(Fast Lube) (Oil Change-Plus) (Oil Change-Plus)

Transcription

1 The National Oil & Lube News OIL CHANGE-PLUS SURVEY RESULTS GENERAL The Survey focuses on the study of the oil change-plus industry. These facilities are those that provide oil changes, but they are not the primary business. Examples of such locations include full-service auto care centers, lube and tire stores, tune-up shops, repair shops, muffler shops, etc. The study is similar to the Operator Survey, conducted each September by NOLN, which is used to evaluate the success of fast lube operations. Survey data is presented below and compared to the Operator Survey data and 2014 Survey data for reference points. Survey data was gathered from questionnaires, via phone interviews and mailed directly to operators. The responses for the Oil Change-Plus Survey account for 2,864 facilities and include facilities operating in all 50 states. OPERATIONS 2014 () () () Independently owned facilities...30% % Franchised facilities...70%... 33%...4 Number of bays per facility Facilities that also have a carwash...62%... n/a...3 Cost of goods for standard, full-service LOF... $ $ $15.42 Average ticket total... $ $ $ 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 min min min Days open per week Hours open per day n/a Operators who own their building/land %...5 Operators who lease their building/land % Average length of ownership/operation years... n/a...26 years Building/land costs for most recent fast lube (if owned)... $847, n/a... $1,323,038 Cost for leasing building/land (per month)... $5, n/a...$7,190 Equipment costs for shop... $81, n/a...$143,479 Facilities offering free Wi-Fi for customers n/a...8 Facilities using closed-circuit television...51%... n/a...60%

2 DEMOGRAPHICS 2014 () () () Oil change facilities within three miles of respondent Miles customers drive between oil changes... 4, , ,804 Portion of overall sales made up of fleet accounts Average number of vehicles per fleet Vehicles equipped with oil monitors Miles driven between oil changes by vehicles with oil monitors... 6, , ,506 Average age of vehicles serviced years years years Vehicles serviced that have less than 5,000 miles... 3%... Average number of miles on vehicles serviced... 83, , ,493 who drive domestic vehicles % who drive foreign vehicles...43% % who drive luxury vehicles %... who drive light trucks % Percentage of repeat customers n/a...6 Way in which customers choose their brand of products: Are brand-loyal... n/a... Follow technician recommendation n/a...91%...2%... n/a...1% PRICES 2014 () () () Price of standard, full-service LOF/multi-point check with 5 quarts of oil...$ $ $39.43 Price charged for an additional quart of bulk oil with standard, full-service LOF...$ n/a... $4.63 Price charged for an additional quart of bottled oil with standard, full-service LOF...$ n/a... $5.94 Operators who offer semi-synthetic LOF n/a...9 Price, if offered, with 5 quarts of oil...$ n/a... $51.30 Price charged for an additional quart of bulk oil with semi-synthetic LOF...$ n/a... $5.35 Price charged for an additional quart of bottled oil with semi-synthetic LOF...$ n/a... $7.05 Operators who offer premium LOF (w/ high mileage motor oil) % %...9 Price, if offered, with 5 quarts of oil...$ $ $46.39 Price charged for an additional quart of bulk oil with high-mileage LOF...$ n/a... $6.91 Price charged for an additional quart of bottled oil with high-mileage LOF...$ n/a... $7.21 Operators who offer premium LOF (w/ synthetic motor oil) % %...100% Price, if offered, with 5 quarts of oil...$ $ $64.00 Price charged for an additional quart of synthetic oil...$ n/a... $10.44 Operators who offer diesel LOF %...9 Price for a GM (2010-) 6.6L engine...$ n/a... $87.23 Price for a Dodge (2007-) 6.7L engine...$ n/a... $97.30 Price for a Ford 6.4L engine...$ n/a... $ Price for a Ford 6.7L engine...$ n/a... $ Price for a passenger car...$ n/a... $72.31 Operators increasing LOF price in the past 12 months %...30% Amount of increase...$ $ $3.44 Operators discounting their own oil changes Amount of discount...$ $ $ NOLN

3 SALES 2014 () () () Percentage of annual sales comprised solely of oil change services n/a...5 Yearly sales per store:...$694,189...$961, $867,370 Portion of gross sales used for: Payroll % Lease/Mortgage COGS % Net Profit % Operations % %...1.2% 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 2014 () () () Total sales represented by house motor oil brand % Operators being paid for their used oil Amount per gallon... $ $ $0.34 Per-gallon cost of highest volume bulk oil... $ $ $7.67 Operators carrying synthetic oil in bulk n/a...61% Overall breakdown of motor oil sales: Conventional...53% Semi-synthetic... 23%...2 Full synthetic High mileage Diesel %...2%... <1%...<1% Overall breakdown of motor oil sales by weight/grade: 0W %... n/a...0% 0W W % W W W % 15W %...2%... 2% % November NOLN 3

4 Best Selling Motor Oil Private Label Private Label 1 23% Private Label Service Pro Kendall Service Pro Quaker State Best Selling Synthetic Motor Oil 2014 Service Pro 22% Amsoil Private Label 13% 21% 1 Kendall Private Label 2 Amsoil Best Selling Oil Filter 2014 Purolator Prime 1 21% 1 3 NAPA Service Champ 33% 1 NAPA 13% Service Champ Performax 1 Service Champ Carquest Purolator FRAM Premium Performax WIX Service Pro Prime 4 NOLN

