Rethinking The Oil Change Business Venture

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Annual quick lube survey, is it still viable?

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How is Rethinking The Oil Change Business Venture

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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.

This survey showed the average customer would drive 5.7 miles to get an oil change. If 50% of the customers would drive 5.7 miles and 80% of the customers usually come from a three-mile radius to get a car wash, I see additional synergy. These car washes with oil lube centers are getting a further reach than the industry average. This is great news for those carwashes adding oil lube bays, but also it takes up space and if not marketed correctly it will not work. The survey was quick to show that oil change facilities do best in middle class areas, not high-end areas. They do poorly in low-income areas. This all makes sense. Free standing car washes were the most likely to have oil lube facilities on there properties. Interesting too is that minimum wage was not prevailing, normally the companies pay .00-10.00 per hour. Makes realistic sense and I believe good help starts in this country at .00 per hour in most metros and .00 hour in rural.

Only 23% of the fast lubes had a website. Only half had internet access in the locations. Average employees were 5 full time and 3 part timers. Luckily for the image of this industry 74% had specific uniforms. The average shop had 3 bays, not enough to do the volume if adequate blitz marketing and community based marketing were taking place. Average revenue was .00 per car. That is an awful lot of upselling since the average advertised price that I have noticed is around .99. Less than 30% were open on Sundays? Bad mistake since there is no time to change oil and wait in line for most Americans. Average monthly gross was ,400.00 per month per bay?

This is shit, this is not even a viable business, these people are wasting their time. Think about it, you have cost of oil and filter too and labor? Forget that news. I question 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 so was another prominent auto care and lube company recently. I like the Kwik-Lube Company and feel they are doing it right, but also question the ROI of such an endeavor seeing these results and the cost to build the building and time to build it. One good thing that the oil lube bays have going for them is the up-sell, but as the consumer dollar gets tighter and the credit card debt gets higher and the fall out rates increase where will this extra impulse revenue and up-sell cash be coming form?

The Industry is still expanding and new entrants to the market place are hurting existing units and I question the saturation point, not on need, but on desire. No one wants to spend money on oil changes, they need to. People buy what they want, satellite TV and beer. Not what they need, so I see a frequency problem issue brewing and people waiting 5-6-7 thousand miles between changes. So I believe that if an oil lube bay is not already attached to another reason to frequent the facility it will soon be in desire straits. The survey also showed that 93% OF THE OIL LUBE BAYS USED ADVERTISING TO GET THEIR CUSTOEMRS? WHY? We do not advertise, word of mouth and happy customers advertise for us. There you go again more cost.

Also 60% of the surveyed said that competition was discounting. HMMM? You have labor costs that are high, frequency is down, new car technology on the horizon, cost of oil going to the big guys and throw in a price war? I see problem as the non-savvy operators leave facilities for sale and exit the market place. By eliminating the facility and going mobile with the existing customer base of let's say a mobile truck repair business which can co-band and fleet services available you could beat these other companies since they running redline over saturations of mailer coupons and phone book ads and no web sites. Many companies are not watching the changing demographics at their locations and lease or property costs and unable to sell or borrow more due to their lousy profit margins. And what can you convert and Oil change bay into? Cover up the hole for a tire shop? What happens when Hydrogen cell comes and no one changes oil. Can you convert to filter type operation? Not really since often the tires and wheels are offset and will land the modular car into the lube 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."

Listen to this part of the survey, advertising dollars were spent on, here is where the respondents said they advertised; TV 15%, Direct Mail 51%, Radio 38%, Newspaper 35%, Bill Boards 18%, Yellow Pages 53%, other only 13%. Scary, all that costs money and everybody is running redline copying each other. This is what happens when people cannot think any longer and cannot adapt and do business at the speed of thought,

[http://www.speedofthought.com]

81% of respondents said they would honor competitor's coupons? Whatever, why print them then. Let everyone else spend the money and take theirs? 80% said they have tried to use discounting to lure customers from other lube places to theirs. Boy this sounds like the carpet cleaning industry to me.

Breakdown in costs per job. 10% rent or property, 3% maintenance of facility, 26% labor, 30% materials, 4% utilities and many reported expecting that to double and some have already in the west experienced a tripling. Insurance 4% and that to expected to keep rising and some said 8%, Customer claims for damage 1%, this is in-excusable, Advertising 10%. Want to add those up for me. Why are they doing it?

