2015 FAST LUBE OPERATOR
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1 The Oil & Lube News 2015 FAST LUBE OPERATOR NORTHEAST/SOUTHEAST REGION SURVEY RESULTS GENERAL The Fast Lube Operator Survey is one of the most in-depth studies of the fast oil change industry available. Much-requested by both newcomers to the fast lube industry and seasoned operators who use it to evaluate the success of their own operations the survey contains current and historical data for almost every operational metric. Survey data was gathered from questionnaires, via phone interviews and mailed directly to operators. The region comprises the following states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. The region is made up of the following states: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia. OPERATIONS Independently owned facilities... 30%...3%...25% Franchised facilities... 70% % Number of bays per facility Facilities that also have a carwash... 62%...2%...40% Cost of goods for standard, full-service LOF...$ $ $12.40 Average ticket total...$ $ $68.85 Average number of oil changes per day State inspections per day (by facilities that offer) Total number of cars serviced per day (including inspections, repair work, etc.) Break-even car count Average bay time minutes minutes minutes Days open per week Hours open per day Operators who own their building/land... 45% Operators who lease their building/land... 55%...73%...44% Average length of ownership/operation...25 years years...19 years Building/land costs for most recent fast lube (if owned)...$847,863...n/a... $741,860 Cost for leasing building/land (per month)...$5, $4, $4,411 Equipment costs for fast lube...$81,493...n/a... $46,972 Facilities offering free Wi-Fi for customers... 64%...42% Facilities using closed-circuit television... 51%...45%
2 DEMOGRAPHICS Oil change facilities within three miles of respondent Miles customers drive between oil changes...4, , ,160 Portion of overall sales made up of fleet accounts % Average number of vehicles per fleet Vehicles equipped with oil monitors... 65%...64%...6 Miles driven between oil changes by vehicles with oil monitors...6, , ,714 Average age of vehicles serviced years years years Vehicles serviced that have less than 5,000 miles %... Average number of miles on vehicles serviced...83, , ,952 who drive domestic vehicles who drive foreign vehicles... 43%...61%...43% who drive luxury vehicles... 15%...14%...15% who drive light trucks... 35%...23%...3 Percentage of repeat customers... 75% Way in which customers choose their brand of products: Are brand-loyal %...15% Follow technician recommendation %...85%... 2%...0%...0% PRICES Price of standard, full-service LOF/multi-point check with 5 quarts of oil...$ $ $39.01 Price charged for an additional quart of bulk oil with standard, full-service LOF...$ $ $4.06 Price charged for an additional quart of bottled oil with standard, full-service LOF...$ $ $5.30 Operators who offer semi-synthetic LOF %...9 Price, if offered, with 5 quarts of oil...$ $ $56.11 Price charged for an additional quart of bulk oil with semi-synthetic LOF...$ $ $5.10 Price charged for an additional quart of bottled oil with semi-synthetic LOF...$ $ $6.40 Operators who offer premium LOF (w/ high mileage motor oil) %...100%...100% Price, if offered, with 5 quarts of oil...$ $ $57.56 Price charged for an additional quart of bulk oil with high-mileage LOF...$ $ $5.09 Price charged for an additional quart of bottled oil with high-mileage LOF...$ $ $6.21 Operators who offer premium LOF (w/ synthetic motor oil) %...100%...100% Price, if offered, with 5 quarts of oil...$ $ $76.48 Price charged for an additional quart of synthetic oil...$ $ $7.67 Operators who offer diesel LOF... 85%...100%...7 Price for a GM ( ) 6.6L engine...$ $ $86.23 Price for a Dodge ( ) 6.7L engine...$ $ $92.13 Price for a Ford 6.4L engine...$ $ $ Price for a Ford 6.7L engine...$ $ $ Price for a passenger car...$ $ $62.67 Operators increasing LOF price in the past 12 months Amount of increase...$ $ $1.54 Operators discounting their own oil changes... 95%...100%...9 Amount of discount...$ $ $ NOLN
