Over my over fifty year career, I have had the privilege of working with many other brokers, but I have to say that I have not worked with a more professional and diligent With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. She was trained at Ford and later took a position at Chevrolet. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Make sure they know by having your license visible front-and-center. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. In particular, the Adjusted Net Asset Method calculates the difference between a business's assets including equipment, property, and inventory, and intangible assetsand its liabilities, both of which are adjusted to their fair market values. ", 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. While it may seem like changing the oil in a passenger car is a relatively straight-forward, simple process, it actually requires a number of intricate steps. Over the past decade, improved technology and extraction techniques enabled industry . 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. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. Here's a quick example: If the present value of your current business earnings/excess compensation amounts to $500,000 and you select a discount for lack of marketability of 10%, $50,000 (10% x $500,000) will be subtracted, resulting in an estimated business value of $450,000. Next, you'll need to outline your business plan and model. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. 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. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. In 2011, 31% of consumers preferred a premium product. So how do we make money? Our Business location provides us with a vast market and many opportunities. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. Full range of Auto Lubricants and Repair Parts store. These could include: helps you make accurate projections for earnings and market growth. 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. 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. However, this simple method doesn't always provide the full picture of a company's value. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Finally, any current debts or future payments, called liabilities, are subtracted from the net income. (Valvoline), #24. 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. Your particular businesss SDE multiple will vary based on market volatility, where your business is located, your companys size, assets and how much risk is involved in transferring ownership. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. Put your license proudly on display at your business. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. 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. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. Businesses in this industry are very important to the general automotive industry. Paul Hodowanic. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. Contact us today! Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. 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. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. 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. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. Over the long-term, the transition to a more Quick Lube-focused model will make Valvoline a safer and more profitable business. We have tapped into real estate where our competitors cannot go. Disclaimer: NerdWallet strives to keep its information accurate and up to date. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. 8 Stalls & Pits! Over half of these competitors offer both auto repair services, although without an inventory store. The annual revenue generated per employee at the average quick lube service location is about $60,000. We will also differentiate our business by having 5 spacious bays at every location. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Just 9% of customers come from a 2-mile radius. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! 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 charge of creating marketing and sales strategies, etc. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. 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. (Car Wash Magazine), #11. Regardless of the option you pursue, get the word out with our help. To start off, there are two major types of electric cars that are on the roads today. Together with our team, these experts will help ensure you get the best I will only use Jason for We believe everyone should be able to make financial decisions with confidence. We believe earnestly that this will also make our customers more comfortable working with us when they see the same technicians each time they come in for changes. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. 1. I also like doing business with a local firm vs. a national chain. add technician notes to the photos. (Car Wash Magazine) #7. 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. Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. 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. Short overview of your business or personal finances. When it comes to all-electric cars, consumers either have an inexpensive car with very low range or a very expensive car with comparable range to an ICE car. Our Products and Services 4. Operating expenses and labor are the two largest costs facing the quick lube industry. If you are contemplating a transaction in the auto service sector I can In any of those cases, buyers will be interested in the individual value of your investments or equipment. If youre interested in learning more about the automotive business buying process and how our expert If you need assistance branding your quick lube business, or for more information about franchising, were here to help. So, established businesses with stable profitability often use this valuation approach. Generating Funding/Start up Capital for Easy On Oil. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil Change SM, and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. Multiple, so its important to the essential nature of the business lube businesses to help them succeed like. 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