T H E T H E

V O II C E V O C E

O F O F

T H E T H E

C A R C A R

C A R E C A R E

II N D U S T R Y N D U S T R Y

Results from the Auto Laundry News

Fast-Lube Survey

2011

he 2011 Auto Laundry News Fast-Lube Survey was conducted through a mailing of questionnaires to fast-lube owners/operators selected at random from our subscriber list as well as certain proprietary lists. The information presented in this report results from an analysis of data provided by 114 respondents throughout the United States. The survey response pool consists of freestanding lube facilities (lubers), combined car wash/lube operations (car washers), combined auto repair/lube businesses (repairmen), and lube centers run in conjunction with businesses other than a car wash or auto repair shop (others). The number of responses from others was too small to justify a separate tabulation. Lubers constitute 18 percent of the current survey participants, car washers account for 57 perTable 1 Survey Respondent Pool Operator Type Freestanding Lube Combined Car Wash/Lube Combined Auto Repair/Lube Other

2011 Fast-Lube Sur vey

Auto Laundry News
Results from the
CATEGORIES
2004 23% 61% 15% 1% 2005 33% 53% 10% 4% 2006 2007 2008 2009 2010 39% 21% 22% 20% 18% 35% 68% 66% 62% 57% 17% 11% 12% 14% 18% 9% 4% 7%

FREESTANDING LUBE LUBE/CAR WASH LUBE/AUTO REPAIR

s or
25

HOW FAR DO CUSTOMERS COME?

mil es

l e ss

29 %

53 % 69 %
90 %
SITE LOCATION BY AREA INCOME LEVEL

il 5 m il m 8
10

es

3m

ile

(% from within 2-mile radius, 3-mile radius, etc.)

14 % 2

100% 80 60 40 20 0
0 13 8 11

89

Freestanding Lube

71

67

73

Lube with Car Wash Overall Average 16

Lube with Auto Repair

11 AVERAGE INCOME

LOW INCOME

UPPER INCOME
29

AUTO LAUNDRY NEWS AUGUST 2011

es less or so less rl ess

or

le mi

16

cent, repairmen make up a further 18 percent, while others represent 7 percent of the total. Table 1 on page 29 provides a six-year perspective. Car Counts Fast-lube operators havent had it this good since 2007, for which 42 percent of survey participants, overall, reported servicing more cars than in the previous year. In the current survey, 41
AVERAGE DAILY TRAFFIC COUNT

FREESTANDING LUBE 23,500 LUBE WITH CAR WASH 26,773 LUBE WITH AUTO REPAIR 21,900

Freestanding Lube Combined Car Wash/Lube Combined Auto Repair/Lube

Single vs. Multiple Sites Category

percent of respondents, overall (23 percent last year), report such progress. Repairmen spoil the average: only 29 percent are able to report improved car counts. Lubers and car washers fared substantially better. Of the former, half serviced more cars (compared to 27 percent last year), while 41 percent of the latter added to their car counts a remarkable improvement over the 19 percent who reported advances last year. Overall, 33 percent of respondents report servicing fewer cars
2007 67% 69% 83% Single Site 2008 2009 92% 62% 61% 66% 100% 100% 2010 80% 76% 70% Multiple Sites 2007 2008 2009 2010 33% 8% 38% 20% 31% 39% 34% 24% 17% 0% 0% 30%

COMMON FASTLUBE SERVICE OFFERINGS

AC CESS TO THE INTERN ET

86% YES
WEBSITE

SERVICE STANDARD MULTI-POINT FAST LUBE/OIL CHANGE SYNTHETIC OIL CHANGE

%OFFERING

AVERAGE PRICE

67% YES

100 95 10 87 18 51 77 82 77 69 38 28

$33.92 $64.04 $38.99 $101.11 $67.85 $65.04 $47.76 $78.41 $60.06 $21.06 $76.30
EMPLOYEE UNIFORMS

RE-REFINED OIL CHANGE TRANSMISSION FLUID DRAIN/FLUSH BRAKE FLUID DRAIN/FLUSH POWER STEERING FLUID DRAIN/FLUSH DIFFERENTIAL FLUID DRAIN/FLUSH RADIATOR FLUSH/FILL

FULL PARTIAL NONE

72% 21% 7%

FUEL-INJECTION CLEANING

WHEEL ROTATION AIR-CONDITIONING SERVICE STATE INSPECTION

30

20

40

60

80

100

AUTO LAUNDRY NEWS AUGUST 2011

Revenues Last year, for the first time in several years, this survey reported a decrease in the overall ticket average per car. The recovery has been swift. Overall, respondents to the current survey report a ticket average of $54.97 ($48.21 last year.) At $55.79, lubers performed the best ($51.67 last year), followed closely by repairmen with $55.18 ($44.50 last year). Car washers bring up the rear with $54.60 ($49.04 last year). After dropping a smidgen from $34.13 in 2009 to $34.05 in the 2010 survey, the overall price of a standard multi-point fast lube/oil change dropped again by a hair to $33.92. Car washers take over from lubers as the price leaders, reporting a $34.48 price point ($33.55 last year). Lubers trail, but not by much, with $32.28 ($35.40 last year). Repairmen take up the middle ground at $34.26. For the first time in three years, a majority of respondents, overall (57 percent), report growth in income compared to the previous year, while only 26 percent report declines. The corresponding figures in last years survey were 32 percent and 49 percent.

than in the previous year. This compared to 59 percent who reported reversals in the 2010 survey. Lubers with lower car counts went from 64 percent of respondents last year to a mere 20 percent in the current survey. Car washers with shrinking numbers declined form 65 percent of respondents in 2010 to 35 percent this year. Repairmen, again, hold the shortest end of the stick, with 42 percent reporting a drop in car counts compared to 25 percent who did so in the previous survey.

