Annual shooting with fast lubrication, is it still viable?
I want to comment on the “Fast Lubrication Business” and the annual survey conducted by Auto Laundry News, one of the few industry magazines for the car wash industry. In this 2001 review, we see an increase in the number of places in it. But the industry leader is Jiffy Lube. We see variations on the topic, but we can safely say that the Jiffy Lube best adapted to the American public and their desires when it comes to oil changes.
This survey showed that the average customer would drive 5.7 miles to get an oil change. If 50% of customers drive 5.7 miles, and 80% of customers usually come from a three-mile radius to get a car wash, I see additional synergy. These car washes with oil lubrication centers are becoming even more attractive than the industry average. This is great news for those car washes that add oil bins, but they also take up space, and if they don’t sell properly, it won’t work. The study was quick to show that oil change facilities are best suited for middle-class areas, not high-end areas. They do not work well in low-income areas. It all makes sense. Free standing car washes were most likely where there is oil. It is also interesting that the minimum wage is not surprising, usually companies pay 8.00-10.00 dollars per hour. It makes real sense, and I believe that good help starts in this country at a price of $ 10.00 per hour on most metros and $ 8.00 in the countryside.
Only 23% of fast lubricants had a website. Only half had Internet access in places. The average employees were 5 full and 3 timers. Fortunately for the image of this industry, 74% had a special form. The average store had 3 compartments, not enough to make volume, if the marketing market has adequate marketing and marketing at the local level. The median income was $ 32 per car. This is an awful lot of upselling, since the average advertised price, which I noticed, is around $ 19.99. Less than 30% were open on Sundays? Bad mistake, because there is no time to change the oil and wait in line for most Americans. The average monthly gross was $ 2400.00 per month per bay?
This shit is not even a viable business, these people are wasting their time. Think about it, do you have the cost of oil and filter too, and labor? Forget the news. I doubt the viability of the entire oil change industry. The largest franchisee Jiffy Lube in the country with 180 units was excluded from the NASDAQ, and at the same time it was another well-known car care and lubricant company. I like Kwik-Lube, and I feel that they are doing it right, but also doubt the profitability of such an effort, seeing these results and the costs of building the building and the time it was created. One good thing that oil bays are going to be for them is a resale, but as the consumer dollar gets tighter and credit card debt gets higher and the fall rates exceed, when this additional fee will be paid and sell cash. form?
The industry is still expanding, and new market participants have damaged existing divisions, and I ask a question about the saturation point, not about necessity, but about desire. No one wants to spend money on the oil changes they need. People buy what they want, satellite TV and beer. Not what they need, so I see a problem with the problem of frequency problems, and people wait 5-6-7 thousand miles between changes. Therefore, I believe that if the oil inlet bay is no longer tied to another reason in order to frequent the site, it will soon be in desire. The survey also showed that 93% of OIL LOVERS FILLS ADVERTISING TO GET THEIR CULTURE? WHAT FOR? We do not advertise, word of mouth and happy customers advertise us. There you stand again.
Also, 60% of respondents said that competition is discounted. HMMM? You have high labor costs, frequency decreases, new car technologies on the horizon, the cost of oil going to the big guys, and throwing a price war? I see a problem, as ill-thought operators leave objects for sale and entry to the market. By eliminating the object and going to a mobile phone with an existing customer base, we can say that a mobile truck repair company that can provide joint services and fleet services could win these other companies as they work on the glut of mail coupons and announcements phone book and no websites. Many companies do not follow the changes in demographic data in their places and the cost of renting or property and are unable to sell or borrow more because of their disgusting profits. And what can you convert and change oil? Close the opening for the tire shop? What happens when a hydrogen element appears and no one changes the oil. Can you convert a filter type operation? Not so often when the tires and wheels are shifted, and the modular car will land in the opening of the bay. We have a solution, and we can beat them in almost all aspects. Some consultants said; "A bouquet of mannequins copies each other."
Listen to this part of the survey, the advertising dollars spent, this is where respondents said they are advertised; TV 15%, Direct Mail 51%, Radio 38%, Newspaper 35%, Bill Boards 18%, Yellow Pages 53%, others only 13%. Scary, everything that costs money, and everyone works in red, copying each other. This is what happens when people can no longer think and cannot adapt and conduct business at the speed of thought,
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81% of respondents said they would honor competitor coupons? Whatever it was, why print them. Let everyone else spend money and take it? 80% said they tried to use discounting to attract customers from other places for lubrication. Boy, it sounds like a carpet cleaning industry.
Distribution of labor costs. 10% of rent or property, 3% of facility maintenance, 26% of labor, 30% of materials, 4% of utilities, and many of them expect a doubling, while some in the West have experienced a tripling. Insurance 4%, and that is expected to grow, and some said 8%, Customer claims for damage 1%, this is sorry, advertising 10%. Want to add them for me. Why do they do it?
The average cost of new facilities; Land $ 206,000, Upgrade $ 505,000, New Equipment $ 36,000. Wow all that little or no return? Average number of participants within a radius of 10 miles? 36% said that 3, 19% said two, 19% said 5.7% said 5 or more. How can you invest such money in every place when we can build a pair of units for a total of $ 65,000 and approximately equal to the number of potential vehicles for servicing? In addition, with AAA building replacement plants and the acquisition of Wal-Mart, the competition will be bloody, and it is a lot of money to invest in a business with an uncertain future. Not a good bet if you were a bet.
We really like this industry, because we know that the industry does not, and we can hit them, because they missed the boat. We have seen several companies looking for ways to change the oil on the water for yachts. What is even better is that they all missed the boat at the same time and are fighting ashore for several small boats to get a ship that leaves the harbor. Who will survive this oil war? The one who buys services to the client, they, as the client, want to be served.
