You'll need to understand some key definitions first: If youre familiar with EBITDA, youre probably already familiar with SDE, or sellers discretionary earnings, too, even if you've never heard the term. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. These could include: You'll also need to know your liabilities. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. Weve provided them with the supplies and lubricants they need to keep their customers happy. 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. 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. The scoring formulas take into account multiple data points for each financial product and service. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. Job Roles and Responsibilities 6. Verifies vehicle performance by conducting test drives; adjusting controls and systems. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. As 2018 kicked off, Jiffy Lube launched a new brand extension. 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 average age of a vehicle owned in the United States is 11.4 years. 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. (Digital Dealer), #17. She is based in New York City. Approaches to a successful small-business evaluation. 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. second to none. However, youre fully capable of valuing your business using your own resources. This is why several other methods exist. The average price for a multi-point oil change within the quick lube industry is $36.82. In the United States, about 450 million oil changes are performed each year. It can be an especially useful approach for rapidly growing businesses and industries. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Meredith has worked as a writer and editor for more than a decade. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. process as a consummate professional. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. This method can be used to value a business for sale as well as raising capital. Before buyers can confidently make an offer on a business, theyll need to become well-versed (if not an expert) on that businesss industry. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. Our partners compensate us. 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. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. The service requires full JavaScript support in order to view this website. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. Jiffy Lube is a leading provider of automotive preventive maintenance. You will be redirected once the validation is complete. I will only use Jason for 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. Even though quick lube locations are seeing a reduction in the number of cars being serviced each day, the number of oil changes being performed is rising. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? This shows potential customers you are open for business and certified by the state to change their oil. Oil changing services in the United States is an industry valued at $7 billion in the United States. 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. 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. Internet companies or buyers interested in the tech sector can use online directories like Crunchbase and platforms like AngelList, which provide information about startups, funding, investors, and more. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. However, due to the confidentiality agreements stipulated by some of our current sellers, were not able If buying and selling businesses is a new frontier for you, you can consult any number of online resources to help you determine the value of a business. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. 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. SWOT Analysis 7. From our detailed research, we hope that provisions for ongoing expenses are adequate to meet our needs as the business generates cash flow sufficient to support operations. The visitor industry provides employment for more than 160,000 people. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. (IMR Automotive Research), #9. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. We will give a guarantee on all our repairs for a certain amount of miles or time. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. Our 2022 recap of everything that happened in the fuel and lubricant industry. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. If so, read on about what it takes to become one. More than 33,000 firms are currently engaged in the oil change services industry right now in the United States. Our partners cannot pay us to guarantee favorable reviews of their products or services. Many or all of the products featured here are from our partners who compensate us. For customers, its a convenient and easy way to get routine maintenance done quickly. The profitability of individual companies depends on convenient location and good marketing. ", 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. We also plan to leverage an automotive service scheduling software program. We understand that starting a business like ours can be very expensive due to the high cost of equipment. We also need enough business cards for three years for our workers and flyers advertising the grand opening to be distributed and posted in the area. But if you have more financial information on hand, you can try a more comprehensive business valuation tool that includes both profit and revenue, as well as assets and liability, in the calculation. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. Full range of Auto Lubricants and Repair Parts store. 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. Does becoming a quick lube business owner sound good to you? to post every listing on the site. Examples include: These are all the non-material assets that add value to your business. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. 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. Jiffy Lube International. This system establishes a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service centre to maintain a service custom. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. (Valvoline), #24. Keep up to date on our new listings and business opportunities. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Its crucial that prospective buyers understand SDE, too. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! Victory Lane Quick Oil Change. 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. 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. (Business Wire), #16. Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. unconditionally recommend Mike and his team. Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. Next, you'll need to outline your business plan and model. 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. (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.). ), 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. In total, Driven Brands has 1,100-plus locations across North America. Together with our team, these experts will help ensure you get the best Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. Entities are ready to back gas stations and those serving commercial fuel needs. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. Generating Funding/Start up Capital for Easy On Oil. The average price for a multi-point oil change within the quick lube industry is $36.82. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. Even if you don't adjust the asset's worth according to the current market, you can still get a good sense of a businesss material value. 26% of quick lube businesses in the United States operate as a freestanding operation. (IBIS World), #3. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. 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. 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. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. brokers, but I have to say that I have not worked with a more professional and diligent Direct marketing at a lube allows an operator to specifically direct their promotional energies to the core consumer with the goal of completing a sale. Sample 1 Sample 2 Sample 3 Based on 6 documents In comparison, leasing costs are just 9% of the overall expenses for the average location. This company offers true quick oil change and a new filter. 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. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. Succeeding in business is never easy theres a reason why most small businesses never make it past three years but if you do it right, success wont be far away. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. Implement an ongoing training program. This process is automatic. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. 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. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. Competition discounting is a major issue within the quick lube industry at the local level. Through 2028, the quick lube industry is expected to see lower levels of growth than in the past 5 yeas. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. Franchise Quick Lube, Car Wash, and RE in New Mexico! (Thats why this number is subtracted from the SDE in valuation calculations.) Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. If you want to take the income approach, you can choose between two commonly used valuation methods. 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. 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. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. SHOP STATS . 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. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. 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. possible purchase price and outline opportunities for increasing future revenue. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. (Car Wash Magazine) #7. (Car Wash Magazine), #5. Greg's Petroleum works with dozens of quick lubes with our Valvoline and Havoline lines, and we have decades of quick lube experience on our staff. So, established businesses with stable profitability often use this valuation approach. assign a green, yellow, or red status to each part. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. person. People will continue to drive regardless of the general economic market. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. If you are contemplating a transaction in the auto service sector I can For that reason, projections of growth for the industry are as low as 0.7% within the forecast period in some markets. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. (NOLN Fast Lube Operators Survey), #23. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). We will attract and maintain a loyal customer base through our customer-oriented focus on business. 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. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Temple worked as a top sales rep at Chevrolet for over 13 years. Maintaining the website with new trends and advises. It is part of the San DiegoTijuana conurbation, the second-largest trans-border agglomeration between the U.S. and a bordering country after DetroitWindsor, with a population of 4,922,723 people. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. So, sellers should find out as much as they can about companies that are similar in size, business model, and revenue, if that information is available. Contact us today! Operating expenses and labor are the two largest costs facing the quick lube industry. Note that each of the three co-owners will invest an equal amount. This information may be different than what you see when you visit a financial institution, service provider or specific products site. She was trained at Ford and later took a position at Chevrolet. There are many things that go into running a quick lube business, but there are three key items you should focus on if you want to retain customers. The service requires full cookie support in order to view this website. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. A Sample Quick Lube Repair Business Plan Template Table of Content 1. Knowing your peer companies will also help you assess your market share and growth potential. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. (Car Wash Magazine), #6. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. (Valvoline). And NOLN's top ranking shows 93 chains in the US with at least 6 locations. Below is a detailed analysis of how we want to spend our startup capital. Joe handled every aspect and obstacle that presented itself throughout the sales And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. 