Hi, New Here Need Quicklube help

[hweaton]

I am looking at opening up a new oil lube shop in a town in eastern Wyoming. There is one other shop here in town that does changes. They have two bays with lifts, no waiting area (it is a corner Sinclair station), and sometimes are backed up for days.

The nearest dealerships are 57, 59 and 80 miles away respectively, and the nearest Wal-Mart is 80 miles away. So the opportunity is there.

So the shop has three bays. Two of them have lifts, I know, I know, the argument of lifts to pits, but that is what is there. The third bay appears to have been area for tires in the past and for doing manual car washes when a dealership used the lot as an extension of the dealer 57 miles away before they pulled out.

Currently in it is a tire mounting machine, tire balancer, an huge air compressor hooked up to a pipe to run to all the bays so hose attachments can be hooked up to it. There is a nice storage area for air/oil filters and packaged oil. There are numerous peg boards in places with hooks for hanging tools and everything else.

The front office area where the salesmen used to sit, mind you it is not a showroom, has been re-tiled. It has nice windows and a new bathroom adjacent to it. I was thinking of having a little area off to the side where the door leads to the shop for a register area. Otherwise the rest of the office area would contain two couches and a love seat with a coffee table and all of them on a rug facing a television with cable. I was thinking of providing wireless internet for people to access while they wait also.

The lot is good size. Additionally, I was thinking of allowing people in town to consign their vehicles there and charging them a part of the sale price for doing so and seeing if one of the dealers would like to do so also.

 

[hweaton]

As of right now, I am looking at needing more air hoses, some tools specifically impacts and sockets, tire racks, that nifty multi oil plug wrench from Sears, and two oil lift drains.

My uncle runs a shop in Arizona. I know he goes to Wal-marts to get all his oil in the five gallon containers. He doesn't do bulk. I am still trying to think whether bulk or doing it similar to his process would be better.

He told me he has a commercial account through Auto-Zone for all his filters, oil and air, and the nearest such dealer to me would be across the street at a Car-Quest. The next nearest type dealer would be a NAPA 57 miles away. I just don't know what to think about all that at the moment. The customer service I have experienced at the Car-Quest has not been the best, and concerns me.

They had a system set up to drain the used oil out of the back of the building into 55 gallon drums, and I'm going to see how that is set up and if it still works. But eventually I would like to re-use the used oil to heat the shop. But that would be some time away yet.

Any other suggestion, tips, pointers, observations?
If so, thanks!!

 

[hweaton]

Also, I will try to post pics when I can for kicks.

 

[hweaton]

Also, is there any specific business plan that anyone can recommend for me? Thanks.

 

[JonKush]

As of right now, I am looking at needing more air hoses, some tools specifically impacts and sockets, tire racks, that nifty multi oil plug wrench from Sears, and two oil lift drains.

My uncle runs a shop in Arizona. I know he goes to Wal-marts to get all his oil in the five gallon containers. He doesn't do bulk. I am still trying to think whether bulk or doing it similar to his process would be better.

He told me he has a commercial account through Auto-Zone for all his filters, oil and air, and the nearest such dealer to me would be across the street at a Car-Quest. The next nearest type dealer would be a NAPA 57 miles away. I just don't know what to think about all that at the moment. The customer service I have experienced at the Car-Quest has not been the best, and concerns me.

They had a system set up to drain the used oil out of the back of the building into 55 gallon drums, and I'm going to see how that is set up and if it still works. But eventually I would like to re-use the used oil to heat the shop. But that would be some time away yet.

Any other suggestion, tips, pointers, observations?
If so, thanks!!

It looks like you want to stay as an Independant. I would still look in to different oil companies to see who can give you your best options. I have a Valvoline Express Care. There oil is expensive but I sell it knowing it is one of the best oils out there. My changes start at $34.99. I dont know what they start at in your area but you must be competitive to be succesfull. To purchase oil by the bottle or 5 gallon bucket is way too expensive. You can be talking over a $1.00 a gallon or more compairing bottles to drums or bulk. Another way to look at things most cars do not take exact quarts so you will start to have 1/2 and 1/4 bottles everywhere. Take that $1.00 (or more) times how many cars you do a year (just say 10,000) you can put over $10,000 back in your pocket just on oil.

 

[JonKush]

Now your filters ( oil and air ). Call Service Champ. They should be way cheaper than any local parts store. I am talking Dollars not pennies. They can set you up with all the most common oil and air filters you need. I would stay away from TVI filters they are very inexpensive but you get what you pay for. There is so much more info I can keep going and going.

As for the TV and Internet that seems ok. I would not put a clock anywhere that a customer would see. Its a Quick Lube and they will stare at the clock. My POS system (ISI) has a counter on it. It starts counting from the moment the car is entered in the system. Alot of times the customer will make up all kinds of stuff like they were there for 20 minutes and then I show them the screen and it hasnt been 10 minutes yet.

If you like you can ask me what ever you like.

Jonathan

 

[hweaton]

OK, I hear you about the oil. I am meeting with the local NAPA rep Tuesday regarding bulk oil and the filters, belts and such.

I was looking at the Service Champ web-site. I like what I see except for the time it takes to get resources. If I could be sure I could keep the proper amount of resources on hand, it seems like that would be a viable option. Unless NAPA gives me a discount for carrying their oil as my house oil along with their other products.

Jonathon, are you willing to help me refine my service that I will offer? I will send you a list and if you would be willing to review it, that would be great.

Next I need to find a local tire distributor.

 

[Turbo]

new to oil change biz

hweaton,

a few thoughts:

1. join AOCA (american oil change association) and researchl. It costs aaprox $300. In your situation it is not an option to not join and research there.

