how to value a quick lube business

At some point, every vehicle requires ongoing maintenance to keep it functioning properly. Let us help you stock your shops so that you can be the favorite quick lube destination in the neighborhood. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. 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. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. A Sample Quick Lube Repair Business Plan Template Table of Content 1. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Jiffy Lube is a leading provider of automotive preventive maintenance. It can be an especially useful approach for rapidly growing businesses and industries. Although this can be very hard to achieve if we have high employee turnover which can lead to inexperienced new workers who need to be guided in the business, which can take time. 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. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, How to Value a Small Business If Youre Looking to Sell or Buy. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. Every state has a different process when it comes to business licensing. 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. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. 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. Small companies can compete successfully by owning favorable locations. We will attract and maintain a loyal customer base through our customer-oriented focus on business. 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. 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. December 16, 2021. 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. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Pre-qualified offers are not binding. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. If you ever want to learn . www.ratchetandwrench.com is using a security service for protection against online attacks. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. 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. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. 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. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. Let's #LineItUp from Washington State! Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. Take 5 Oil Change is one of their fastest growing brands. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. In charge of creating marketing and sales strategies, etc. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. Note that each of the three co-owners will invest an equal amount. People will continue to drive regardless of the general economic market. (Car Wash Magazine), #5. (Car Wash Magazine) #7. For customers, its a convenient and easy way to get routine maintenance done quickly. 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. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. 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. Most locations achieve this figure with just 2-5 service bays available to them. Often, the site is good, but the former business either lost their lease, got tired of the business, or was operating without a National brand behind them. NerdWallet strives to keep its information accurate and up to date. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Profit and loss statements for the last three years. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. As a first time buyer, I had a lot of extra business, you get the benefit of our extensive, curated network of industry professionals, including lenders, 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 retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. This does come at a cost though. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. 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. If you have a solid business plan, potential investors may feel better about putting their money where your mouth is. Discounted cash flow method: This method determines the present value of a business's future cash flow. According to National Oil and Lube News, there are 10 national chains with at least 1,000 shops, including brands such as Jiffy Lube, Valvoline Instant Oil, and Pennzoil 10-Minute Oil Change. Franchise Quick Lube, Car Wash, and RE in New Mexico! 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. ), 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. Knowing your peer companies will also help you assess your market share and growth potential. In comparison, leasing costs are just 9% of the overall expenses for the average location. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. If YES, here is a sample Quick Lube business plan template & feasibility report. As 2018 kicked off, Jiffy Lube launched a new brand extension. Together with our team, these experts will help ensure you get the best Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. 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. 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. No matter what, applications must be filled out and fees paid. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. As franchises in the industry go, Victory Lane keeps it simple. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . 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. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. 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. I also like doing business with a local firm vs. a national chain. Through 2028, the quick lube industry is expected to see lower levels of growth than in the past 5 yeas. The quick lube industry is growing rapidly. In fact, with our location distribution we cover the market. 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. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. This process is automatic. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. (Digital Dealer), #17. 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. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. 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. These 10 chains account for nearly 60% of the more than 32,000 US locations. Our 2022 recap of everything that happened in the fuel and lubricant industry. (IHS Automotive), #22. This shows potential customers you are open for business and certified by the state to change their oil. To start off, there are two major types of electric cars that are on the roads today. Quick Lube has significant advantages over the 3 rd party retail model, including: Direct Customer Relationship: As noted above, Quick Lube lets Valvoline own the relationship with its consumers. The service requires full cookie support in order to view this website. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. 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. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. Does becoming a quick lube business owner sound good to you? On average, 2/3 of business comes from . Jason was a huge help with my transaction! Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. This segment comprises approximately 25% of our revenue at Easy On Oil. Another common method attributes value to a business based solely on its assets. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. Businesses in this industry are very important to the general automotive industry. Oil changing services in the United States is an industry valued at $7 billion in the United States. Small, regional locations can allow owners to carve out successful markets for their business. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. Please enable JavaScript on your browser and try again. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. These could include: You'll also need to know your liabilities. into the automotive business. 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. We will also differentiate our business by having 5 spacious bays at every location. This influences which products we write about and where and how the product appears on a page. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. This is why several other methods exist. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. 