www.egenuity.com sales@egenuity.

com

BIG
Difference?
Charting Data for Fast Lubes
With and Without Carwashes

L
Like most journalists, I suffer from “excelophobia” — the fear
SPECIAL FEATURE: Fast Lubes + Carwashes = Synergy

of spreadsheets! True, I can usually bull my way through one,

though the results aren’t always pretty.
Fortunately for me, we have a true spreadsheet goddess on
staff, a virtual magician with a mouse who can take a gargan-
tuan spreadsheet full of data, massage it, tickle it a little and
have it spit out the most interesting things.
Which is why I turned to her recently when we began work-
ing on this special feature on carwashes for National Oil &
Lube News. Like we’ve done on the odd occasion in the past, I
wanted to find out what, if any, differences there are between
those fast lubes that operate in conjunction with a carwash and
those that do not.
To accomplish this, I had our spreadsheet guru work her
magic on our 2009 Fast Lube Operators Survey, breaking out
data for fast lubes and those facilities that include a fast lube
and carwash operating in tandem. We then compared this data
to the national average for all facilities. Though initially pub-
lished last September, the data is still fresh enough to give a
good comparison of lube shops versus lube/wash facilities.
What we found is surprising, mostly in that there were so few
really big surprises. But we’ll let the numbers speak for them- by Garrett McKinnon
selves. NOLN Staff Writer
garrett.mckinnon@noln.net

Operations
Ask any lube operator the two biggest metrics in the industry
and chances are he or she will respond “ticket average” and “car
counts.” It is in these areas, specifically the latter, that we find

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 www.egenuity.com sales@egenuity.com
one of the few major differences
between the two types of facilities.
Car counts for lube/wash sites are
surprisingly higher than at lube-
only sites, 36.3 cars per day for
the former versus 31.2 cars per
day for the latter.
As far as ticket averages are con-
cerned, lube/wash sites trail lube-
only sites, but not by a significant
margin. Lube/wash facilities aver-
age $51.35 per ticket, while lube-
only facilities average $52.02 per
ticket. (Note that these averages
reflect only the lube portion of a
vehicle’s service ticket; extra pur-
chases made at the carwash are
not reflected.)
Other differences we noted were
that lube/wash operators tend to
own more stores (3.0 versus 1.7)
SPECIAL FEATURE: Fast Lubes + Carwashes = Synergy
but have smaller lube shops (2.7
bays versus 3.3 bays). Plus, lube/
wash operators are far more likely
(75 percent versus 42 percent for
lube-only operators) to own their
building and land rather than
lease it.
Prices
While lube-only and lube/wash
facilities may differ a bit in some
areas, in the area of pricing they
are almost identical, with aver-
age service prices only pennies
different in most categories (i.e.
full-service LOF, basic LOF, high-
mileage LOF). The only area of
significant difference is in syn-
thetic LOFs, where lube-only sites
charge more than $3 more for the
service on average than do lube/
wash sites.
What is different, however, is
the percentage of operators who
offer those different LOF services.
While 34 percent of lube-only
sites offer a basic LOF, only 14
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NOL_1-35.indd 22
Operations National
(All Stores)*
Lubes
Only
Lube &
Carwash
Years in the fast lube business 12.4 12.4 14.9
Number of facilities per response 2.0 1.7 3.0
Number of bays per facility 3.2 3.3 2.7
Cost of goods for standard, full-service LOF $13.24 $13.19 $12.88
Average ticket total $52.04 $52.02 $51.35
Number of cars serviced per day 32.4 31.2 36.3
Break-even car count 22.4 21.7 24.9
Operators who own their building/land 52% 42% 75%
Operators who lease their building/land 26% 32% 6%
Operators who both own and lease their buildings/land 22% 26% 19%
Building/land costs for most recent fast lube (if owned) $552,545 $549,727 $526,923
Cost for leasing building/land (per month) $4,472 $4,479 $4,513
Percentage of business that is oil change 69% 69% 69%
Prices
Price of standard, full-service LOF/multipoint check $34.38 $34.23 $34.27
Operators who offer basic, low-cost LOF service 31% 34% 14%
Price, if offered $27.77 $27.71 $27.79
Operators who offer premium LOF (w/ specialty/high mileage motor oil) 84% 87% 80%
Price, if offered $45.70 $45.75 $45.11
Operators who offer premium LOF (w/ synthetic motor oil) 92% 97% 83%
Price, if offered $60.93 $61.87 $58.78
Operators increasing LOF price in the past 12 months 63% 63% 52%
Amount of increase $2.64 $2.49 $2.83
Competitors discounting their oil changes 85% 83% 88%
Amount of discount $5.92 $5.93 $5.26
Operators discounting their own oil changes 63% 69% 40%
Amount of discount $4.70 $4.43 $4.62
Demographics
Fast lubes within three miles of respondent 2.6 2.6 2.4
Oil change facilities within three miles of respondent 5.3 5.6 5.0
Population within three-mile radius of best store 20,837 18,718 22,660
Daily traffic count in front of best store 20,077 19,865 22,865
Customer base that is female 52% 52% 52%
Miles customers drive between oil changes 4,364 4,310 4,469
Portion of overall sales made up of fleet accounts 10% 10% 10%
Customers who drive domestic vehicles 58% 57% 59%
Customers who drive foreign vehicles 41% 43% 39%
Customers who drive luxury vehicles 18% 18% 17%
Customers who drive light trucks 35% 35% 35%
Vehicles equipped with oil monitors 52% 53% 50%
Miles driven between oil changes by those vehicles 4,783 4,791 4,829
*This column represents the national average for all facilities. Because some categories are weighted, the national average may not
4/21/10 1:50:26 PM
 www.egenuity.com sales@egenuity.com

