year quick lube survey, it is still viable?
I wish the Fast-Lube business and the annual survey of car wash done news commenting, one of the few industry magazines for the car wash industry. In this 2001 survey, we see an increase in the number of sites available. But the leaders of the industry is far from Jiffy Lube. We see variations on a theme, but we can safely say that Jiffy Lube has best adapted to the American public and their wishes when it comes to oil changes.
This survey showed the average customer would drive 5.7 miles to get an oil change. If 50% of customers would 5.7 miles and 80% of the customers drive coming from a three-mile radius is usually to get a car wash, I see additional synergy. These car washes with oil lubrication centers get another range than the industry average. This is good news for car washes oil lube bays addition, but also it takes place and if it is not marketed properly it will not work. The survey was to show quickly that oil changes do institutions in middle-class areas best, not high-end areas. They do poorly in low-income areas. This all makes sense. Detached carwashes were the most common oil lubrication systems there have properties. It is also interesting that the minimum wage was not valid, in general, the companies pay $ 8.00 to 10.00 per hour. Power realistic sense and I believe good help in that country starts at $ 10.00 per hour in most metros and $ 8.00 hours in the country.
Only 23% of the fast lubes had a website. Only half had Internet access in locations. Average staff were 5 full time and 3 part-timers. Fortunately for the image of this sector 74% had specific uniforms. The average store had three bays, not enough to do the volume when a sufficient lightning marketing and community-based marketing took place. The average turnover was $ 32.00 per car. That's a lot, since the average advertised price upselling that I've noticed is around $ 19.99. Less than 30% were open on Sunday? Bad mistake, since there is no time to change the oil and wait for most Americans in line. The average monthly gross was $ 2,400.00 per month per bay?
This shit is, this is not even a viable business, these people are wasting their time. Think about it, you have costs for oil and filter to and work? Forget that message. I ask the viability of the entire oil change industry. The largest Jiffy Lube franchisee in the country with 180 units was de-listed from NASDAQ and was another prominent car care and lubricants company recently. I like the Kwik-Lube Company and feel you do it right, but also provide the ROI of such an endeavor to see these results, and the cost of construction and the time to build, to build it. One good thing that the oil lubrication bays will have for them is the up-sell, but as the consumer dollar is firmer and the credit card debt is higher and the case raise rates, where is this additional pulse revenue and upsell cash coming form?
The industry is still expanding and new to the market are violated existing units and I the saturation point in question, not required, but if desired. No one wants to spend money on oil changes that they need. People buy what they want, satellite TV and beer. Not what they need, so I see a problem frequency problem brewing and people waiting 5-6-7 one thousand miles between changes. So I believe that when a laurel oil lubrication is not for another reason too often the system is already installed, will soon be in straits desired. The survey also showed that 93% of the BAYS OIL LUBE USED advertise their custoemrs TO GET? WHY? We do not advertise, word of mouth and satisfied customers advertise for us. There you go again more costs.
Also 60% of respondents said that the competition was discounting. HMMM? You have labor costs that are high frequency down new car technology to go cost of oil to the big boys on the horizon and throwing in a price war? I see a problem, because the non-savvy operators have equipment to sell and leave the market. By investing to eliminate and with the existing customer base of let's say going mobile a mobile truck repair business, the Co-tape and fleet services available you could beat these companies because they Redline over saturations of mailer coupons and phone book ads run and no web sites. Many companies are not exactly the demographic changes at its sites and leases or real estate costs and not for sale in the location or to borrow more because of their lousy profit margins. And what you can convert and oil change bay? Uncover a hole for a tire shop? What happens when hydrogen cell comes and no one changes oil. Can you convert type operation to filter? Not really, because often the tires and wheels are added, and the modular car end up in the lubrication bay hole. We have the solution and we can beat them in almost every aspect. Some consultants have said; "Bunch of dummies copying each other."
to this part of the survey Listen, dollars spent on advertising has been, here is where the respondents said they advertised; TV 15% Direct Mail 51%, radio 38%, 35% of newspaper, billboards 18%, Yellow Pages 53%, others 13%. Scary, all that costs money, and everyone is running redline copy today. This is what happens when people can not think and can not adapt and do business at the speed of thought,
[Http://www.speedofthought.com]
81% of respondents said they competitors would honor coupons? Anyway, why print them then. Let spend any other money and take them? 80% said they have tried to lure to use discounting customers from other lubricating places to them. Boy, that sounds like the carpet cleaning industry for me.
breakdown of costs per job. 10% rent or ownership, 3% maintenance of the system, 26% work, 30% materials, 4% utilities and many reported expects that to double and some have experienced a tripling to west. Insurance 4% and rising expected to keep and some said, 8%, customer claims for damages 1%, this is in-excusable, advertising 10%. Would you like to add for me. Why do they do that?
were average new plant costs; Country $ 206,000, $ 505,000 Improvements, New equipment $ 36,000. WOW everything for little or no return? Average number of students within a 10 mile radius? 36% said 3, 19% said two, 19% said 5, 7% said 5 or more. How to invest that kind of money per site, if we build a few units for a total of $ 65,000, almost equal to the number of possible vehicles to use? get even with AAA building oil change facilities and Wal-Mart in the things that the competition will be bloody and that's a lot of money to invest in a business with an uncertain future. Not a good bet if you were a betting man.
We are to love this industry because we. Things that do not know the industry, and we can strike them because they have missed the boat We have seen some companies that are looking for ways to change the oil on the water for boats. What is even better is that they all missed the boat at the same time and fight for a few small boats ashore to get the ship leaving the harbor. Who will survive this oil change war. The one who services customers best times, they want to fashion the customer serviceable.
No comments:
Post a Comment