| The fact that 28% of all fast Lubes operate some | | | | than the stand alone Fast Lube. 38.1 cars as opposed |
| type of carwash is intriguing indeed. Of course many | | | | to 42 cars? Why? Space, up sell, confusing signage, |
| start as car washes first and then they have been | | | | too busy to want to drive in to what looks like long |
| approached with Oil Company Brand Incentives. I.e. | | | | lines. Most lube bays can do a car in about 11 minutes, |
| You promise to use only our oil, advertise our banners | | | | mobile is more on average especially with drive times, |
| out side and buy X-amount of oil per year and we will | | | | although you do not have the debt service of average |
| give you a $30,000 grant on a five to ten year | | | | $225,000 in building and equipment to repay. A fully |
| contract. Or use x-amount of our oil in five years and | | | | operation new van such as a GMC Savannah is only |
| we will give you a five year $100,000.oo loan interest | | | | $30,000 with perhaps $8,000 to $15,000 in equipment. |
| free. These incentives are nothing to shake a stick at, | | | | Mobile oil change is one solution as car washes seem |
| and you can make money from a fast lube so why | | | | to make more per square foot doing auto detailing and |
| not advertise it, bundle services and ace your | | | | express detailing than with oil changes. Can a car |
| competition within the ten mile zone where 80% of | | | | wash with it's large customer base support a mobile oil |
| your customers are drawn from. Even more | | | | change business? |
| interesting is that oil fast lubes draw from slightly | | | | Still efficiency is a real issue when comparing that to a |
| further away than car washes typically, so you win | | | | building with everything ready to rip from the second |
| twice. | | | | the customer pops that hood. Most car washes |
| The average ticket at a typical fast lube as discussed | | | | estimate the equipment for both a lube and a car |
| in the Industry trade journals varies from $22.50 to | | | | wash (laser type) to be in the neighborhood of |
| $27.17 from the articles I have read, with no personal | | | | $305,000 average. So where do we get these |
| opinion on the matter myself, since I believe | | | | numbers, from magazine articles and surveys. Should |
| seasonality, car sales in the area from previous years | | | | we trust these numbers without doubt? No, because |
| past and competition all play a much different and | | | | each market is different, every street is different, |
| more important factor, but with that said, let me | | | | every competitor in every market has different levels |
| continue. Realize in a perfect world the figures could | | | | of goodwill, referrals and reputation. Labor supply costs, |
| legitimately be used by politicians, liyars and clergy | | | | building costs, planning commission add-ons, etc. |
| across the board. Stand alone fast lubes are said to | | | | Everything is different everywhere, but the numbers |
| take in on average higher ticket prices averaging $2.00 | | | | here are averages from those participating in surveys |
| perhaps because customers are more believing when | | | | from various markets. So they are a decent starting |
| a mechanic only facility suggestively sells them wiper | | | | point in your research and mine. Everyone needs a |
| blades, fluid flushing or belts. Who knows, but it does | | | | target to beat, question is do you want a Wal-Mart to |
| stand to reason that this figure is accurate. The | | | | try to beat? Adding an oil change facility to your car |
| average cost for an oil change is $8.55 in real costs on | | | | wash if you are near a Wal-Mart, which will do the job |
| filter, oil, etc. | | | | for $12.95 doesn't exactly leave you such a lot of |
| Carwashes with lube bays do less volume on average | | | | room for profit if you try to compete on price alone. |