Local Franchise Closed?

[Waxman]

looks like the only local oil change franchise may be having a rough go.

closed today apparently. pretty rough out there.

[bigleo48]

Hmmmm...it would be interesting to know the real reason. Sometimes you'd be surprised.

Having said that, a new 4 bay fast oil change (non franchise) opened next door to my wash last month. He spent a small fortune on it (land alone was $650k). In my head I started doing the math...thinking of wages, inventory, taxes, etc. He's gonna need to change a lot of oil to make money on that one. It's early, but the traffic count is none existent

I really feel that the whole LOF business is a rough one. First, it seems that the dealers have waged war on the lube places offering fast service and cheap prices on LOFs. They are also selling service packages with the cars that cover all the consumables. Some (like BMW) include it in every sale. WHen the computer says to bring it in, you do, they do the work and you never get a bill. All paid upfront.

Second, we may see a day soon when changing your oil will be a thing of the past. For example, the BMW I owned used full synthetic and only needed it changed every 24,000K And it was a performance 'M' car.

Hope my new neighbor does ok...I'm not so optimistic

Big

[Waxman]

believe it was part of 3 owned and 1 went down dragging along other 2.

hopefully it'll be back open soon under corporate management. hate to see it sit empty/locked/closed.

[Turbo]

Originally Posted by bigleo48

I really feel that the whole LOF business is a rough one. First, it seems that the dealers have waged war on the lube places offering fast service and cheap prices on LOFs. They are also selling service packages with the cars that cover all the consumables. Some (like BMW) include it in every sale. WHen the computer says to bring it in, you do, they do the work and you never get a bill. All paid upfront.

Second, we may see a day soon when changing your oil will be a thing of the past. For example, the BMW I owned used full synthetic and only needed it changed every 24,000K And it was a performance 'M' car.

Big

Big Leo,

I have a 3 bay Jiffy Lube attached to my 3/1 carwash. Your insights are generally correct. If I expanded I would buy an existing, poorly run location. I subscribe to the autocareforum and the AOCA forum (fast oil change) and learn about both businesses.

IMO the main issues effecting the oil change business are:

-longer intervals/better quality of cars and oils
-competition
-economy

A few comments:

-fleet is getting older and needs more mainteance (the longer intervals are skewed to the newer cars)
-we combat competition with very good service and a free $7 car wash
-we charge $35 an it takes 12 minutes and then you drive around for your free car wash.
-my employees look, act and are 'good guys' (no baggy pants, slang, infighting, etc.).
-I think at $35 it is a value.
-the JL is growing in both rev and cars (need 30% more before I call it a success)


Sell him discounted car wash's to boost both businesses. I give away my best wash as I am more desperate to gain customers. I think each wash costs me approx 75 cents but only 60% of people get it so my free wash costs me approx 50 cents per oil change.

I think you want him to succeed as I heard that "activity brings activity". I beleive it.

Thanks

Turbo

[Waxman]

sign on the door says 'temp. closed for renovations.'

[JustClean]

Governments all over the world are pushing for electric cars. Where does this leave the lube service? There will be still some time to do the present and older cars but long term I can't see any future in this business.

[JonKush]

Originally Posted by JustClean

Governments all over the world are pushing for electric cars. Where does this leave the lube service? There will be still some time to do the present and older cars but long term I can't see any future in this business.

I am an owner of a Quick Lube and we are building on an IBA( adding on a new building to our existing one ). It is going to be many many life times before we ever see the extinction of gasoline driven vehicles. The lube industry is not what it use to be but there will always be a need for us. It will be many life times before gasoline and diesel cars are not around any more.
Our shop is still very successful averaging 35 or so cars a day. When we add the wash it will increase those numbers without a doubt.
As an operator I can say there is still going to always be a need for Quick Lubes. They said years ago by the year 2000 we should be flying around in cars. The technology is there, just take a look at Moller Ent.. They produce one of these kind of cars but there is no release date anywhere in the near future.
We are looking to open more shops with car washes and dont see an end in sight.
Jon

[Waxman]

according to the door sign of the shop originally mentioned, they re-open feb. 12 after renovations. no visible renovations on building or premises are evident though.

[bigleo48]

I finally did get my oil change at the new place next door. $35 for my Honda. Wonder what the margins are on that. His business has picked up a little, doing 20 odd cars on a good day, less than 10 on a bad day. But 2 staff at likely 10/hr for 12hrs a day, he's still losing money

Car washing in January has been really good and Feb so far has been excellent also and I see the Lube owner stand outside on a smoke break watching the lineups at our wash. I'm sure he's wondering if he should have built a wash. Perhaps one day I'll sell him mine.

Big

[Waxman]

Well they missed their own re-open date of 2/12/10. I think it may re-open as a 'corporate store' onstead of an individual franchise operation.

They were at the wash the other day cleaning up some equipment.

I think the place was poorly maintained for awhile.