2. bulk is much cheaper (as already noted). If you save a $/gall that is only $20/day if you are doing 20 cars/day. start with a mix of drums and bottles.

3. if you need to have an oil brand (and you probably do if you are not a Jiffy lube, Penz 10, Valvoline oil express, etc) then get one. Check what oil everyone uses in your area and consider that one. Put that brand on your sign. It will help with credibility. carefully consider not signing an oil agreement. An oil agreement is where you agree to pumping only one product for 85% of your customers, you may get some $ BUT the oil company dictates the price. You are at their mercy. Research this on AOCA. You could try carrying many brands and a private label oil. team up with a distributor that can help you. IMO (and the 50+ operators, sales people, engineers, etc that I have asked) any major brand that is API certified is apprx the same. As is the private label stuff if you trust the source(hard to know who to trust)

4. Get a 1 year lease with a couple 1 year options and then a few more 5 year options

5. Go to AOCA show in vegas. If you cant fly then drive and camp or sleep in your car. But GO!

 

[Turbo]

new to oil change biz

6. You will probably spend over 20k in improvements in the first 3 months. I bought a beat down Jiffy lube 2 years ago and am still spending. But have increased car count 50% and revenue over 100% (so it can be done). I have a lot of competition from general mechanics but I am in a very densley populated area.

7 . You can probably open the shop with two people. your lower bay tech is critical. This is where 95% of your risk is (especially if you are working upper bay)

8. If you have never worked in a fast lube then go work in one for a month. I know of an operator who had 3 other detail businesses but worked as a tech for about two months about 6 years ago. He now owns 50 Jiffy Lubes.

That's all for now

Turbo

 

[JonKush]

OK, I hear you about the oil. I am meeting with the local NAPA rep Tuesday regarding bulk oil and the filters, belts and such.

I was looking at the Service Champ web-site. I like what I see except for the time it takes to get resources. If I could be sure I could keep the proper amount of resources on hand, it seems like that would be a viable option. Unless NAPA gives me a discount for carrying their oil as my house oil along with their other products.

Jonathon, are you willing to help me refine my service that I will offer? I will send you a list and if you would be willing to review it, that would be great.

Next I need to find a local tire distributor.

I will be more than happy to help you out. Turbo made some great points. A Branded Oil will always go over better that a non Brand. I deal with Napa for filters that I either run out of or just dont carry BUT they are expensive. A company like Service Champ can set you up with every filter you will need, Oil, Air and Fuel. Plus they have great pricing on Wiper Blades. As for Oil I would find yourself a good national brand like Penzoil, Quakerstate, Valvoline, Mobile 1, ect. I would try to stick with one but you should always keep some Mobile 1 around for the few people that will only put what there oil cap says and charge them accordingly. Like a new Dodge takes a 0/w40 on some of the new Hemi's. I try to convert everyone over to Valvoline but some people want what they want.
Send me the list you compiled and I will give you my input.
expresscarejon@bellsouth.net
Good Luck,
Jon

 

[hweaton]

Thanks Jon. I will get them off to you in the next day or two. Been busy trying to get the paperwork for the LLC done and getting the EIN, getting a tire distributor, yada yada.

 

[hweaton]

Well, just to let everyone know, I have been up and running since the 19th of Jan. It's progressively gotten busier and busier. So far things are great, and it's really taken off.

 

[MEP001]

How did you decide to go as far as supplies? Did you ally with a major brand supplier or are you "generic?" How is your decision working for you so far?

 

[hweaton]

Tires, I got two distributors. ATD being one, of course, another one a local/regional company based out of Denver called Foree Tire. Lubricant distributor out of Scottsbluff, NE. Got 10/30, 5/30, 5/20, and 15/40 55 gallons of each in 70 gal airboys. Filter program through O'Reillys currently, thinking about switching over to my oil supplier for them along with and keeping O'Reillys for air filters only right now. The oil dist carries Mobil filters, but I get Wix in value packs labelled Pro-Tec through O'Reillys, so yeah, I'll figure it out soon.

edited to add I've already had to order my second 55 gallons of 5/30 the other day.

 

[Jerad]

What type of services are you offering at your store? Transmission flush? Radiator? Power Steering? Brake?

I've noticed that when purchasing equipment, I consult with my techs to see which ones they like the most. The more your techs like the equipment, the more likely they are to sell more services.

 

[Semi-retired]

I have been operating my Valvoline Express Care for 3 years I have been able to get the valvoline training to my location 2 times and get to see my rep about 3 times a year, great service from valvoline. HA!
I purchased this store with management and money problems but within the first year we had $54 ticket average from $36 and car counts went from 11 to 22 cars a day at that time valvoline talked me into an Express Care agreement with things about training, service, brand name, and support. Where are the valvoline trainers now when we have $62 ticket average and car counts are dropping they have no support and the training is great if you see them. At $9.xx a gal for conventional oil on the Express care plan, never again for this guy that has to train and pay the price now.

 

[JonKush]

Why dont you call corporate ? Put an email in to Les and see what he can do for you. I have mine for 6 years and I have great service from my rep. The training I know is limited to what they give you for free (included in the agreement). I am very satisfied with them put I have great support. How big is your reps territory? Maybe he is overwhelmed or maybe just lazy. Dont give up on them they have 1 of the best programs out there and I researched them all. I can try to help you if you like.

Hope this helps,
Jon

 

[packerscw]

How has business been for all of you the past 2 or 3 months?

 

[JonKush]

Business is down for us. We are out of season and we are building our IBA. A lot of people think we are closed during construction even though we have signs and banners up. The construction should be over in about 2 weeks. I at least get asked about the wash a minimum 10 to 12 times a day. I will be the only car wash with in a 9 to 10 mile radius and I have over 55,000 cars pass our shop daily.