3 SALES Percentage of annual sales comprised solely of oil change services %...83% Yearly sales per store:...$694, $728, $697,185 Portion of gross sales used for: Payroll %...n/a % Lease/Mortgage n/a COGS n/a % Net Profit n/a...8. Operations %...n/a % %...n/a...0.4% 1 Includes all payroll (taxes included), salary of owner (if hands-on employee), unemployment taxes, Workers Compensation, health insurance, bonuses, etc. 2 Includes materials and supplies necessary to perform services. 3 Includes utilities, maintenance, company insurance, advertising, franchise fees, uniforms, freight, postage, administrative costs, office supplies, non-income taxes, training, company vehicle, etc. used to operate business on a day-to-day basis. 4 Dues, subscriptions, warranties, travel/entertainment, etc. OIL & EQUIPMENT Total sales represented by house motor oil brand %...91% Operators being paid for their used oil... 85%...100%...8 Amount per gallon...$ $ $0.23 Per-gallon cost of highest volume bulk oil...$ $ $7.67 Operators carrying synthetic oil in bulk %...9 Overall breakdown of motor oil sales: Conventional... 53%...53%...50% Semi-synthetic %... Full synthetic High mileage Diesel... 4%...4%...5%... 2%...1%...<1% Overall breakdown of motor oil sales by weight/grade: 0W %...0%...0% 0W %...14% 5W %...24%...35% 5W %...33% 10W %... 5W W %...2%... 2%...1%...0% September 2015 NOLN 3
4 Best Selling Motor Oil in Fast Lubes 2 23% Private Label 12% Mobil 3 Castrol Havoline 12% Mobil Castrol Havoline 2 Private Label Havoline Castrol Best Selling Synthetic Motor Oil in Fast Lubes Mobil 21% 1 2 Service Pro Amsoil Private Label Private Label Castrol Havoline Mobil 4 NOLN
5 5% Purolator 14% Best Selling Oil Filter in Fast Lubes 21% 1 Prime Guard Performax 15% Service Champ Service Champ Performax Prime Guard 14% Best Selling Air Filter in Fast Lubes 1 Service Champ 1 Premium Guard Performax 1 Performax 15% Service Champ EMPLOYEES Length of employment for managers years years years Length of employment for technicians years years years Average number of employees per store Average annual salary paid to manager...$37, $42, $35,565 Average annual salary paid to owner...$67,490...n/a... $48,143 Average starting wage for lube techs...$ $ $8.15 Average hourly wage for lube techs...$ $ $9.81 Companies that drug test employees %...84% September 2015 NOLN 5
6 ADVERTISING Operators who collect customer addresses... n/a...n/a...n/a And do not use them And use them for marketing %...1 And use them to send service reminders %...1 Operators who collect cell phone numbers for text message marketing purposes... n/a...n/a...n/a And do not use them... 14% % And use them for marketing... 4%...0%... And use them to send service reminders Best form(s) of marketing: Billboard... 5%...n/a... Community events... 5%...n/a...0% Coupons... 41%...n/a...30% Customer service... 5%...n/a... Direct mail... 20%...n/a...15% Reminder cards......n/a... TV... 3%...n/a...0% Website... 5%...n/a... Word of mouth... 34%...n/a...3 SERVICES Additive sales: ATF supplement...72%... $ n/a...n/a... n/a $ Chemical engine flush/oil system cleaner $ %...n/a...n/a... n/a... 70%... $ % Coolant stop leak...5%... $ %...n/a...n/a... n/a... 0%...n/a... n/a Coolant treatment...1%... $ n/a...n/a...n/a... n/a... 2%...n/a... n/a Diesel fuel supplement/cleaner...60%... $ n/a...n/a... n/a... 65%... $ n/a Gear oil supplement... $ %...n/a...n/a... n/a $ % Oil stop leak...42%... $ %...n/a...n/a... n/a... 21%... $ n/a Pour-in fuel injection cleaner...91%... $ %...n/a...n/a... n/a... 84%... $ % Power steering treatment...14%... $ n/a...n/a...n/a... n/a... 51%... $ n/a Transmission stop leak...63%... $ n/a...n/a... n/a $ n/a