how to value a quick lube business

Before you can think about putting shovel to dirt, you must make a business plan outlining the services you will offer and how you plan to make a profit. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. If youre interested in learning more about the automotive business buying process and how our expert I will only use Jason for Generating Funding/Start up Capital for Easy On Oil. Do not sell or share my personal information. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. So, most maintenance on electric cars will be more software driven. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! ), 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. About the author: Meredith has worked as a writer and editor for more than a decade. (Car Wash Magazine) #7. We have identified several high priority points that will help you take your business to the next level. Another 16% of business owners have two locations where they provide services. 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. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. 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. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. 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. 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. These 10 chains account for nearly 60% of the more than 32,000 US locations. Our sales forecast at Easy On Oil is as follows; At Easy On Oil, our marketing and sales strategy will focus on reaching our target audience. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. 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. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. Figure 1: VVV's Segment Operating Income Since 2015. Please enable cookies on your browser and try again. 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. Youve come to the right place. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. For a full breakdown of the quick lubes we have for sale, as well as a (IBIS World), #2. 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. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. 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. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. The remaining are small privately-owned establishments. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. Great reputation and a long history of loyal employee and customer satisfaction. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. Regardless of the option you pursue, get the word out with our help. (Car Wash Magazine), #5. 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. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. (Car Wash Magazine), #7. 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. 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. 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. The visitor industry provides employment for more than 160,000 people. 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. (Business Wire), #14. 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. 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. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. If YES, here is a sample Quick Lube business plan template & feasibility report. 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. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. Most locations operate two to five bays in a drive-through building, and many use basement construction so that oil can be changed below while other services are being completed above. Pre-qualified offers are not binding. However, youre fully capable of valuing your business using your own resources. We will give a guarantee on all our repairs for a certain amount of miles or time. 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. 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. 26% of quick lube businesses in the United States operate as a freestanding operation. Here is a list of our partners. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. The most successful owners invest in these practices to deliver the best service for their customers. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. ", 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. Over my over fifty year career, I have had the privilege of working with many other 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. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. Sellers will need to follow steps to properly take inventory of your assets. : 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. Regularly getting the oil changed is one of the most important maintenance tasks you can do for your car, and fortunately, it's one of the cheapest. 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. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. Jiffy Lube is a leading provider of automotive preventive maintenance. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Businesses For SaleQuick Lube and Oil Change ServicesLas Vegas, NVNew Arrival$114,900 Opportunity for "3" Quick Lube & Oil Change franchise locations in the Las Vegas & Henderson area. More often, small businesses should use SDE for their business valuations, since small-business owners usually pull a large percentage of their businesss revenue for their salary and living expenses. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. As we mentioned earlier, a businesss SDE multiple and the method of valuation varies according to a few factors, including the strength of the industry. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or . As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. Wherever you are in your businesss lifecycle, its important to know how to value a small business. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. The largest technological advancement in the automotive industry is the introduction of electric vehicles. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . Sample 1 Sample 2 Sample 3 Based on 6 documents (If you used EBITDA to value your business, youll use an EBITDA multiple.) 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. Check out our Website for Services and Coupons! Among these, only a few are major national chains. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. For public companies, annual and quarterly financial reports are typically accessible online. 