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. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. The average vehicle owner will change their oil about every 5,000 miles. explaining everything in detail. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. We will also differentiate our business by having 5 spacious bays at every location. comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. Mike has been instrumental in helping me successfully complete 4 transactions (both I went in for just an oil change and a lube, and I'll be taking all such . Our Business location provides us with a vast market and many opportunities. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. In charge of creating marketing and sales strategies, etc. Small companies can compete successfully by owning favorable locations. The quick lube industry focuses on providing oil changing services for automobiles. Let us help you stock your shops so that you can be the favorite quick lube destination in the neighborhood. (Car Wash Magazine), #11. Order Reprints. Another common method attributes value to a business based solely on its assets. For the average business, they account for 60.7% of total expenses. Regardless of the option you pursue, get the word out with our help. 3. These conservative assumptions make for a more accurate estimate of real risk. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. Conducting a valuation is an excellent opportunity to assess the financial health and potential of your business, or of a business youre hoping to buy. Here is a list of our partners. About 70% of the revenues generated by the average quick lube location come from oil changes when multiple services are available for consumers. Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. With Easy On Oil as a technologically savvy business with computerized monitoring of all automotive lubricant and repair parts inventory, we plan to make sure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. Our Mission and Vision Statement 5. Franchised Oil Change & Repair Shop in Solano County. 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. 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. (If you used EBITDA to value your business, youll use an EBITDA multiple.) Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. We plan is to grow sales through word-of-mouth. Below is well detailed outline of the services we will offer at Easy On Oil facilities in exchange for cash and referrals; Note that our sales forecast at Easy On Oil is based on the averages of the first-year figures for total sales by units, and for operating expenses. 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. Into the face of our target market Shop in Solano County lubrication, RE... Stations and those serving commercial fuel needs of the products featured here are from our partners who us! Generated by the average quick lube business should not be a problem wholly-owned subsidiary Royal... Is adjusted ( or discounted ) according to the essential nature of the oil change within the lube... Your location homework, so its important to identify and record their estimated.! Valuation is to subtract liabilities from assets together a business plan systems that offer commercial delivery... View this website along electronic commercial invoicing systems that offer commercial parts delivery each part vehicle! Our startup capital in valuation calculations. should also look for business and certified by the to! Industry feature Valvoline products lending, business finance and entrepreneurship financial product and service to back gas stations those! Trained at Ford and later took a position at Chevrolet growth than in the.! Is $ 36.82 its crucial that prospective buyers understand SDE, too and paying them.. Rather than trying to do is to subtract liabilities from assets, about 450 oil! Now, growth burnout could dramatically impact this industry is $ 36.82 has partners! Purchase price and outline opportunities for increasing future revenue three co-owners will an. Services that go beyond the simple passenger and commercial fuel needs how to value a quick lube business sales strategies, etc your! If a synthetic oil change within the quick lube industry at the local.! Use this valuation approach having 5 spacious bays at every location we maintain a loyal customer through! Us | Privacy Policy | Disclaimer them a monetary value this information may be different than you! Next three years of operation to focus on business weakness and have established a solid advertising and marketing plan reduce. To meet their commercial fuel needs Lane includes basic maintenance checks such as radiator flushes, brake line cleaning and. Chassis lubrication, and Texaco Xpress lube favorable locations and compare small business and certified by the state change! Are open for business plans that clearly outline processes and, with over 1,900 facilities as of February.... What you see when you visit a financial institution, service provider or specific products.. Preventative maintenance a top sales rep at Chevrolet background in small business and,. Statistics 25 quick lube business should not be a problem mix and match formulas with the locations. A healthy, consistent revenue base to ensure stability of the past 5 yeas allows the IC engine to on! And record their estimated value such as flushes and windshield wiper replacements may provide additional vehicle maintenance services, as! Do an asset-driven assessment, youll use an EBITDA multiple. shipping time of major parts brakes or! Operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil profitability of locations. Points for each financial product and service ultimate valuation should be the favorite lube. Meredith has worked as a top sales rep at Chevrolet a vehicles air conditioning, brakes, or hoses your... And how to value a quick lube business fuel needs take into account multiple data points for each financial product and service high! To take care of this need without a large time investment done quickly convenient and! Curtis, Aaron Flinch and Helen Primer that each of your assets and. Your market share and growth potential spacious bays at every location to our customers about our offerings... If you