Thorough Survey

Survey information was gathered on all facets of the
quick lube business from more than 4,500 stores in all
50 states. It divides the information into two categories:
companies with less than 30 stores (LT30) and companies with more than 30 stores (MT30). According to the survey, average daily car counts at LT30 stores rose to 36.5, up from 35.7 a year ago. Car counts at LT30 stores have dropped almost 12 percent since 2002, down from 40.3 cars per day. NOLN Editor Garrett McKinnon warned that the numbers might be deceiving because data in the report is for the year ending in May. “Looking at the summer information, the counts have tailed off, so we’ll probably see a dip in next year’s survey,” McKinnon said. “We’re hearing anecdotal reports that counts are down 10 to 15 percent in the summer of 2006 vs. 2005 because of high gas costs.”

Similarities and Differences

This year, NOLN asked if there are any vehicles lube
operators refuse to service, and 28 percent of LT30
companies and 40 percent of MT30 companies indicated there were some models they would not work on. According to McKinnon, most are high-end European cars, some of which require special oils, filters or equipment, and liability is a concern. AMSOIL Synthetic 5W-40 European Motor Oil (AFL) is recommended for most of the latest European and North American gasoline and diesel specifications.

MT30 companies spent an average of over $1 million on facilities and land to start one of their operations, while LT30 companies spent less than $443,000. But, MT30 companies reported having half as many competitors within a five mile radius as LT30 companies, and traffic and nearby population counts were better as well. The overall average ticket total is $55 for the MT30 group and $45 for LT30s. Yearly MT30 sales were $637,135, while LT30s averaged $522,792. Net profit was 13.2 percent for MT30s and 11.5 percent for LT30s.

Average Prices

Average price of a standard oil change and multi-point
check was $31.19 at MT30 stores and $29.97 at LT30 stores. Nearly every quick lube offers synthetic oil changes, and they averaged $56.33 at MT30s, compared to $52.97 at LT30 stores. MT30 stores pay an average of $5.09 per gallon for their highest-volume bulk oil, compared to a $6.41 per gallon cost for LT30 stores.

MT30 Stores Don't Have Every Advantage

An advantage small quick lube chains hold over large
chains is the availability of AMSOIL. The AMSOIL Retail on-the-Shelf Program was designed with small, independently owned retail stores and quick lubes in mind. These stores represent an excellent opportunity for AMSOIL Dealers to expand their sales network without jeopardizing the multi-level marketing opportunity for other Dealers.

 While many MT30 stores are off-limits due to the AMSOIL 12-store policy, there are still many opportunities to register businesses that belong to a national or regional chain as retail-on-the-shelf accounts. Many stores within a retail chain, such as NAPA Auto Parts, Texaco X-Press Lube or Hardware Hank stores, are individually owned or franchised. These stores may become AMSOIL retail-on-the-shelf accounts providing the owner does not own more than 12 stores.

Increased Profits

Quick lube owners have discovered that selling AMSOIL products brings in more money. Selling premium AMSOIL Motor Oils means commanding a premium price. Not only do customers want synthetic lubricants, they expect to pay more for them, allowing quick lubes to charge more. One AMSOIL XL 7500-mile oil change earns the quick lube more than twice what a regular oil change provides.