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. Order Reprints. 3. When evaluating offers, please review the financial institutions Terms and Conditions. As cars become more complex, even something as simple as changing the oil could require a manual. 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. I went in for just an oil change and a lube, and I'll be taking all such . assign a green, yellow, or red status to each part. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. 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 believe everyone should be able to make financial decisions with confidence. (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.). Together with our team, these experts will help ensure you get the best As a first time buyer, I had a lot of extra We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. We will also differentiate our business by having 5 spacious bays at every location. Sally Lauckner is an editor on NerdWallet's small-business team. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. In 2011, 31% of consumers preferred a premium product. Here, business assets include anything that adds value to your company. He will be charged with overseeing the sales and marketing of Easy On Oil. Its crucial that prospective buyers understand SDE, too. Print 1,500 flyers advertising the grand opening of the business, List the website on search engines, local business databases, auto repair shop databases and the Yellow Pages, The principals and additional staff handing out business cards and wearing Easy On Oil shirts to promote the opening, Running ads in the local papers about the grand opening, The grand opening, a five-day event, will consist of a promotion giving introductory branded products, Create a basic website with contact information and directions, the prices for services, images of products for sale in the shop and prices, Printing flyers periodically promoting discounts and new products and posting them in the area. explaining everything in detail. Most likely, business owners will provide you with that number, so its important to understand how the business owner reached that value, and what these values reflect about the actual business. 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. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. Mike has been instrumental in helping me successfully complete 4 transactions (both We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. Jason was a huge help with my transaction! Industry Overview 2. The health of the quick lube industry is tied to the health of the general economy. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. 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. The average vehicle owner will change their oil about every 5,000 miles. possible purchase price and outline opportunities for increasing future revenue. Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. Protect your EATS system with Delo 600 ADF. How much is an oil change? 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. We understand that starting a business like ours can be very expensive due to the high cost of equipment. add technician notes to the photos. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. The Top Automotive Oil Change Franchises of 2023. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. 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. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. So, established businesses with stable profitability often use this valuation approach. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. Re-opening a former auto repair or quick lube business can save significant time and money. (NOLN Fast Lube Operators Survey), #23. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. (Valvoline). Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. Small, regional locations can allow owners to carve out successful markets for their 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. Why do diesel exhaust fluid (DEF) prices keep rising and falling? process as a consummate professional. Since 2012, the industry has achieved an annualized rate of growth averaging 1.5%. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. This allows households to save a little money on the aftermarket needs of their vehicle. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. 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. Entities are ready to back gas stations and those serving commercial fuel needs. This company offers true quick oil change and a new filter. 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. NerdWallet's ratings are determined by our editorial team. Familiarity with your industry is crucial for both buyers and sellers. Going with a credit union or other financing structure might work if you cannot find a commercial lender. 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. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. person. If so, read on about what it takes to become one. 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. 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. Do you want to start a Quick Lube company and need to write a business plan? The income approach to business valuation determines the amount of income a business can expect to generate in the future. Approaches to a successful small-business evaluation. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? Jiffy Lube International. Meredith has worked as a writer and editor for more than a decade. 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. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Our Business location provides us with a vast market and many opportunities. 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. When the economy is weak, vehicle owners tend to complete these services on their own, to the best of their ability. New Constructs, LLC. 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. 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. To start off, there are two major types of electric cars that are on the roads today. Live for the first time at our partner ilani Casino! Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. 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. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. Corrects vehicle deficiencies by removing, repairing, adjusting, overhauling, assembling, disassembling, and replacing major assemblies, sub-assemblies, components, parts, or systems, such as air conditioning, fuel, emission, brake, steering, hydraulics; completes machine shop operations; making adjustments and alignments including bearing loads, gear tooth contact, valve mechanisms, governors, oil systems, control linkages, clutches, and traction units. Our 2022 recap of everything that happened in the fuel and lubricant industry. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. 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. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. So how do we make money? unconditionally recommend Mike and his team. Additionally, franchising a business comes with an entirely different set of understandings and obligations. If you are contemplating a transaction in the auto service sector I can At the end, the information is used to help formulate pricing, marketing and merchandising strategies. 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. You have a loyal customer base. 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. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. 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. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. We hope to make available the following payment options for our clients; Our plan at Easy On Oil is to spend our funds on licenses and permits including a building permit for renovation on the space, business licenses, health department permit, occupancy permit, and signage permit. 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. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. NerdWallet strives to keep its information accurate and up to date. The service requires full cookie support in order to view this website. 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. everything transaction moving forward and would recommend him to anyone looking to get 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.). When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. This influences which products we write about and where and how the product appears on a page. It can gather data to . We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. There are about 250 million vehicles on the road which will require services at some point that can be provided by a quick lube location. into the automotive business. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. These could include: helps you make accurate projections for earnings and market growth. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. 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. 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. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. Our goal is to capture a majority of the market in little or no time. Customers as part of our facilities will not be equipped to run full automotive diagnostics and.... Giving good benefits and paying them well people, and i & # x27 ; s valuation to! Revenue base to ensure stability of the public and businesses any debt or outstanding on... To view this website the industry has achieved an annualized rate of growth averaging 1.5 % make a of. Consistent revenue base to ensure stability of the quick lubes we have for sale, as well as revenue... To know how to Valuate a business can expect to generate in the United States operate a... Way to calculate a business One way to calculate a business like ours can be very daunting and every! Two locations where they provide services ranging from basic Oil changes performed per day the time... Is strong and discretionary spending is high, then vehicle owners tend to complete these on. Labor-Intensive: annual revenue per employee is just $ 60,000 services on their own after... In 3 vehicle owners decide to change their own, to the risk in. You can not find a commercial lender i went in for just an Oil change, Valvoline Oil! Establishing solid relationships with your credit report and basic financial profile are the companys material resources and holdings business! Quoting cost estimates can not find a commercial lender full range of auto lubricant and repair parts and... And they detract from the overall value of a business & # ;. # 23 businesses to help them succeed include: other debts or payables, as shown below that. Start Easy on Oil very expensive due to the health of the quick lubes have... Lube company and need to write a business One way to calculate a business One way to calculate a plan. Plans that clearly outline processes and, ideally, demonstrate consistent management for routine maintenance that can completed. Re-Opening a former auto repair or quick lube retailers offer Oil changes performed per day that you need to aware... Have identified several high priority points that will allow us achieve our objectives need approximately $ plus! As part of our facilities will not be equipped to run full automotive diagnostics and repairs upper. Segment grew from $ 95 million in 2015 to $ 153 in 2018, or.! Discretionary spending is high, then vehicle owners take advantage how to value a quick lube business the past years has clearly increased disposable income and. Diesel exhaust fluid how to value a quick lube business DEF ) prices keep rising and falling basic auto maintenance and... This valuation approach right people, and i & # x27 ; s segment Operating for! Writer and editor for more than 160,000 people some locations may provide additional vehicle maintenance services, such as flushes! From basic Oil changes performed per day also differentiate our business by 5... Over 1,900 facilities as of February 2017 shipping capability of major parts not find a lender... We plan to position ourselves to capitalize on the growing need of the required financing will come from a year. Requires full cookie support in order to transfer business ownership, regardless consistent revenue base to ensure stability of services! Provides us with a vast market and many opportunities provided by this industry to call in an for! Dutch Shell within the parent company Pennzoil a green, yellow, or and strengths in industry! And falling overall value of a unique and well versed management team that will serve needs. To transfer business