| Author |
Message |
Mfennell70 (Mfennell70)
Junior Member
Username: Mfennell70
Post Number: 141
Registered: 7-2001
| | Posted on Monday, June 30, 2003 - 12:54 pm: | |
to add a little: Oil changes were $22. IIRC, he actually needed to average a bit more than the basic oil change price just to break even given the number of cars were were doing. I'm going to guess that was 250 cars/week after he had been open about a year and a half.
1000 car * $22 = $22k revenue/month. I know rent was $3k. He was open about 55hrs/week. Avg of 1 manager + 3 low skilled employees back then for 220 hrs was, what?, $8800 after taxes, insurance, etc? Don't forget debt servicing, uniform cost, rags, maintenance on equipment, serious utility bills (especially in winter) and on and on. |
Mfennell70 (Mfennell70)
Junior Member
Username: Mfennell70
Post Number: 140
Registered: 7-2001
| | Posted on Monday, June 30, 2003 - 12:36 pm: | |
I worked for one as a kid (15yrs ago) and I remember it as a tough business. The owner eventually owned several of them, so he did make money, but building the business took years and was very hands-on.
It seems to me that included maintenance on new cars and long oil change intervals are working against quick lubes in the long term, just as better OEM mufflers are hurting the muffler shops. |
Jim Schad (Jim_schad)
Intermediate Member
Username: Jim_schad
Post Number: 1463
Registered: 7-2002
| | Posted on Monday, June 30, 2003 - 9:07 am: | |
I have looked at Merlins, Jiffy Lube, All Lube and Tune, Econo Lube and Tune and a few others.
It seems to me that the industry is looking for ways to increase revenue besides just lubes. Lubes are pretty price competitive with shops like WalMart etc taking a bite of the pie. Some focus more on tuning and others on things like mufflers/brakes/AC or all of the above. Those shops have higher labor because you need to hire more skilled people.
I am looking at one in Dallas right now that is a lube and tune. Cost is $1.4MM, but the land comes with it. They want $200K down, but seller is flexible. The rest would be with SBA financing.
Some of them offer turn key setups where you just pay your money, attend training and show up to run the place. Others are more involved. SOme offer discounts if you have prior experience.
Not sure on details of buying an existing store vs going with a new one. Just be wary of thier figures. THe one I am looking at overestimates the potential sales and minimizes the debt load to paint a rosy picture of $75K cash flow. Oh, it also says this is absentee run so don't have to deduct $35K for a manager salary on top of that figure. |
IamA (Ski_bum)
New member
Username: Ski_bum
Post Number: 28
Registered: 12-2002
| | Posted on Monday, June 30, 2003 - 2:50 am: | |
Does anyone have or know someone with experience with this type of business?
Pros or cons?
Start from scratch or purchase an existing business?
I was thinking it might be a good field to get into since there are plenty of cars and they need regular maintenance. There are many of these businesses in SoCal, but if I find a good location it might provide a decent income.
The only downside I can see would be environment contamination possibilities or damage to a customers car from employee stupidity...eh, mistakes.
Or another type of business to get into? I want to stay away from something trendy or 'hot', that may fizzle 5 years down the road. Car lubes seem safe as far as longevity.
Something I can get into with up to $250k investment. This would be my first business after life in the corporate world, I think I have what it takes to run a franchise, starting up a non-franchinsed business will probably stretch my capabilities.
Thank you for any comments good or bad, on whether this is a feasible idea. |
|