Proforma for new Quick Lube next to my car wash

[Buzzie8]

I am sitting down to do a new proforma for a quick lube that I am finally getting serious about opening next to my car wash. I am having trouble getting an idea forecasting my total gross revenue. I know some of the oil companies will help me with this but I wanted to hear from operators. Here are some details about my location:
1. 14,000 car count, directly across from McDonald's, soon to double because of a new Walmart opening about 1/4 mile away. 35 miles per hour, across from small shopping center as well.
2. Nearest quick lube competition is about 3.5 miles away but about 5 or 6 small service stations within about a three mile radius (all are not franchises) and most are run down.
3. It is in lower middle income area average annual income around $35k.
4. There are a lot of roof tops. About 17,000 in a 6 mile radius.
5. Land cost is $186k and my initial budget with site work has total project at about $800k for a three bay location.

I can't seem to get the numbers to work at $1,000 a day in gross revenue which is what I heard might be a good number. I am hoping that I can pull this off because the car wash business is starting to concern me and I want to diversify.

Any help would be greatly appreciated.
Buzzie8

 

[bighead]

My first thought is a question... Is the Wal mart being built going to have a Tire and Lube side? I'd reconsider the whole thing if that were the case. They tend to use thier oil change as a loss-leader.

 

[Buzzie8]

This a Super Walmart and will most likely have a tire, oil and lube. I want to research how a Walmart's opening has effected existing quick lube's but I feel confident that based on using the wash as an incentive and with the additional traffic that the Walmart creates that this location should be viable. A good thought that needs more attention. Anyone have a Walmart opening effect their lube business?

 

[bigleo48]

Not in the Lube biz, but my wash is next to a Wal-Mart super store (has tire, lube). The open lot next to me will be a Lube Shop and sees the Wal-Mart as a traffic generator.

On another note, have any of you tried to get an oil change at Wal-Mart? Takes hours! They have so many safety requirements that they can barely move. They also are typically understaffed and trained. I tried it a couple of times at different stores and they universally suck. I get my oil changed a block from a Wal-Mart and they say their traffic as not changed since the Wal-Mart opened.

BigLeo

 

[sflikkema]

Hi Bizzie
Before you get into a quick lube you should work at one for a month. Plus 800k is to much to spend. One month should be enough schooling for you to make a educated decision.

 

[Turbo]

I am in business. Work in one. Buy a mismanaged one (easier, faster and more profit). Go to AOCA convention in April.

 

[sflikkema]

Im with turbo, I wish I did. Im busting my nuts for the bank. Live and learn

 

[Ian del Caribe]

I am evaluating purchasing a site, that has a two bay quick lube and a tunel carwash, but never open to the public. We sell carwash equipment but don't have much expeirence on quick lube numbers. Where can I find a proforma for it.