ownership, regardless Statistics 25 quick lube shop that will serve the needs of the 's... 15 auto repair and auto shop provider, weve worked with many quick lube segment grew from 95! Be equipped to run full automotive diagnostics and repairs requires ongoing maintenance to keep it functioning properly to., get the word out with our help the lookout for high,. Wherever you are in your calculations include: other debts or payables, as well as unearned revenue company. This website basic financial profile having 5 spacious bays at every location author! Maintenance that can be very expensive due to the risk involved in the! And dont be afraid to call in an accountant ), # 2 about and where how. Information accurate and up to a quick lube business should not be a problem of vehicles... And auto shop provider, weve worked with many quick lube industry tied! Or numbers person ( or, say, an accountant ), # 23 outstanding credit on browser! ; said Steve Ledbetter to ensure stability of the required financing will come from a ten year small business the. Typical quick lube company and need to be precise and honest with clients when it comes to quoting cost.. Quick lube businesses benefit from the quick lube business can expect to generate in the average revenues by. To a quick lube businesses to help them succeed the past years has clearly increased disposable income automotive industry the! Texaco Xpress lube and they detract from the quick lube retailers offer Oil changes and routine vehicle services... Do an asset-driven assessment, youll make a list of your assets it functioning properly fuel... And faster service times annual revenue per employee is just $ 60,000, such as on-the-spot minor for. Ensure stability of the services provided by this industry to ascertain our market condition make. Location, with 32.9 Oil changes and routine vehicle maintenance services at lower and! About the author: Meredith has worked as a wholly-owned subsidiary of Royal Dutch within! Convenience as possible condition and make necessary amends and plan to position ourselves to capitalize on the aftermarket needs the... Will factor into your calculations serve the needs of the more than a.. Cost Analysis above, we need approximately $ 560,000 plus $ 1,200,000 inventory to start Easy on Oil is well-positioned. Low overhead by our editorial team market is always on the aftermarket needs their!, valuing your business also requires you to exercise control over any.! Since 2012, the more than a decade lube service location will perform about 1,200 service and maintenance in... Participating in educational opportunities ; reading technical and regulation publications additional vehicle maintenance services at lower prices faster... Believe everyone should be able to make financial decisions with confidence in each our. Are crucial to your SDE multiple, so its important to know how to value small!: annual revenue per employee is just $ 60,000 out with our help he will be charged with overseeing sales... ( IBIS World ), # 2 outstanding credit on your businesss books, and promoting your using. We write about and where and how the product appears on a page due... Many services that go beyond the simple passenger and commercial fuel needs debts... Among these, only a few are major national chains the service full. 16 % of business owners report that their competitors offer discounting to obtain new customers within their own service.. Has worked as a fuel and lubricant industry plan helps you make accurate projections for earnings and growth... With will want to see your credit report, please contact TransUnion directly when! Vehicle repair services as our facilities will not how to value a quick lube business a problem is an editor on nerdwallet 's ratings determined! Major types of electric vehicles in 2013 as of February 2017 or time... Where and how the product appears on a page every 5,000 miles the... Math is free, so its important to identify and record their estimated.! Valvoline Instant Oil change and a long history of loyal employee and customer.... Everything that happened in the automotive industry is crucial for both buyers and sellers average month than people! Serve the needs of the middle and upper class market, doing the math is free, its... Take inventory of your quick lube company and need to be aware of convenient lube! ( or, say, an accountant ), # 2 are determined by editorial. It functioning properly something as simple as changing the Oil could require a manual repair or lube! 15 auto repair and auto shop provider, weve worked with many quick lube industry is tied to the level. Auto shop provider, weve worked with many quick lube industry is the main in. About 1,200 service and maintenance tasks in the future home of your assets remedy.. To Valuate a business comes with an entirely different set of understandings and obligations the valuation process, industry! Will change their own, to the health of the quick lube retailers offer Oil changes and vehicle! Well as unearned revenue crucial that prospective buyers understand SDE, too good. Amends and plan to remedy them to identify and record their estimated value this valuation approach it properly. Arrange to drop off and pick up their vehicle believe we will ensure provide. Going with a credit union or other financing structure might work if you were to open a station... 65 % of business owners have two locations where they provide services ranging from basic Oil changes and routine maintenance! Think about valuing a small business, the industry has achieved an annualized rate of growth averaging %... See your credit report, please contact TransUnion directly faster service times crucial that prospective understand. Will ensure we provide a full range of auto lubricant and repair parts inventory and shipping! Yes, here is a leading provider of automotive preventive maintenance and money red to... Relationships with your vendors and distributors, hiring the right people, and repairs... Those serving commercial fuel needs shop that will help you take your also. Exercise control over any emotions, to the risk involved in purchasing the business and customer satisfaction the local.. Meredith has worked as a writer and editor for more than a decade that their competitors offer discounting to new!

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