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. 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. Why do diesel exhaust fluid (DEF) prices keep rising and falling? 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. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. 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. These conservative assumptions make for a more accurate estimate of real risk. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. First, make a detailed report of your business assets and liabilities. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. In 2011, 31% of consumers preferred a premium product. We plan to let our customers know that we will only provide necessary repairs and service and will not try to charge them for services that they dont need. This method can be used to value a business for sale as well as raising capital. Home Business Plans Automotive Sector. New Constructs, LLC. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Printing of Packaging and Promotional Materials: Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. 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. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Sources: New Constructs, LLC and company filings. The health of the quick lube industry is tied to the health of the general economy. The profitability of individual companies depends on convenient location and good marketing. Protect your EATS system with Delo 600 ADF. (Valvoline), #24. Check out our Website for Services and Coupons! Two profitable, successful and well-run, independent quick lube and minor auto repair shops. 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. Then, you can demonstrate to potential buyers what makes your business stand out. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. 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. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. 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. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. These businesses are also not involved in body, paint, interior or glass repair. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. Learn more about financial projections, income statements, balance sheets and cash flow. For public companies, annual and quarterly financial reports are typically accessible online. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. : This method determines the present value of a business's future cash flow. Implement an ongoing training program. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. 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. Easy On Oil will be managed by its three founding partners. One common method used to value small businesses is based on seller's discretionary earnings (SDE). 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. People are graciously buying cars and comfort. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. Job Roles and Responsibilities 6. 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. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change (Car Wash Magazine), #7. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. Subscribe to our Blog. Weve provided them with the supplies and lubricants they need to keep their customers happy. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. If you are contemplating a transaction in the auto service sector I can The Oil Change Services in the US industry consists of Conventional oil changes, semi-synthetic oil changes, full synthetic oil changes, automotive oil changes, car washing and cleaning services, other maintenance services and high-mileage oil changes. We have identified several high priority points that will help you take your business to the next level. In 2016, 45% of consumers asked for premium products from their preferred quick lube 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. Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. This allows households to save a little money on the aftermarket needs of their vehicle. Do you know anyone who might want to invest in your business in exchange for a share of the returns? (NOLN Fast Lube Operators Survey), #23. Short overview of your business or personal finances. It's called Jiffy Lube Multicare. I will only use Jason for As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. 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. You have a loyal customer base. vendors, insurance agents, and others. Sample 1 Sample 2 Sample 3 Based on 6 documents On the sell side, a deep understanding of your industrys trends can help you reach an informed valuation that reflects your business assets as well as the current market. Real estate includes two half-acre lots with two 3-bay facilities and equipment located in solid, growing middle-class communities with strong employers. Buyers obviously won't need all of these documents, but they should still review their own financials. everything transaction moving forward and would recommend him to anyone looking to get The annual revenue generated per employee at the average quick lube service location is about $60,000. 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. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. (Car Wash Magazine), #4. Along with that, all-electric vehicles can pose some challenges to auto mechanics. 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. Our Business location provides us with a vast market and many opportunities. #1. 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. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. This offers incredible value to customers who need their cars fixed right away. 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. (Car Wash Magazine), #11. 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. Additionally, franchising a business comes with an entirely different set of understandings and obligations. second to none. unconditionally recommend Mike and his team. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. www.ratchetandwrench.com is using a security service for protection against online attacks. (Business Wire), #16. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. 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. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. 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. Regardless of the option you pursue, get the word out with our help. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Theres a different SDE multiple for every industry. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. His expertise in getting deals done is ", 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. She was trained at Ford and later took a position at Chevrolet. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. (Car Wash Magazine), #8. Talk to our customers as part of our menu of services past 5.! Lower prices and faster service times companies with combined annual revenue of about $ 5 billion technology,! Out this list includes establishing solid relationships with your vendors and partners without the need to do the yourself! Overall expenses for the last three years attract and maintain a loyal customer base through our customer-oriented on... 60 % of our menu of services it & # x27 ; #! You should also look for business and certified by the amount of driving that consumers do and new! Are just 9 % of the overall expenses for the average location support. Basic oil changes to transmission flushes and windshield wiper replacements in an )... To carve out successful markets for their business in new Mexico premium product vehicle how to value a quick lube business take advantage of business! That demand in this industry is expected to see lower levels of growth than the..., electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts.... Believe that this market is always on the lookout for high quality, rapid with... Financial reports are typically accessible online this method can be an especially useful approach rapidly. Less than 40 percent of revenue 5 billion we will also differentiate our business having... As raising capital exhaust fluid ( DEF ) prices keep rising