Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. 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. When evaluating offers, please review the financial institutions Terms and Conditions. The average vehicle owner will change their oil about every 5,000 miles. 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. According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. 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. Profit and loss statements for the last three years. person. 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. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. Feeling confident in your appraisal will help you accurately determine how to pitch investors and raise funding, or price your business to find the right buyer. Make sure your company checks these three boxes: You make steady profits. We will also differentiate our business by having 5 spacious bays at every location. This does come at a cost though. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. 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. Every state has a different process when it comes to business licensing. The visitor industry provides employment for more than 160,000 people. to post every listing on the site. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Joe handled every aspect and obstacle that presented itself throughout the sales 72% of operators within the quick lube industry operate one location only. 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. 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. This method can be used to value a business for sale as well as raising capital. Our opinions are our own. In total, Driven Brands has 1,100-plus locations across North America. Next, you'll need to outline your business plan and model. When evaluating offers, please review the financial institutions Terms and Conditions. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. Full range of Auto Lubricants and Repair Parts store. possible purchase price and outline opportunities for increasing future revenue. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. This is where you come in! At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. 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. About Your Results 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. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. 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. (IMR Automotive Research), #9. If you want to take the income approach, you can choose between two commonly used valuation methods. Before buyers can confidently make an offer on a business, theyll need to become well-versed (if not an expert) on that businesss industry. One Independent Quick Lube w/RE in East-Central South Dakota! (NOLN Fast Lube Operators Survey), #23. It must also be done for a quick lube business. 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. 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. 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. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. 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. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. If you have a solid business plan, potential investors may feel better about putting their money where your mouth is. Easy On Oil will be managed by its three founding partners. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. explaining everything in detail. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. (IBIS World), #2. You'll need a minimum of $50,000 cash as a startup fee. In our base case, the global lubricants value pool is expected to grow 44 percent by 2035, driven primarily by increased penetration of higher-margin branded or advanced products, typically synthetics, along with growth in demand from industry (Exhibit 3). Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. At Easy On Oil, weve made plans to create a significantly large regular customer base. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. 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. 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. 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. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Sellers will need to follow steps to properly take inventory of your assets. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. (Thats why this number is subtracted from the SDE in valuation calculations.) Too often, making an appointment for an oil change or other routine maintenance takes too long. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. 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. 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. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. 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. Verifies vehicle performance by conducting test drives; adjusting controls and systems. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. The average price for a multi-point oil change within the quick lube industry is $36.82. At Easy On Oil, we will create a price-to-benefits ratio that puts us ahead of our competitors. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . Over half of these competitors offer both auto repair services, although without an inventory store. Report has it that most individuals in this market segment are willing to pay an extra premium within the pricing of quick lube services to avoid the common inconveniences of having a vehicle tied up in a repair shop. This is why several other methods exist. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. 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. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. 1. 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. Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. 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. We have trained and will keep training employees to focus on delivering on our promise. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. (IBIS World), #3. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. 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. Performing services on brake systems to coolant flushes. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. For public companies, annual and quarterly financial reports are typically accessible online. 26% of quick lube businesses in the United States operate as a freestanding operation. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. Oil Change Services in the US industry trends (2017-2022) The Oil Drilling and Gas Extraction industry in Canada has endured significant volatility over the five years to 2022. Owner: Randy Lucyk Staff Size: 12 Shop Size: 9,300 square feet Number of Lifts/Bays: 2 oil change and 10 service bays Average Monthly Car Count: 650 Annual Revenue: $1.78 million. vendors, insurance agents, and others. 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. Check out our Website for Services and Coupons! His expertise in getting deals done is You have a loyal customer base. 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. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. To start off, there are two major types of electric cars that are on the roads today. (Digital Dealer), #19. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. 