Industry Overview 2. At Easy On Oil, our mission is to provide fast, reliable, and cost effective oil change and lubrication services for vehicle owners in San Diego, California. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. 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. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. With ever-increasing vehicle ownership in the United States, consumer demand for oil changes has a low potential for fluctuation due to the fact that drivers lack the necessary training, materials, and resources to successfully perform their own oil changes. 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. One Independent Quick Lube w/RE in El Dorado, KS. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. 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. On average, 2/3 of business comes from . Theres a different SDE multiple for every industry. If YES, here is a sample Quick Lube business plan template & feasibility report. 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. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. 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. #1. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. 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. Through 2028, the quick lube industry is expected to see lower levels of growth than in the past 5 yeas. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. Because the process for determining the value of a small business is complicated, you might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. Let's #LineItUp from Washington State! 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. Generating Funding/Start up Capital for Easy On Oil. For the average business, they account for 60.7% of total expenses. ), Monitor quality and appropriateness of services and care, Provide guidance and leadership for performance guidelines, Manage staffs relations and/or representation, Manages external research and coordinate all the internal sources of information to retain the organizations best customers and attract new ones, Models demographic information as it relates to those who need our services, In charge of promoting the companys image. 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. This is where you come in! You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? 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. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. Regardless of the option you pursue, get the word out with our help. These 10 chains account for nearly 60% of the more than 32,000 US locations. It's called Jiffy Lube Multicare. 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. 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. Most locations achieve this figure with just 2-5 service bays available to them. At Easy On Oil, weve taken note of all these and have partnered with a renowned banking platform to help us serve our clients comfortably. In any of those cases, buyers will be interested in the individual value of your investments or equipment. In fact, with our location distribution we cover the market. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. Electric vehicles impact the future of the automotive repair industry in many different ways. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. These are some of the most efficient cars to ever be driven. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Operating expenses and labor are the two largest costs facing the quick lube industry. 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. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. 8 Stalls & Pits! First, though, you have to get your financial information in order. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Our partners cannot pay us to guarantee favorable reviews of their products or services. Profit and loss statements for the last three years. 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. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. How will you separate yourself from the competition in a crowded market? So, most maintenance on electric cars will be more software driven. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. 3. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. (Valvoline). December 16, 2021. These could include: helps you make accurate projections for earnings and market growth. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. Your best angle is to make a list of the production, property, and resources that comprise your business assets and liabilities, cash and investments, employees and intellectual property. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. She was trained at Ford and later took a position at Chevrolet. Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil Change SM, and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. Does becoming a quick lube business owner sound good to you? Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. For a full breakdown of the quick lubes we have for sale, as well as a 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. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. Franchised Oil Change & Repair Shop in Solano County. Our Services are guaranteed to exceed your vehicles new car warranty standards! Another common method attributes value to a business based solely on its assets. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. The profitability of individual companies depends on convenient location and good marketing. 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