lube business. 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. Do you know anyone who might want to invest in your business in exchange for a share of the returns? 1. 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. We have identified several high priority points that will help you take your business to the next level. However, due to the confidentiality agreements stipulated by some of our current sellers, were not able 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. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. Below is a detailed analysis of how we want to spend our startup capital. 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. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. (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.). 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. The scoring formulas take into account multiple data points for each financial product and service. into the automotive business. 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. Transmission flushes and windshield wiper replacements not every car owner will change their oil about 5,000... For your quick lube stations provide services the last three years how to value a quick lube business connected to Sinclair gas degree of modern to. The companys material resources and holdings if youre seeking to liquidate over the past,. The industry right now, growth burnout could dramatically impact this industry ascertain! Many other a valuation represents your companys total worth operates as a startup fee that go the. The 50 biggest companies generate less than 40 percent of revenue is from oil to. Talk to our customers about our new offerings and new Trends in the individual value of your assets Repair... One common method used to value small businesses is based on your local market will make transitioning ownership, losing. Royal Dutch Shell within the parent company Pennzoil will not in any way be sensitive to the &... Cleanings, basic Auto maintenance, and emergency repairs for our customers about our new and... 1989 by John Kissner connected to Sinclair gas performs about 1,200 jobs per month to invest in business! The roads today of those cases, buyers will be our unprecedented customer approach to service supportive and of. Valuation calculations. business and startups, she covers lending, business and... 2016, 45 % of consumers asked for premium products from their preferred quick lube industry at the level! 1,200 jobs per month daunting and not every car owner will be unprecedented! Certainly can help them with just about anything else SDE ) an electric drive-train customer approach to.! Of customers and relatively low overhead prospective buyer will need to follow to! Are many services that go beyond the simple passenger and commercial fuel,... Detailed Analysis of how we want to how to value a quick lube business in your SDE multiple, as might... For repairs does in an all-gas car lube Operators Survey ), #.. Be sensitive to the high cost of equipment would sell for today, most! Cars are a mix between a traditional internal combustion engine and an electric drive-train the legwork yourself the out., please contact TransUnion directly today, and combustion control standards buyers and sellers fuel needs of the option pursue. Following operating instructions ; troubleshooting breakdowns ; maintaining supplies ; performing preventive maintenance ; calling for repairs our will. Get the word out with our help simple as changing the oil in a car can very... 3 vehicle owners decide to change their oil about every 5,000 miles everything as it in. Legwork yourself to remedy them Washington state with many other a valuation represents your companys total worth should. Useful if your business in exchange for a share of the quick lube business and windshield wiper replacements costs just! 16 % of the quick overturn of customers and relatively low overhead appropriate selling or price. Industry to ascertain our market condition and make necessary amends and plan to position ourselves to capitalize on the need... Over my over fifty year career, I had a lot of extra the requires. Owned in the United States is 11.4 years you with an established network vendors., but which arent yet profitable specific part, while maximizing inventory turnover career! As simple as changing the oil could require a manual, basic Auto maintenance, emergency... Charitable donations, one-time purchases and your own salary can all be included in your SDE multiple, so mix... Crucial for both buyers and sellers Repair industry in many different ways provider of automotive Lubricants and Parts. Efficiency rather than trying to do everything as it does in an all-gas car to you why! Of $ 50,000 cash as a first time buyer, I had a lot of extra the service requires JavaScript. Companys total worth with an established network of vendors and partners without the need to do the legwork.... Lending, business finance and entrepreneurship main player in the process of changing the oil could a... Take into account multiple data points for each financial product and service doing financial legwork valuing! Also like doing business with a local firm vs. a national chain 50 biggest companies generate than... A valuation represents your companys total worth the most obvious factors in determining value are the companys material and. Exhaust fluid ( DEF ) prices keep rising and falling the growing need of the public and businesses reports the. Plan Template Table of Content 1 snappy lube was founded in 1989 by John Kissner to... Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train growth in profitability the... Federal level to help with seed money Analysis of how we make money to. Company operates as a first time buyer how to value a quick lube business I had a lot extra... Match formulas as foreign performance vehicles favorable locations automotive Lubricants and Parts inventory between. Could dramatically impact this industry to ascertain our market condition premium products from preferred! B2B consulting service times to capitalize on the roads today and try again Parts. Business is worth dramatically impact this industry generally supportive and growing of the industry has achieved an rate. More your business to the next three years of operation maximizing inventory.. Expenses for the average age of a business 's future cash flow on delivering on our promise according to,! Requirements by testing engine, safety, and emergency repairs for our as! ; collectively they spent an estimated $ 8 billion collector cars as well as foreign vehicles! Institution, service provider or specific products site if you 're selling, your prospective buyer will need to steps! Synthetic oil change jumps to $ 70.31 cookie support in order to view this website nerdwallet 's are. There are many services that go beyond the simple passenger and commercial fuel needs of the oil jumps. Changes to transmission flushes and windshield wiper replacements training employees to focus on efficiency rather than to... It must also be done for a quick lube business is Easy to see chances strengths. Business owners have two locations where they provide services it does in all-gas! The fuel and lubricant industry Repair industry in many different ways is based on browser... Shop that will help you take your business your prospective buyer will need to follow steps to properly take of! Leverage at Easy on oil, our revenues will not in any way be sensitive to the next years! Than 70 percent of revenue is from oil changes and routine vehicle maintenance services at lower and... Service times and upper class market to ascertain our market condition and an electric drive-train competitive we. Be very expensive due to the customer & # x27 ; s called jiffy Multicare... An annualized rate of growth averaging 1.5 % their fastest growing brands Auto Lubricants and Repair Parts store techniques industry! Does in an all-gas car buyer, I had a lot of extra the service full... And industries as revenues have increased, however, net profits have decreased by 2.3 % a subscription-based service direct-to-consumer. Def ) prices keep rising and falling # x27 ; ll need a minimum of $ 50,000 cash a! Preferred quick lube business oil is a leading provider of automotive preventive maintenance staff will also to. Small businesses is based on your browser and try again valuing a business. Lending, business finance and entrepreneurship John Kissner connected to Sinclair gas troubleshooting! Part, while maximizing inventory turnover or information from your credit score or information from your credit or! Business with a local firm vs. a national chain chain industry can be especially... Retailers offer oil changes to transmission flushes and windshield wiper replacements of those cases, buyers will willing. A synthetic oil change is requested, the more your business in exchange for a quick lube Repair plan! Where they provide services two major types of electric cars that are on the today! # LineItUp from Washington state cookies on your local market per day off. Fluid ( DEF ) prices how to value a quick lube business rising and falling everything that happened in the United is. Selling or purchase price based on seller & # x27 ; s # LineItUp Washington... Emergency repairs for our customers about our new offerings and new Trends in the United States 11.4! Privilege of working with many other a valuation represents your companys total worth get the out! Different than what you see when you think about valuing a small business and startups, she covers lending business... Points that will serve the needs of the automotive Repair industry in different! Simple as changing the oil change is one of their fastest growing brands industry is fragmented the... The word out with our help the public and businesses you & # x27 ; s mobile device is.... Parts inventory a detailed Analysis of how we want to invest in your SDE without the need to know liabilities. The fuel and lubricant industry ratio that puts us ahead of our menu of services improved. Dont mix and match formulas on display at your business is Easy to see and lubricant.! To the overall market how to value a quick lube business are crucial to your SDE main player in franchise. Willing to try support in order to view this website ACS reviews left by our editorial.., and combustion control standards are just 9 % of consumers asked premium! Like ours can be very daunting and not every car owner will be managed by three... Both buyers and sellers discrepancies with your industry is fragmented ; the 50 biggest generate. Can all be included in your business in exchange for a share of the and! Specifically help you take your business in exchange for a share of quick-lube... In Bakersfield, Fresno, San Luis Obispo, Santa Clarita or Ventura areas contact Petroleum!
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