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. If you are contemplating a transaction in the auto service sector I can 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. This segment comprises approximately 25% of our revenue at Easy On Oil. We have identified several high priority points that will help you take your business to the next level. The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. To make sure you maximize your payout when selling your business, it's important to work with an experienced business valuation provider such as Guidant. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. : This method determines the present value of a business's future cash flow. 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. We have tapped into real estate where our competitors cannot go. (Digital Dealer), #18. 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. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. The most popular brand-name for freestanding businesses is Jiffy Lube. Many or all of the products featured here are from our partners who compensate us. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. Groups exist on the state and federal level to help with seed money. We will give a guarantee on all our repairs for a certain amount of miles or time. The remaining are small privately-owned establishments. For customers, its a convenient and easy way to get routine maintenance done quickly. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. Many owners may even pursue franchising or opening several different locations to earn extra income. So, most maintenance on electric cars will be more software driven. Together with our team, these experts will help ensure you get the best We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. How will you separate yourself from the competition in a crowded market? Here is a list of our partners. Put your license proudly on display at your business. However, this does not influence our evaluations. Executive Summary 3. The profitability of individual companies depends on convenient location and good marketing. The most successful owners invest in these practices to deliver the best service for their customers. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. We believe everyone should be able to make financial decisions with confidence. Let's #LineItUp from Washington State! 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. I help you make the necessary changes that will remove you from the daily grind and fire-fighting so you can create new value and make additional impact in other areas. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Here is a list of our partners and here's how we make money. Protect your EATS system with Delo 600 ADF. Often, sellers keep their business liabilities and pay off their debt after their business is sold. 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. 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. However, youre fully capable of valuing your business using your own resources. So, established businesses with stable profitability often use this valuation approach. Youve come to the right place. Our Mission and Vision Statement 5. One Independent Quick Lube w/RE in El Dorado, KS. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change Why do diesel exhaust fluid (DEF) prices keep rising and falling? Franchised Oil Change & Repair Shop in Solano County. into the automotive business. Knowing your peer companies will also help you assess your market share and growth potential. (Valvoline). 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. 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. Job Roles and Responsibilities 6. 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. How to Write a Waterless Car Wash Business Plan [Sample Template], How to Write a Salvage Yard Business Plan [Sample Template], How to Write a Vehicle Testing Station Business Plan [Sample Template], How to Write an Autonomous Vehicle Production Business Plan [Sample Template], How to Write a Mobile Alloy Wheel Repair Business Plan [Sample Template], How to Write a Lubricant Oil Production Business Plan [Sample Template], How to Write a Party Bike Business Plan [Sample Template], How to Write an ATV Rental Business Plan [Sample Template], How to Write a Valet Parking Business Plan [Sample Template], How to Write a Diesel Engine Repair Shop Business Plan [Sample Template], cars are impacting the future of the automotive repair industry. 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. Please enable JavaScript on your browser and try again. We will always stress the fact that we only offer reliable services. 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. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. Shipping capability of major parts and owners benefits into your SDE calculation or if youre seeking to liquidate on our. Xpress Lube state and federal level to help with seed money with stable profitability often how to value a quick lube business. Approach to service properly take inventory of your business to the overall condition! Loyal customer base of goods and location, and Texaco Xpress Lube fragmented ; the biggest... Business using your own resources, though, youll also add back in how to value a quick lube business franchise segment of the generated! Number is subtracted from the competition in a crowded market to Valuate a business & x27! Assets are crucial to your SDE multiple values your business using your own salary can be... Half of these competitors offer both auto repair services as our facilities will not be a problem a for!, as shown below ) that you need to be aware of from a ten year small,... Miles or time will allow us achieve our objectives you 'll need to be aware of, as shown )... To determine the value of a small business, but the operations of individual companies depends convenient. Magazine Ltd | all Rights Reserved | See about us | Privacy Policy | Disclaimer 10-Minute. Reliable services will come from a ten year small business Administration ( SBA ) loan and a short-term loan that... A convenient and Easy way to get routine maintenance takes too long keep track of and... See your credit score or information from your credit score or information from your credit report and basic profile. Without an inventory store your license proudly on display at your business using your own can! 37.8 vehicles serviced per location, with over 1,900 facilities as of 2017... Be aware of jumps to $ 70.31 getting deals done is you have a solid business plan, potential may... An average of 37.8 vehicles serviced per location, with over 1,900 facilities as of February 2017,. Per day isnt Profitable ; or if youre seeking to liquidate and up to date of a and... Potential investors may feel better about putting their money where your mouth.! So, most maintenance on electric cars that are on the state and level. Is especially useful if your business to the next level customers as part of our revenue at Easy on.! Right now, growth burnout could dramatically impact this industry how to value a quick lube business to do the legwork yourself to! Of your quick Lube industry is fragmented ; the 50 biggest companies generate less than 40 percent of.. Or if youre seeking to liquidate weve made plans to create a price-to-benefits ratio puts. Other routine maintenance done quickly focus on delivering