Best
Best Selling
Selling Motor
Motor Oil
Oil in
in Fast
Fast
percent of lube/wash sites do. Further, while 97 percent of lube- Lubes
Lubes with
with No
No Carwash
Carwash
only sites offer a synthetic motor oil LOF, only 83 percent of
lube/wash sites do.
Pennzoil
Pennzoil
21%
21%
Demographics Others
Others
24%
24%
Like prices, there are few major differences between lube-only
sites and lube/wash sites in the area of customer demographics. Shell
Shell
5% Valvoline
5% Valvoline
Perhaps the only significant difference is in population, as lube/ Chevron
Chevron
15%
15%

wash sites tend to be built in denser population centers (22,660 Best Selling Motor Oil in Fast
6%
6%

Lubes with Carwash Castrol

population within three miles for lube/wash sites versus 18,718 Castrol
8%
8% Mobil
Mobil
Quaker
Quaker
population for lube-only sites) and on streets that enjoy a high- State
State
12%
12%
9%
9%
er traffic flow (22,865 cars per day versus 19,865 for lube-only Others
sites). 19%

Both categories report that 52 percent of their customer base Shell Pennzoil
is female, and the percentage of customers who drive foreign 4%
Exxon
37%

and luxury vehicles, as well as pickups, are either identical or 4%

Havoline
very similar. 7%
We did note, however, that customers who frequent lube/ Quaker
wash sites tend to have slightly higher oil change intervals State
7% Mobil Valvoline
(4,469 miles versus 4,310 miles) than customers who frequent 11% 11%
SPECIAL FEATURE: Fast Lubes + Carwashes = Synergy

lube-only sites.

Employees Employees National

It pays to be the owner of a lube/
wash facility. Literally. According
to the data we parsed, the annual
salary paid to owners of lube/wash
sites is nearly $15,000 more than
the salary paid to owners of lube-
only sites. Managers, too, earn
more, though not significantly
($38,310 versus $38,020).
That salary advantage does not
extend to lube techs, however, as
techs at lube/wash sites earn on av-
erage 26 cents per hour less than
(All Stores)
Lubes
Only
Lube &
Carwash
Length of employment for managers 6.7 yrs 6.9 yrs 6.4 yrs
Length of employment for technicians 2.9 yrs 3.0 yrs 2.6 yrs
Starting rate paid to lube techs $8.15 $8.19 $8.01
Hourly rate paid to lube techs $9.30 $9.36 $9.10
Annual salary paid to managers $37,925 $38,020 $38,310
Annual salary paid to owners (if full-time employee) $58,719 $55,030 $70,000
Owners who work: On site 73% 73% 75%
From remote location 27% 27% 25%
Sales
Yearly sales per store: $558,395 $557,022 $566,575
Portion of gross sales used for: Payroll 27.9% 28.0% 27.2%
1

techs at lube-only sites. Not sur-

prisingly, average technician ten- Lease/Mortgage 11.5% 11.8% 11.0%
COGS 29.4% 29.3% 30.2%
2

ure is lower at lube/wash sites than

lube-only sites (2.6 years versus 3.0 Net Profit 12.5% 12.2% 13.0%
years). Operations 3
15.8% 15.8% 15.9%
Other 2.9% 2.9% 2.7%
4

Includes all payroll (taxes included), salary of owner (if “hands-on” employee),
Sales
1

unemployment taxes, Workers’ Compensation, health insurance, bonuses, etc.

