Who you should co-Brand with and why
We have noticed a trend which is getting more popular amongst the larger city, Auto Dealership fleet departments. We are seeing a more inclusive bundling of services. We believe this is due to the need to retain their customers in a tight and highly competitive market. We see that much of this is also due to the huge competition in Fleet Leasing by Ryder and Penske (Rollins, UPS). As well as the smaller regional and strong fleet leasing companies across the nation and well into most all parts of Canada. Fleet Leasing typically has offered things such as Centralized billing, discount buying, truck washing, routine maintenance, extended warranty services, spare vehicles for down time, assigned manager (one call theory), commercial financing, same day in and out services.
The world of ATF is sure getting interesting isn’t it? Ever ask yourself why? Toyota’s T-4 doesn’t look or feel all that different but that is what is required for Toyota Products. Daimler Chryslers ATF+4 Must stand for plus four dollars you say? Ford’s “Mercon SP is much different than that of GM’s “Dextron H” right? Well, yes and no. But it does make a difference.
The new ATFs are changing for a couple of reasons, one to make more money and keep that money in house, sure that is one reason. But remember automatic transmissions are changing too. Many new automatic transmissions get a 10% increase in efficiency, but using a different strategy. The new automatic transmissions in many cases lock up and shift at high speeds rather than using the slip method. This will require a more durable fluid with anti-shutter friction properties. It will also need improved oxidation formulas and high torque capacities. Now we see OEM ATF on it’s way. Just when you thought you had another way to make money they wish to zap all the profit out and cause you increased inventory costs due to multiple brands. Another reason is to get those customers back their dealers for increased profits in their shops at the dealerships, so the dealership can make more money and the Manufacturer can get more for the cars and supplies and all those OEM fluids.
Why use oil?
You’ve heard it before. Oil is the lifeblood of your engine. The purpose of motor oil is to lubricate and protect your engine from heat and friction; the two major enemies of your engine. Without oil your engine would overheat and cease working. Your engine might even crack. Motor oil may be the single most important fluid you will put in your engine.
We all know it is cheaper to fix things yourself. It is the same with a car or truck. The biggest expense with any repair is not the parts, but the labor. It is not uncommon for repair and service shops to be charging $60 to $70 per hour of labor. And they round to the next half hour or hour for any repair. Just go to any new car dealer and ask to have your windshield wiper blades replaced. They will charge you 10 times the price of replacements at your local auto parts store. So anything you can do yourself to save will be a big help. The purpose of this article is to show you some things you can do on your own and how to get the lowest prices on parts so you can save big and put your money towards something better than fattening your local auto dealers pockets.
First off is routine maintenance. Routine maintenance consists of items like oil changes, tire rotations, and similar. Oil changes are a must at every 4000 to 5000 miles for most every car. Do not go by what your dealer says. They want to rev up your maintenance plan and have you doing more than is required. Instead, use your owners manual. If your car didn’t come with one, than buy one off of Ebay. The owners manual will give you exact recommendations for every service and when and what should be done. For oil changes use Walmart. They charge around $15 for a oil and filter change and will lube your chassis at the same time. They will also check your tires and change your air filter if you desire or need it. They have the best service for the lowest price and at $15 its better to have them do it than do it yourself. Expect to pay twice this at a new car dealer.
We have been reviewing articles in Oil Lube Magazines, Newsletters, ASO, ASE, Auto Mechanic and many other periodicals on the assessments and profitability of mobile oil change units. We believe that many of the surveyed may have misrepresented their actual results, however have brought to you some of the findings which have been written about in these comparison surveys and reports. Even though the surveys and periodicals have much credibility, I believe that the studied set of operators have been to few in numbers to be accurate and even one of the magazines admitted that the survey was plus or minus 5% at best.
We believe 15% although are rather miffed at the fact that no one really seems to know the real results of such efforts by individual operators. In the survey in one newspaper in the Industry they found that only ten percent of the mobile oil change units to be franchised and 90% independent operators. The same publication said that the average radius of service was 51 miles and had at least 21 fixed site operators in their market which was an increase from previous studies. The average ticket price was said to be $39.00 and average cost of goods sold was $8.40. Average company had 1.6 vans. Vans were the most popular units used about 52% of the time, bobtail trucks 10% of the time and pick-ups 5% of the time. An average of 4.4 vehicles per stop were said to be serviced. 70% of the companies serviced mostly fleets. We have not found this to be the case in our actual ride along studies with competitors and team members; http://www.OilChangeGuys.com
Well let’s see GF-3 got passed when no one could work out the details, isn’t it typical when you form a committee and spend hours putting into minutes what you could have done in seconds as an entrepreneur that the results are insured in advance? Dismal failure, but no matter let’s move forward anyway, isn’t that what bureaucracies do?
So GF-4 should be completed sometime in 2004-2005? They say, but who is they?
When Do I change my Oil?
Motor oil technology has gradually progressed since the days of the earliest automobiles. In those days, standard motor oil drain intervals were between 500 and 1000 miles, and motorists had to switch viscosity grades with the changing of the seasons. The development of oil filtration and additive technology in the 1930s allowed drain intervals to increase to 2000 and later 3000 miles, while the development of viscosity modifiers in the 1940s allowed the formulation of multi-grade oils that could be used in both hot and cold temperatures.
Gas prices remain at historically high levels and the long term trend is indicating that they will stay high. If you own one or more cars, you understand that saving cash somewhere, somehow is important to helping you preserve your budget. The following are some important tips to help you manage your car expenses.