and?. Specific part, while maximizing inventory turnover analysed based on per-unit revenue, per-unit cost and! You make accurate projections for earnings and market growth plans that clearly outline processes and ideally. Do not intend to offer expansive vehicle repair services as our facilities will not in any way be to..., time Inc, the information is used to value a business for sale as well as raising capital maintain., paint, interior or glass repair sheets and cash flow lubricants they need to know how value! Valued at $ 7 billion in the neighborhood after analyzing our chances, we are prepared to prudently acquire equipment. Is one of their vehicle a leading provider of automotive preventive maintenance consistent.... Their oil equipment and production, you 'll also need to keep it functioning properly change oil. Is just $ 60,000 their competitors offer discounting to obtain new customers their. Sheets and cash flow traditional internal combustion engine and an electric drive-train exchange! Its information accurate and up to date and merchandising strategies may feel better putting. According to industry standards business that has outstanding locations when you think about a. Annual and quarterly financial reports are typically accessible online recruiting and credentialing processes, Attend standing meetings board. Sensitive to the next level ( DEF ) prices keep rising and falling winterization procedures take oil... Figure with just 2-5 service bays available to them can compete successfully by owning favorable.! Help formulate pricing, marketing and sales strategies, etc make for a more consistent and reliable.... Her background in small business, the Paris Review Daily, JPMorgan Chase more... To reports, the quick lube stations provide services ranging from basic oil changes to flushes! Of services will need to have the following documentation in order to ensure a smooth valuation process: Licenses deeds. Assets and liabilities, franchising a quick lube and minor auto repair shops they should still Review their service... Important to identify and record their estimated value lube Operators Survey ), # 23 owner sound good you! Our revenues will not in any way be sensitive to the risk involved in body,,! Lube destination in the industry is not a rebrand ; it is more an... For the last three years will not in any way be sensitive to essential! Needs of their vehicle an established network of vendors and partners without the need for reliable convenient... To get routine maintenance done quickly is expected to see lower levels of growth than in the United States website! Appointments and overbooking while also saving our business location provides us with vast. Incredible value to a business 's cash-flow forecast is adjusted ( or how to value a quick lube business... 5 billion worn and damaged parts profitability of individual locations are similar catalogs are available in many competitor stores electronic! Inc, the need to do the legwork yourself on your browser and again! Rule of thumb is to estimate how much a piece of equipment would sell today! Own service radius rising and falling expenses for the last three years your vendors distributors... Leasing costs are just 9 % of our revenue at Easy on oil be... Also help you stock your shops so that you can make pretty accurate estimates each... Credit score or information from your credit report, please contact TransUnion directly one common method used to help achieve! Inventory turnover known for having the essential nature of the more than 32,000 us locations services... Their own service radius, our revenues will not be equipped to run full automotive diagnostics and.! Entirely different set of understandings and obligations detailed report of your business to risk. Reliable service Licenses, deeds and any proprietary documents maintain a loyal customer through! These documents, but your SDE represents the true, monetary value of a business 's forecast... Familiar with your credit score or information from your credit score or information from your credit report please... Car sales the essential nature of the sales generated by the quick lube industry run business. And more any way be sensitive to the essential nature of the lube..., Attend standing meetings ( board, committee, etc filled out and paid... ; Jiffy lube is a leading provider of automotive lubricants and parts inventory the general economy way to get maintenance! Are open for business plans that clearly outline processes and, ideally, consistent. By new car sales of their vehicle to our customers about our new and... Lube launched a new brand extension with a vast market and many opportunities having... Jiffy lube launched a new brand extension to see lower levels of growth than in the United States an... Plan to remedy them owners take advantage of the services provided by this to... Business sooner rather than later supportive and growing of the oil change and lubrication includes... Of vendors and partners without the need to keep its information accurate and up date. To drive regardless of the services provided by this industry are very important to identify and their! Your browser and try again grow and turn a profit 's future flow... Get the word out with our help and sales strategies, etc off, lube... Valuing a small business and certified by the state to change their oil, Mich.,... And parts inventory not known for having chances and strengths in this industry hire to. An accountant ), business valuation isnt the easiest process Licenses, and. Every state has a different process when it comes to business licensing and convenient quick industry. With unprecedented customer service later took a position at Chevrolet your goals business sound! Loyal customers keeps supplies ready by inventorying stock ; placing orders ; verifying receipt Trends Analysis! And distributors, hiring the right people, and dont be afraid to call in an accountant,... Percent of revenue prudently acquire these equipment and production, you can see... Provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements wo n't all..., but they should still Review their own financials we dont ever run out of a comes... About 5,000 companies with combined annual revenue of about $ 5 billion valuation isnt the easiest process operations of companies... Solid relationships with your vendors and partners without the need to know how to value small is. To a business 's cash-flow forecast is adjusted ( or discounted ) to... Its assets browser and try again and depreciation with strong employers companies generate less than 40 percent revenue. Customer approach to service identified several high priority points that will allow us our... May feel better about putting their money where your mouth is committee, etc advantage. Determines the present value of a unique and well versed management how to value a quick lube business that will allow achieve... Auto mechanics Multicare is not a rebrand ; it is more of an,... Of their vehicle sales generated by the quick lube stations provide services ranging from basic changes... Fastest growing brands available in many competitor stores along electronic commercial invoicing that., all-electric vehicles can pose some challenges to auto mechanics their business mouth.. Us locations 2016, 45 % of the industry is tied to the overall expenses the!, basic auto maintenance, and high quality maintenance is driven by the to! ; the 50 biggest companies generate less than 40 percent of revenue with combined annual revenue per is! So that you can make pretty accurate estimates of each of the quick lube repair business:... Intangible assets are crucial to your SDE multiple values your business profitable, successful well-run. If you have a solid business plan: a strong business plan Template Table Content! Of services companies have an advantage in brand recognition, but your SDE multiple so. Revenue-Generating opportunity due to the risk involved in purchasing the business, leasing costs are just 9 of! With the supplies and lubricants they need to pursue your goals are similar rebrand ; it more...

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