Given the car count advantage
held by lube/wash sites, it comes as
no surprise that they hold a small
advantage over lube-only sites
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.

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Best Selling Synthetic Motor Oil in Fast

Lubes with No Carwash

Other
Amsoil
when it comes to yearly sales per lube facility. (Again, keep in up in this data,
Quaker and
State
4%
7%
that is the additional profit center repre-
Other

mind we’re comparing sales for only the fast lube portion of sented by the carwash.
5%
Castrol
TossMobil
the1 sales and profit generated by a
57%
Amsoil

the business, not the overall business.) Lube/wash sites generate carwash of any type onto the pile, and an operator suddenly is
Quaker State
8%
Castrol

an average of $566,575 per year in sales, while lube-only sites looking atPennzoil
a8%much more profitable business, perhaps one reason Pennzoil

generate an average of $557,022 (though it should be noted the why lube/wash owners enjoy a much higher average annual sal-
Valvoline
Valvoline

difference amounts to less than 2.0 percent). ary than do lube-only

11%
owners. S Mobil 1

Given their lower technician wages, lube/wash sites have a

slim advantage in the payroll arena, spending an average of 27.2
percent of annual gross sales on payroll, while lube-only sites Best
Best Selling
Selling
Lubes
Synthetic
Synthetic Motor
Motor
with Carwash
Oil inOil
Fast
in Fast Lubes w/ Carwash
spend an average of 28.0 percent. Lube-only sites enjoy an ad- Quaker
State Other
vantage in cost of goods (12.2 percent versus 13.0 percent), but Castrol 2%
2%
6%

lube/wash sites have a slightly higher pre-tax profit (13.0 per- Havoline
4% Mobil 1
66%
BestBest
Other
Selling
Selling Synthetic
Synthetic Motor
Motor OilFast
Oil in
in Lubes withw/
Fast Lubes
Quaker State Nono
Carwash
Carwash
cent versus 12.2 percent for lube-only sites).
Valvoline
7% Castrol

Havoline
Other
Pennzoil Amsoil
7%
Oil & Equipment 13% Valvoline

Pennzoil
Quaker 4%
State

As we noted earlier, fewer lube/wash sites push “specialty” mo- Mobil 1

5%
Castrol
Mobil 1
57%

tor oil changes using high-mileage, synthetic or lower-cost mo- 8%

tor oil. Not surprisingly, then, the total sales of “house” motor Pennzoil
8%
oil at lube/wash sites is higher than at lube-only sites, with house
motor oil accounting for 83 percent of sales at lube/wash sites Valvoline
SPECIAL FEATURE: Fast Lubes + Carwashes = Synergy

11%

and 77 percent at lube-only sites.

Also not surprising given the
need for hot water at many car-
washes, fully 46 percent of the
lube/wash operators who respond-
ed to our survey noted they imple-
ment used motor oil for heating
purposes. Compare that with only
24 percent of lube-only sites that
do so.
In other areas, lube/wash sites
and lube-only sites share compara-
ble breakdowns in motor oil sales
by type (i.e. conventional, synthet-
ic, diesel, etc.) and by weight/grade
(i.e. 5W-20, 5W-30, etc.).
Final Rinse
Though there are a few notable
differences between lube/wash
sites and lube-only sites, taken as
a whole the two types of fast lube
shops operate surprisingly similar,
with similar sales and profit mar-
gins.
Perhaps the biggest difference,
however, is one that does not show
Oil & Equipment National
(All Stores)
Lubes
Only
Lube &
Carwash
Total sales represented by ”house“ motor oil brand 81% 77% 83%
Customers committed to a specific brand of motor oil 45% 49% 41%
Operations that implement used oil for heating purposes 31% 24% 46%
Operations being paid for their used oil 96% 94% 99%
Amount per gallon $0.51 $0.50 $0.54
Operations invoicing customers for environmental fees 28% 26% 37%
Average amount $1.91 $1.82 $2.16
Per-gallon cost of highest volume bulk oil $7.96 $7.79 $8.37
Overall breakdown of motor oil sales:
Conventional/synthetic blend 72% 72% 70%
High mileage 8% 8% 9%
Full synthetic 10% 10% 9%
Diesel 8% 8% 10%
Other 2% 2% 2%
Operations that sell re-refined motor oil 5% 2% 11%
Overall breakdown of motor oil sales by weight/grade:
5W-20 21% 20% 23%
5W-30 49% 49% 49%
10W-30 19% 20% 18%
5W-40 2% 2% 1%
15W-40 8% 8% 8%
Other 1% 1% 1%

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