Average new facility costs were; Land 6,000, Improvements 5,000, New equipment ,000. WOW all that for little or no return? Average number of competitors within 10-mile radius? 36% said 3, 19% said two, 19% said 5, 7% said 5 or more. How can anyone invest this kind of money per location when we can build a couple of units for a total of ,000 and nearly equal the number of potential vehicles to service? Also with AAA building oil change facilities and Wal-Mart getting into things, the competition will be bloody and that is 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 very much liking this Industry because we know things the Industry does not and we can slam them because they have missed the boat. We have seen a few companies which are looking into ways to change the oil on the water for yachts. What is even better is that they all missed the boat at the same time and are fighting on shore for a few little boats to get to the ship that is leaving the harbor. Who will survive this oil change war. The one who bests services the customer, they way the customer wishes to be serviced.

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Using Character Sheets in Fiction Writing

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Writing fiction is a bit like baking a cake. You need the right ingredients in the right amounts, or it will turn out awful. For fiction, you need the right combination of plot, action, description and character development to bring your story to life for your reader.

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How is Using Character Sheets in Fiction Writing

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Character development can be one of the most important things about writing fiction. You want to create a realistic group of characters to move your plot along and to do that you need to know them. But how much do you really have to know about them before you start writing?

Well, that depends on the kind of story you are writing. The length of your tale will dictate the amount of character information you will need to make them come to life. For simplicity's sake, I've broken my character sheet down into what I use for each type of writing. Your character sheets may vary.

Flash Fiction

Writing flash fiction is one of the hardest types of writing. You have to create a story with just the minimum of words and it has to make sense. For most flash fiction, you only need the most basic character information.

Name:

Age:

Height:

Weight:

Hair color and style:

Eye color:

Complexion and skin tone:

Character's body build:

These should be enough to create a flash fiction character.

Short Stories

Short stories have a higher word count, so the characters in those should be more developed. You have more leeway with your character's descriptions and can even give background information, which will make them more real for your readers. Use the above information and add the following:

Character back story:

Identifying marks:

Facial features:

Hand features:

Scent:

Mannerisms or gestures:

Novellas and Novels

Novellas and novels require the most detailed characters because they are as much character driven stories as plot driven. Character sheets with more detailed physical description, personality traits, and an extensive background will go a long way to making your story one that pulls a reader in and keeps them reader from beginning to end. Use all of the above plus the following:

Strongest personality traits:

Weakest personality traits:

Needs of the character:

Ambitions:

Father's name:

Age:

Physical appearance:

Mother's name:

Age:

Physical appearance:

Sibling's names and descriptions:

Favorite sayings:

Interests and hobbies:

Favorite foods:

Favorite colors:

Pets:

Education:

Religion:

Financial situation:

Future plans:

Possessions this character values most:

What drives your character:

How does your character handle conflict:

What is standing in your character's way:

What is their favorite room and why:

What vehicle do they drive:

Favorite sport(s):

What are your character's prejudices:

How does your character feel about love:

About crime:

What is their neighborhood like:

What is your character's philosophy on life:

What is your character's family life like:

You also should have a rough background and timeline for this character, from childhood through the start of the story. Break it down into 5 year spans, unless your character is fairly old, then go with 10 year spans. Finally, have a profile summary, taking everything you have for the character and write up a one or two paragraph summary. It is a good way to focus your character's information, and could be used in your story.

Book Series

When writing a series of books about the same characters, it is imperative to keep some kind of record of their traits. Do not rely on your memory when it comes to writing each book. As an avid reader of series books, it is amazing the number of times a character's eyes have been dark blue in one book and dark brown in another then gone back to blue. While most casual readers won't catch that kind of mistake, your dedicated readers will. It costs you nothing to keep a notebook with your character sheets and reference it when writing the next book in your series. It will go a long way to keep the continuity of your books intact.

A note on describing clothing. Unless clothing change is crucial to your story's plot limit your fashion descriptions. You do not need to tell every single piece of clothing your character is wearing. A basic idea of their attire is enough for most readers.

Your characters are as important to your story as your plot. Developing them will help bring your tale to life, but taking the time to plan them out prior to writing is a great way to make them real to you and your reader.

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