Air conditioner odor removal service... $ %...n/a...n/a... n/a... 15%...n/a... n/a Air conditioner recharge...61%... $ %...n/a...n/a... n/a... 51%... $ % Air filter replacement $ %...n/a...n/a... n/a %... $ Brake pad replacement $ %...n/a...n/a... n/a $ % Brake fluid flush... $ n/a...n/a... n/a... 15%...n/a... n/a Breather replacement $ %...n/a...n/a... n/a... 41%... $ % Cabin air filter replacement $ %...n/a...n/a... n/a $ % Check batteries...90%...n/a...n/a...n/a...n/a... n/a n/a... n/a Diesel exhaust fluid service...83%... $ %...n/a...n/a... n/a $ n/a: data not available : figure from small sampling ***: did not receive enough data 6 NOLN
7 SERVICES (CONTINUED) Differential service...92%... $ %...n/a...n/a... n/a... 84%... $ % Fuel filter replacement...90%... $ %...n/a...n/a... n/a $ % Fuel injector cleaning (multi-part) $ %...n/a...n/a... n/a $ Headlight restoration $ n/a...n/a... n/a... 71%... $ % Lightbulb replacement $ %...n/a...n/a... n/a... 85%... $ % Manual drain and refill of radiators... $ %...n/a...n/a... n/a... 3%... $ % Mechanical ATF exchange...84%... $ %...n/a...n/a... n/a... 74%... $ % Mechanical engine flush/cleaning... $ %...n/a...n/a... n/a... 23%... $ % Mechanical full-block coolant flushes $ %...n/a...n/a... n/a $ Minor mechanical repairs...14%...n/a n/a...n/a... n/a... 24%...n/a % Nitrogen-based tire inflation $ n/a...n/a... n/a... 63%... $ % Oil changes on Class 4 or larger commercial vehicles...5%... $ %...n/a...n/a... n/a $ Oil changes on motorcycles...1%... $ %...n/a...n/a... n/a... 0%...n/a... n/a Oil changes on RVs $ %...n/a...n/a... n/a $ PCV replacement...70%... $ n/a...n/a... n/a... 53%... $ Power steering flushes $ n/a...n/a... n/a... 71%... $ % Radiator, heater, A/C hose replacement...4%... $ n/a...n/a... n/a......n/a... n/a Rock chip windshield repair... $ %...n/a...n/a... n/a $ Sell batteries...83%... $ %...n/a...n/a... n/a... 74%... $ % Sell extended drain oil filters...55%... $ %...n/a...n/a... n/a $ Serpentine belt replacement $ n/a...n/a... n/a... 80%... $ Shock replacement...3%...n/a...3.3%...n/a...n/a... n/a... 5%...n/a... n/a Smog checks/emissions testing $ n/a...n/a... n/a $ Spark plug replacement $ %...n/a...n/a... n/a n/a... n/a Strut replacement...2%...n/a...3.0%...n/a...n/a... n/a... 2%...n/a... n/a Tire rotation...32%... $ n/a...n/a... n/a... 75%... $ % Tire sales...n/a...4.4%...n/a...n/a... n/a... 23%...n/a... n/a Transmission service (drain/refill manually)...41%... $ %...n/a...n/a... n/a... 54%... $ Water-repellent glass treatments $ %...n/a...n/a... n/a... 2%... $ % Wheel alignment... $ %...n/a...n/a... n/a... 23%...n/a... n/a Wheel balancing...12%... $ %...n/a...n/a... n/a... 23%...n/a... n/a Wiper blades (beam) $ n/a...n/a... n/a $ % Wiper blades (conventional) $ n/a...n/a... n/a %... $ % n/a: data not available : figure from small sampling ***: did not receive enough data September 2015 NOLN 7
8 1 5% Gumout Best Selling Additive Brand in Fast Lubes ITW Professional Automotive Products Solid Start/ True Brand 34% Lucas Oil ITW Professional Automotive Products 1 Solid Start 4 Lucas Oil 4% Fuel Injection Cleaning 5% Differential Service Tire Rotation Transmission Service Best Selling Add-on Services in Fast Lubes 30% Air Filter Replacement Additives 23% Wiper Blade Replacement Additives Fuel Injection Cleaning Radiator Flush 2 Air Filter Replacement 1 Wiper Blade Replacement 1 Tire Rotation 5% Fuel Injection Cleaning Transmission Service 12% Tire Rotation 12% Additives 2 Air Filter Replacement 2 Wiper Blade Replacement The 2015 Fast Lube Operator Survey and its contents are copyrighted by TKO Multimedia DBA Oil & Lube News S
2015 FAST LUBE OPERATOR
Choose a fresh image, field expertise and trusted people. To learn more, contact Larry Russell at (206) 890-1438 The National Oil & Lube News 2015 FAST LUBE OPERATOR SURVEY RESULTS GENERAL The Fast Lube
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