The fast lube business is a good business, but like any industry these days, it faces challenges. There also are plenty of opportunities to build on our foundation of service and convenience. As we head into 2010, the industry continues to be relevant to the automotive business, viable for owners and employees, and valuable to consumers.
In the wake of poor economic conditions, successful fast lube operators this year will be focused on improving operations, increasing services, and defining and expertly reaching their markets.
Improving Operations
Here are just a few areas fast lube operators should examine to help lower expenses and make operations more effective:
1. Look hard at existing contracts and vendors to ensure you are getting the best services possible. This can often result in finding great new service providers or strengthening already solid relationships. Are your vendors partners in your success?
2. Are your employees your best source of efficiency? Developing internal processes to find the best employees, properly train them and effectively manage them can provide the single biggest return on investment in your operation.
3. Are your operations in compliance with OSHA and EPA? Do you understand the risk of not being in compliance? In the Automotive Oil Change Association’s Manager Certification Training, compliance consistently rates high among participants because many operators are not as aware of requirements and risks as they should be.
4. If inventory is a guessing game, then guess where your profits are going? Gain control of your inventory. Too much inventory can sap profits or indicate that staff members are not properly presenting needed services to customers.
Enhanced Services
The heart of fast lubes remains the oil change, but there are many additional services that help customers maintain a sound and safe vehicle. If a potential offering fits a model based on professional service, speed and convenience for the customer, then fast lubes should have it in their sights.
Here are just a few of the OEM recommendations that fast lubes perform in their shops: Transmission fluid exchange and/or filter when required; differential fluid exchange; radiator coolant exchange; air filter replacement; in-cabin air filter replacement; PCV valve replacement; fuel filter replacement; serpentine belt replacement; and tire rotation.
Many fast lubes also offer additional convenient maintenance services for customers, including 100 percent transmission fluid exchange and flush; power steering flush; engine flushes; nitrogen tire fill; state vehicle inspections; fuel system cleaning; chemical additives; windshield repair; wiper blade replacement; headlight restoration; water repellent/windshield treatment; and battery replacement and terminal service.
It is critical that employee’s present services customers need to maintain their vehicles and keep their operating expenses down. Failing to do so is a disservice to your customers and leaves additional revenues to competitors.
Additional products and services on the horizon include:
1. Consumer environmental concerns are real and offer a market opportunity. Many fast lubes are offering or considering green oil or re-refined oil (not recycled oil). Evidenced by their specifications, many of these products are high quality.
2. Diesel exhaust fluid (DEF) will be used for diesel engines to reduce emissions for 2010 EPA standards. This represents a potential refill/service opportunity. The fluid is easy to handle and a good fit for quick lubes because it is affected by temperatures.
The Marketplace
Without market visibility, even the most efficient fast lubes with the best customer service offerings can go unnoticed. Here are a few factors to keep in mind as you move advertising and marketing efforts forward:
1. Numerous dealer closings have created a service need for many vehicle owners. Do they know you are a professional option for them? Do they know your service keeps their warranty intact? Do they know your shop can lower the cost of owning their vehicle, increase gas mileage and reduce emissions?
2. There is not a one-size-fits-all approach to marketing and advertising. However, it is important to devote the proper time to strategies and seek counsel to help implement programs that work.
3. Are you involved in your community? Remember that most fast lubes serve a five-mile radius. Your customers are your neighbors!
4. Back up marketing and advertising with great service. Your ads will get customers in the door, but great service will help ensure that they return and recommend you to friends and family.
AOCA’s Role
AOCA can play a significant role in these areas for fast lube operators. For example, our Online Technician Academy is a great course for new hires or companies new to the business, and our Manager Certification Training program offers an extensive two-day course covering fast lube operations, leadership, finance and service.
Technical information is available through our distribution channels, communications vehicles and Web site. The association also offers anytime access to companies and product information through our searchable supplier directory at FastLubeIndustryMarketplace.com.
In addition, our relaunched trade show, the International Fast Lube Expo or iFLEX, is the only event dedicated solely to the fast lube business. Educational sessions, trade show exhibitors and networking events offer a blueprint for information gathering and success.
Industry peers are among the best sources of information in any industry. AOCA offers the chance to meet and learn from those who have been there and done that.
David Saddler is executive director of the Automotive Oil Change Association, based in Dallas. For an upcoming manager course schedule, visit www.aoca.org. David can be reached at 800.331.0329 or dsaddler@aoca.org.
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