5 Best Selling Air Filter 2014 Prime 1 Premium 22% Performax 1 1 Service Champ 31% FRAM 1 NAPA Purolator 13% Service Champ MicroGard Premium 3 Premium 1 NAPA Prime 13% Service Champ Performax Best Selling Additive Brand 1 3 Lucas Oil 2 BG Gumout ITW Professional Automotive Products Solid Start/ True Brand Techron Service Pro Solid Start Amsoil 21% Lucas Oil EMPLOYEES 2014 () () () 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, $47, $51,864 Average annual salary paid to owner...$67, $64, $65,073 Average starting wage for lube techs...$ $ $8.88 Average hourly wage for lube techs...$ $ $10.05 Companies that drug test employees November NOLN 5

6 ADVERTISING 2014 () () () Operators who collect customer addresses...n/a n/a And do not use them... n/a... And use them for marketing n/a...3 And use them to send service reminders n/a...33% Operators who collect cell phone numbers for text message marketing purposes...n/a... 3%... n/a And do not use them n/a...2 And use them for marketing... n/a...13% And use them to send service reminders... n/a... Best form(s) of marketing: Coupons...41%... n/a... Direct mail... n/a n/a... n/a... Loyalty program...n/a... n/a... Radio...n/a... n/a... Reminder cards... n/a... Social media...n/a... n/a... Word of mouth n/a...43% SERVICES Additive sales: ATF supplement... 72%...$ $ %... 52%... $ Chemical engine flush/oil system cleaner $ $ %... $ Coolant stop leak......$ %......$ %... 22%... $ % Coolant treatment... 1%...$ n/a......$ % $ Diesel fuel supplement/cleaner... 60%...$ $ % $ % Gear oil supplement... 22%...$ $ $ % Oil stop leak... 42%...$ %......$ $ Pour-in fuel injection cleaner... 91%...$ %... 21%...$ $ Power steering treatment $ n/a......$ % $ Transmission stop leak... 63%...$ $ %... 43%... $ % Air conditioner odor removal service......$ % $ %... 32%... $ % Air conditioner recharge... 61%...$ $ %... $ % Air filter replacement $ %...$ % %... $ % Brake pad replacement $ % $ %... 63%... $ Brake fluid flush......$ $ $ % Breather replacement $ %... 73%...$ $ Cabin air filter replacement $ % $ % $ Check batteries... 90%... n/a... n/a... n/a... n/a... n/a n/a... n/a Diesel exhaust fluid service... 83%...$ %... 73%...$ % $ % 6 NOLN () 2014 () () : figure from small sampling

7 SERVICES (CONTINUED) () 2014 () () Differential service... 92%...$ % $ %... $ % Fuel filter replacement... 90%...$ % $ % $ % Fuel injector cleaning (multi-part) $ % $ %... 82%... $ % Headlight restoration $ $ $ % Lightbulb replacement $ % %...$ % $ % Manual drain and refill of radiators......$ $ %... $ % Mechanical ATF exchange $ % $ %... 92%... $ Mechanical engine flush/cleaning... 13%...$ $ %... 33%... $ Mechanical full-block coolant flushes $ %...$ $ % Minor mechanical repairs n/a n/a %...n/a Nitrogen-based tire inflation $ $ %... $ Oil changes on Class 4 or larger commercial vehicles......$ $ % $ Oil changes on motorcycles... 1%...$ %... 1%...$ %... 22%... $ Oil changes on RVs $ %... 71%...$ %... $ PCV replacement... 70%...$ $ %... $ Power steering flushes $ $ % $ Radiator, heater, A/C hose replacement......$ $ $ % Rock chip windshield repair... 22%...$ %......$ % $ Sell batteries... 83%...$ % $ % $ % Sell extended drain oil filters $ %......$ %... $ Serpentine belt replacement $ $ $ Shock replacement... 3%... n/a %... n/a... n/a... n/a $ Smog checks/emissions testing $ %...$ % $ % Spark plug replacement $ % $ %... 61%... $ Strut replacement... 2%... n/a %... n/a... n/a... n/a $ Tire rotation... 32%...$ $ % $ % Tire sales n/a n/a n/a Transmission service (drain/refill manually)... 41%...$ $ $ Water-repellent glass treatments $ %...$ %... 41%... $ Wheel alignment......$ n/a... n/a... n/a... 43%... $ Wheel balancing......$ % $ $ Wiper blades (beam) $ $ $ % Wiper blades (conventional) $ $ $ % : figure from small sampling A Special Thank You Goes Out to Chevron for Sponsoring the Survey. November NOLN 7

8 Best Selling Add-on Services Fuel Injection Cleaning Differential Service Tire Rotation Transmission Service 30% Air Filter Replacement Additives 23% Wiper Blade Replacement Fuel Injection Cleaning Additives Radiator Flush Belts Transmission Service 1 Tire Rotation 2 Air Filter Replacement 1 Wiper Blade Replacement The Survey and its contents are copyrighted by TKO Multimedia DBA National Oil & Lube News S