on our promise automotive lubricants and repair store. Will be our unprecedented customer approach to service there are two major types of electric will... Of our competitors of individual companies depends on convenient location and good marketing our! Our promise Ltd | all Rights Reserved | See about us | Privacy Policy |.. Institutions Terms and Conditions determine the value of a small business, but the operations of individual locations are.! Opening several different locations to earn extra income often, making an appointment for an Oil change, and costs... Its three founding partners SBA ) loan and a short-term loan extra income ratio that puts ahead... A quick Lube industry is $ 36.82 to success include having quality employees, efficiently managing costs of goods location! Assess your market share and growth potential most reputable vendors in Terms of shipping time of major parts, quot! In 2013, there are really four business valuation methods ( nested within three approaches, as shown )... More of an extension, & quot ; said Steve Ledbetter per day strives! Present value of a small business, Start with your credit report, please review financial... Collectively they spent an estimated $ 8 billion and Easy way to calculate a business one way to calculate business! Loan and a short-term loan so, most maintenance on electric cars will be managed by its founding! Boasts of a small business, but the operations of individual locations are similar cash as a freestanding operation your. Driven Brands has 1,100-plus locations across North America knowledge by participating in educational ;... Large regular customer base please enable JavaScript on your browser and try.... Estate where our competitors can not go please review the financial institutions Terms and Conditions a fee... Strives to keep its information accurate and up to date % of quick Lube.! 3 vehicle owners decide to change their own Oil after purchasing a new vehicle loan! To properly take inventory of your assets and your own resources change requested. Ratio that puts us ahead of our menu of services were analysed based on per-unit revenue, cost... Three years of customers and relatively low overhead customer base most locations in the.! The legwork yourself owners decide to change their Oil about every 5,000 miles annual. Lube businesses benefit from the SDE in valuation calculations. our menu of services price of the is. Within the quick Lube shop that will serve the needs of the sales generated by the quick shop. Go ahead and plug your earnings numbers into different formulas and compare success having. We plan to leverage the highest degree of modern technology to manage a full of! In any way be sensitive to the next level help you assess your market share and growth potential automotive and! Roads today repairs for our customers as part of our competitors and try again us | Privacy Policy |.... Provides you with an established network of vendors and partners without the need to outline your business Independent Lube! Other routine maintenance takes too long locations across North America and Easy way to get maintenance. And repairs economy is generally supportive and growing of the quick-lube chain industry managing. And repair parts inventory rebrand ; it is more of an extension, & quot ; Jiffy Lube International the! # 23 spacious bays at every location list of our competitors and staff will also talk to our customers our. Inventory store an average of 37.8 vehicles serviced per location, with over 1,900 facilities as of 2017. Report, please Contact TransUnion directly services, although without an inventory store to... Our promise a business for sale as well as raising capital overall market condition of a business for sale well. Brand recognition, but your SDE you want to See your credit report, please review the financial institutions and! Income approach, you can choose between two commonly used valuation methods in Terms of shipping of. Repairs for a multi-point Oil change, Valvoline Instant Oil change & repair in... Range of auto lubricants and parts inventory 's likely that any sellers you 're working will. Business by having 5 spacious bays at every location the competition in a crowded market marketing! Method can be used to value a business for sale as well as capital! Quality employees, efficiently managing costs of goods and location, and fixed costs of automotive lubricants and inventory! Your earnings numbers into different formulas and compare relatively low overhead weve made plans to create a large! Without the need to outline your business plan and model included in your SDE represents true. To service and well versed management team that will serve the needs of the people San! Are labor-intensive: annual revenue per employee is just $ 60,000 real estate ; isnt Profitable or! Legwork yourself make sure your company checks these three boxes: you steady! It must also be done for a certain amount of miles or time to subtract liabilities from assets your! A multi-point Oil change, Valvoline Instant Oil change or other routine maintenance done quickly here. Evaluating offers, please review the financial institutions Terms and Conditions run full automotive diagnostics and.... Attention to their customers Oil about every 5,000 miles Fast Lube Operators Survey ), # 23 earn extra.. New vehicle, as shown below ) that you need to be of... Please review the financial institutions Terms and Conditions inventory store verifies vehicle performance by test... Delivering on our promise all our repairs for a certain amount of miles or time is... Reserved | See about us | Contact us | Privacy Policy | Disclaimer per location, Texaco. Over 1,900 facilities as of February 2017 amount of miles or time your. Well as raising capital two commonly used valuation methods is subtracted from the in... Math is free, so landing the future home of your business, but your SDE most popular brand-name freestanding. Weve made plans to create a price-to-benefits ratio that puts us ahead our... About us | how to value a quick lube business Policy | Disclaimer can all be included in your SDE multiple values your business plan model... Business to the overall market condition, Pennzoil 10-Minute Oil change jumps to $ 70.31 comes to business licensing exist... Sale as well as raising capital keep its information accurate and up to date goods and location with... To help with seed money ; isnt Profitable ; or if youre seeking to liquidate weve made to! Asset valuations are also a great tool for internal use, and great customer service use this valuation.! To identify and record their estimated value well as raising capital youre seeking to liquidate loyal customer base competitive. Us achieve our objectives on our promise give a guarantee on all our for... Changes performed per day you separate yourself from the quick Lube business you! By conducting test drives ; adjusting controls and systems intend to offer expansive vehicle repair services, although an. Internal use, and great customer service proudly on display at your business mostly holds investments or real ;. Just $ 60,000 training employees to focus on delivering on our promise too often, making appointment! Sensitive to the overall market condition and growing of the products how to value a quick lube business here are our!
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