Future Operator confidence is returning. While last year a mere 14 percent of survey participants planned to either build or buy a lube and/or car wash facility in the following 12 months, 26 percent in the current survey are so inclined. Lubers are sticking to new lube facilities, exclusively. Car washers, with two exceptions, are limiting themselves to new car washes.

SINGLE/MULTIPLE FAST-LUBE SITE OWNERSHIP

NUMBER OF SITES OPERATORS REPORTING

1 2 3 4 5
MORE THAN

75% 17% 2% 2% 2% 2%
10 20 30 40 50 60 70 80

5
0

OPERATE A SPECIALLY-DESIGNED IMPULSE SALES AREA

AVERAGE GROSS REVENUE PER CAR

FREESTANDING LUBE 30%

$54.97
FAST-LUBE REVENUE AVERAGE GROSS PER CAR AVERAGE MONTHLY GROSS INCOME PER SELF-SERVICE BAY

LUBE WITH CAR WASH 39% LUBE WITH AUTO REPAIR 30%

IN-BAY AUTOMATIC ONLY

$8.67
OPEN SUNDAYS

CONVEYOR ONLY

$15.30

$1,236
AVERAGE GROSS CAR WASH REVENUE PER CUSTOMER

FREESTANDING LUBE 20% LUBE WITH CAR WASH 45% LUBE WITH AUTO REPAIR 30%
31

AUTO LAUNDRY NEWS AUGUST 2011

OPERATORS REPORTING COMPETITION DISCOUNTING

80 70 60 50 40 30 20 10 0

ADVERTISING & PROMOTION

67%

65%
60% 60%

75% ADVERTISE THEIR FACILITIES IN SOME WAY

40%

44% 12% 14%

BILLBOARDS

37% 21%
YELLOW PAGES OTHER

40%

NEWSPAPERS

DIRECT MAIL

RADIO

TV

PERCENTAGE OF RESPONDENTS PLANNING EXPANSION - 2005-2010

Freestanding Lube

Lube with Car Wash Average

Lube with Auto Repair

70% 60% 50% 40% 27% 30% 20% 10%

2005

34% 18%
2006

26% 14%

17%
2007 2008

2009

2010

100

OPERATING EXPENSES (LUBE ONLY) AS PERCENTAGE OF MONTHLY LUBE REVENUES

80

80%

90% 70% 75%

RENT MATERIALS
(i.e. Engine Fluids, Filters,etc.)

11.7 32.4 2.8 23.0 3.8 2.8 0.6 2.3

0 5 10 15 20 25 30 35

60

FACILITY MAINTENANCE LABOR UTILITIES INSURANCE

40

20

CUSTOMER CLAIMS ADVERTISING/ PROMOTIONS

OPERATORS REPORTING OWN DISCOUNTING 34

AUTO LAUNDRY NEWS AUGUST 2011

60 50

50

NUMBER OF FAST LUBES/OIL CHANGES 2010 COMPARED TO 2009

Freestanding Lube

40

41

41 29 30 29

42 35 26 33

Lube with Car Wash

Overall Average

Lube with Auto Repair

30

24

20

20

10

MORE THAN IN 2009

CUSTOMER GENDER

SAME AS IN 2009

FEWER THAN IN 2009

MAJOR BUSINESS CATEGORIES

FREESTANDING LUBE
MALE 49%
FEMALE

Auto Repair 18%

Other 7%

51% Car Wash 57% Freestanding Lube 18%

Car Wash Freestanding Lube Auto Repair Other

LUBE WITH CAR WASH

MALE 53%
FEMALE 47%

LUBE WITH AUTO REPAIR

MALE 51%
FEMALE 49%

LUBE/CAR WASH COMBO PROFILE

COMPETING FAST LUBES IN AREA

Full-Service Car Wash Exterior Only In-Bay Automatic Self-Serve Detail Shop Gasoline Sales C-Store
0 10

55% 45% 30% 30% 52% 0% 12%

20 30 40 50 60

NUMBER OF COMPETITORS

OPERATORS REPORTING

0 1 2 3 4 5
MORE THAN 50

9% 9% 11% 19% 14% 11% 27%

5 10 15 20 25 30

AUTO LAUNDRY NEWS AUGUST 2011

35

AVERAGE NUMBER OF CARS WASHED BY BEST LOCTION PER YEAR

LABOR COSTS

Full Service Exterior only In-Bay Automatic Self Serve

38,900 62,367 13,688 14,200

PARTICIPANTS

LUBE-PROGRAM/FRANCHISE

AVG. WAGE PER HOUR PER EMPLOYEE

FREESTANDING LUBE WITH CAR WASH LUBE WITH AUTO REPAIR

50%

7% PAID MINIMUM WAGE to $8.00 PER HOUR

55% 50%

68% PAID $8.00 to $10.00 PER HOUR 25% PAID OVER $10.00 PER HOUR

AVERAGE NUMBER OF FAST LUBES/OIL CHANGES PER LOCATION FOR THE YEAR

Freestanding: 12,031 With Car Wash: 11,663 With Auto Repair: 10,023
CAR WASH CUSTOMERS WHO PURCHASE FAST-LUBE SERVICES 201 0 INCOME COMPARED TO PREVIOUS YEAR

% Customers UNDER 10% 1 1% - 20%

% Washes Reporting

57%
MORE $ THAN IN 2009

23 29 19 13 13 3
0 5 10

17%
SAME $ AS IN 2009

21% - 35% 36% - 50% 51% - 65% OVER - 65%

26%
FEWER $ THAN IN 2009

36

AUTO LAUNDRY NEWS AUGUST 2011

15

20

25

30