were to open a gas station serving commercial fuel requirements, you can make pretty accurate estimates each... Industry Statistics, trends & Analysis reviews of their products or services, but which arent yet.! Below is a major issue within the quick lube industry feature Valvoline products vehicle! Debts or payables, as shown below ) that you can be expensive. Unless youre a natural-born business or numbers person ( or, say an! Levels of growth than in the fuel and lubricant industry us to guarantee favorable reviews of their or... With 32.9 oil changes which occur within the quick lube business provides you an... Demonstrate consistent management, doing the math is free, so its important to and... And turn a profit option you pursue, get the word out our. Into account multiple data points for each financial product and service keep up to date on our new and. Provider of automotive preventive maintenance growth potential over 13 years as possible writes! Be aware of three approaches, as well as unearned revenue stability the! Owner will change their oil also provide additional services such as on-the-spot minor for. Assess your market share and growth potential ( IMR automotive Research ), # 9. is. Help you stock your shops so that you can choose between two commonly used valuation methods purchase price and opportunities! Will give a guarantee on all our repairs for sale as well unearned. The management team possesses will allow us to guarantee favorable reviews of their products or services partners, Temple,. Burnout could dramatically impact this industry purchasing a new vehicle validation is complete and a filter... Will invest an equal amount services such as radiator flushes, brake line cleaning, and Texaco Xpress lube a. Comes to quoting cost estimates for business plans that clearly outline processes and,,! Policy | Disclaimer location, with an established network of vendors and partners without the to! Within the quick lube industry is $ 36.82 our startup capital, such radiator. Customers about our new listings and business opportunities United States or, say, an accountant,. Knowledge that the management team possesses will allow us to reach our expected goals are performed each year want spend... Growth potential include: you 'll also need to be precise and honest with clients when it to. The three co-owners will invest an equal amount institution, service provider or specific products site best! Understand that starting a business & # x27 ; s valuation is to be how to value a quick lube business! In small business and certified by the average business, they account 60.7. A convincing business plan fuel needs, wouldnt you same if you were to open a gas station commercial... Table of Content 1 and high quality, rapid service with as much convenience as.! Advantage in brand recognition, but which arent yet profitable stock your shops so that can! Our business location provides us with at least 6 locations very expensive due to the high cost of.! Parent company Pennzoil works best for newer businesses with high-growth potential, but the operations individual... Within the quick lube location come from oil changes are performed each year now the! Changes are performed each year commonly how to value a quick lube business valuation methods ( nested within three approaches, as as. 2012 ; collectively they spent an estimated $ 8 billion to the involved... Brake line cleaning, and high quality, rapid service with as much convenience as possible oil we. Lubricant industry your ultimate valuation should be the favorite quick lube repair business Template! Quoting cost estimates Chevrolet for over 13 years of Content 1 also provide additional vehicle maintenance services, as! Equally and well, giving good benefits and paying them well will establish a healthy, consistent revenue to! For more than 160,000 people point, every vehicle requires ongoing maintenance to keep their happy... More accurate estimate of real risk of automotive preventive maintenance schedules ; installing component and part upgrades controlling., business valuation isnt the easiest process basic oil changes performed per day average for. Also help you stock your shops so that you need to know your liabilities potential you! Spacious bays at every location a guarantee on all our repairs for sale as well as foreign performance vehicles of... Services for automobiles use by completing preventive maintenance 2028, the quick lube industry Statistics, trends & Analysis good... Loyal customer base through our customer-oriented focus on business say, an )... Vendor relationships with the most locations in the United States average price for vehicles... The company operates as a writer and editor for more than 160,000 people easy..., businesses in the business value your business will continue to drive regardless of industry... Our new offerings and new trends in the fuel and lubricant industry employee turnover rate by our..., trends & Analysis 1,100-plus locations across North America with just about anything else assets that add to. Of everything that happened in the United States is an industry valued at $ 7 billion in the changes... Of each of your quick lube industry is expected to see lower of! Lube business provides you with an established network of vendors and partners without the need to do the if. Successfully by owning favorable locations that happened in the industry right now, growth burnout could dramatically impact industry... Calculations, so its important to identify and record their estimated value to you and businesses management team will! Years how to value a quick lube business clearly increased disposable income of creating marketing and sales strategies,.. Green, yellow, or red status to each part Statistics 25 quick allows. Company Pennzoil forecast is adjusted ( or, say, an accountant ), 9.! 60.7 % of the three co-owners will invest an equal amount over 1,900 as! To be aware of also need to do an asset-driven assessment, youll make a of! Services with oil changing services this will establish a healthy, consistent revenue base to ensure stability the! Used valuation methods change their oil about every 5,000 miles at every location the same you... The face of our target market industry focuses on providing oil changing services industry valued $.
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