Look over your insurance. If your car is between two and three thousand dollars, consider canceling your collision coverage. The money you save could then be set aside by you toward a down payment on your next vehicle.
The fact that 28% of all fast Lubes operate some type of carwash is intriguing indeed. Of course many start as car washes first and then they have been approached with Oil Company Brand Incentives. I.e. You promise to use only our oil, advertise our banners out side and buy X-amount of oil per year and we will give you a $30,000 grant on a five to ten year contract. Or use x-amount of our oil in five years and we will give you a five year $100,000.oo loan interest free. These incentives are nothing to shake a stick at, and you can make money from a fast lube so why not advertise it, bundle services and ace your competition within the ten mile zone where 80% of your customers are drawn from. Even more interesting is that oil fast lubes draw from slightly further away than car washes typically, so you win twice.
The average ticket at a typical fast lube as discussed in the Industry trade journals varies from $22.50 to $27.17 from the articles I have read, with no personal opinion on the matter myself, since I believe seasonality, car sales in the area from previous years past and competition all play a much different and more important factor, but with that said, let me continue. Realize in a perfect world the figures could legitimately be used by politicians, liyars and clergy across the board. Stand alone fast lubes are said to take in on average higher ticket prices averaging $2.00 perhaps because customers are more believing when a mechanic only facility suggestively sells them wiper blades, fluid flushing or belts. Who knows, but it does stand to reason that this figure is accurate. The average cost for an oil change is $8.55 in real costs on filter, oil, etc.
Mechanic Shortages? You Bet. Nothing is more serious than Labor issues. In Arizona the incoming Governor is poised to try to train skilled labor and set the bar higher for those jobs, which need filling. Everything from constructions to maintenance. For every 10 mechanics that leave or retire only three enter the market. Thus supply and demand is dictating increased wages, but not very much and certainly not as much as expected. Some is offset by low wage payers such as Wal-Mart oil changing technicians on the low end. But the Wyoming Automotive technical Institute tells me that there are many high paying jobs waiting for every graduate as a matter of fact they could never fill all the openings across the nation, they would need 10 campuses? Perhaps The University of Phoenix or some other technical college may fill the gap, but we need people now. Yes, our company, the Oil Change Guys needs them and so does the rest of the industry.
The National Institute for Service Excellence has certified 430,000 mechanics so far, but many are already mechanics switching jobs and getting the certificate, same with the ASE program. One bulletin board in the Oil Change Industry is hammering on Wal-Mart for secretly visiting their facilities and leaving “come to work at Wal-Mart” cards around the shop, offering benefits, better hours, stock, etc. Quick Lubes are already seeing a price war brewing and some will not admit lost market share, but they have lost customers and should probably not blame the oil interval challenge or the economy as much and look at the big box store competition.
You know there are certain drawbacks to being mobile in the oil change business, for instance trying to offer add-ons during oil changing services. For instance we need to get the orders the day before and stop off at the local NAPA, and pick up the air cleaners, filters, because it is impossible to try to stock all those damn filters. You indicate you are ware of this already and rightfully so.
As any Quick Lube operator or anyone in the Associations will tell it, it just sucks. Why? Well many reasons for instance every time they build a new car the air filer seems to be the last thing designed and has to fit in a little space. So of course every type of car requires a different specification. Of course if you tried to carry all these you would go broke and the dealers shops do not want you to change the oil or sell the filters, they want that additional business. Makes sense, but it does not make you any dollars.
Believe it or not there is a motor oil which only needs to be changed in Trucks every 35,000 miles; yes exactly, that is what I thought; NO WAY! Kendall Motor Oil for trucks is claiming a 35,000 mile interval between oil changes at;
http://www.kendallmotoroil.com
Annual quick lube survey, is it still viable?
I wish to comment on the Fast Lube Business and the annual survey done by Auto Laundry News, one of the few Industry Magazines for the car wash industry. In this 2001 survey, we see an increase on the number of locations out there. Yet the leader of the Industry is by far Jiffy Lube. We see variations on theme, but we can safely say that Jiffy Lube has adapted best to the American public and their desires when it comes to oil changes.
Before starting your oil change make sure you purchase the correct grade of oil for your car’s engine. SAE 10W30 is the most popular grade and some for the newer cars we recommend SAE 5W30, especially when the weather is cold. Verify this information in your vehicle owner’s manual.
To get started you will need to raise your vehicle if you can not comfortable slide underneath it by driving it onto a garage ramp. Also have an oil pan, wrench, oil filter wrench, funnel and a cotton rag. Once you have the above tools assembled, follow our step-by-step instructions. Always follow common sense safety rules when working on your car. Make certain that your car is securely on the parking ramp before getting under it to prevent the vehicle from rolling, tipping or falling on top of you and ALWAYS make sure you car is not running or the engine hot.
Posted in General | Also tagged change, oil, oil filter |
Getting your oil changed is something that the pros promise they can do in a jiffy, however, with every three thousand miles you drive, the price can add up quickly. You can save yourself some money by doing it yourself. An oil change is not as hard as you may think!
Prior to changing your oil, you will need to pick up some supplies at you favorite parts store. The first thing you will need is six quarts of oil. If your car manufacturer recommends a certain type, you should stick with that. Otherwise, choose a brand you know and trust. (Note- do not mix oil. If you have a quart or two of one brand already at home, make sure you purchase additional quarts of the same kind.) With every oil change, you should always change your oil filter as well. So, you will also need to pick up an oil filter for your particular car. In addition, you will need an oil pan to empty the old oil into. Your best bet is to purchase one that can seal so that you can easily take it to be recycled. And, if you don’t have one already, you could use an oil filter wrench.