Is The Mobile Oil Change Business Model Viable? How About in Texas?
The other day someone from Texas, the Dallas Fort Worth region, asked me if I believed, based on my experiences in the mobile oil change sector, if such a business model like this was; "worth the effort?" Okay so, this is a decent question isn't it? Especially if someone is considering entering this type of business, or preparing a business plan to do so.
Now then here is my answer below.
Yes and no, and of course it depends, for instance we must remember that traffic is heavy in the D/FW area, and travel time between jobs is a big efficiency killer.
Next, the business model is viable if the market mix is correct.
Strictly doing personal cars for wealthy individuals is not such a good business model - specialty oils in upper-end automobiles required by the warranty, and so the manufacturer can meet rules on mileage.
Stocking all different sorts of filters and specialty oils is tough for higher-end and exotic cars.
There are other market segments definitely worthy and viable.
For example; oil changes in large parking structures - amenities programs - is decent business with proper scheduling, good management, and clean-cut crews - well trained.
Also, there is Corporate Office lot oil changes, this segment is OK, but not as good as you might think so be weary of penciling out any sort of proforma there if you are putting together a business plan.
Fleet business is good, but I do bet there is some competition, and the owner of such a business might not be the right "personality displacement" for sales when talking to fleet owners of trucking companies, so in that case, and you would need hire the right type to do sales.
Large corporations that have fleets might require someone who knows how to walk and talk in that world.
Next, the gentleman asks one of the most common questions of all - what sort of equipment should I use, can I get into the business without a full-on expensive unit and lots of equipment? Perhaps working out of a pick-up truck for instance? Okay so, very good question and there are various vendors out there with different theories of operations.
Some use oil-evac systems for instance, others save money by co-branding with a chain of quick lubes for waste oil and inventory.
Also access to customer lists and sales leads.
Consider if you will the amount of fleet business, motor homes, boats (good number of toys in D/FW area that need mobile service + on-site equipment), which the Quick Lubes cannot do, but have folks asking for.
When it comes to equipment of course, well you'll need the basics.
I have seen a number of turn-key, well, let's call it "semi-turnkey" systems - van and equipment, or equipment on a skid or sled to put into the back of a Dually or full size pick-up or Van with "ambulance suspension" for instance.
Trailer mounted units are okay - good signage, and you'll pick up customers while in traffic - and you have plenty of that where you are at.
Now then, most of the systems I've seen run very low end - $4,900 - mid-range $10,500 and deluxe 15k and up.
It depends on your intended market mix and market segments, how you plan to attack this.
Indeed, I hope you learned something today here, as always be well, live well, and live longest!
Now then here is my answer below.
Yes and no, and of course it depends, for instance we must remember that traffic is heavy in the D/FW area, and travel time between jobs is a big efficiency killer.
Next, the business model is viable if the market mix is correct.
Strictly doing personal cars for wealthy individuals is not such a good business model - specialty oils in upper-end automobiles required by the warranty, and so the manufacturer can meet rules on mileage.
Stocking all different sorts of filters and specialty oils is tough for higher-end and exotic cars.
There are other market segments definitely worthy and viable.
For example; oil changes in large parking structures - amenities programs - is decent business with proper scheduling, good management, and clean-cut crews - well trained.
Also, there is Corporate Office lot oil changes, this segment is OK, but not as good as you might think so be weary of penciling out any sort of proforma there if you are putting together a business plan.
Fleet business is good, but I do bet there is some competition, and the owner of such a business might not be the right "personality displacement" for sales when talking to fleet owners of trucking companies, so in that case, and you would need hire the right type to do sales.
Large corporations that have fleets might require someone who knows how to walk and talk in that world.
Next, the gentleman asks one of the most common questions of all - what sort of equipment should I use, can I get into the business without a full-on expensive unit and lots of equipment? Perhaps working out of a pick-up truck for instance? Okay so, very good question and there are various vendors out there with different theories of operations.
Some use oil-evac systems for instance, others save money by co-branding with a chain of quick lubes for waste oil and inventory.
Also access to customer lists and sales leads.
Consider if you will the amount of fleet business, motor homes, boats (good number of toys in D/FW area that need mobile service + on-site equipment), which the Quick Lubes cannot do, but have folks asking for.
When it comes to equipment of course, well you'll need the basics.
I have seen a number of turn-key, well, let's call it "semi-turnkey" systems - van and equipment, or equipment on a skid or sled to put into the back of a Dually or full size pick-up or Van with "ambulance suspension" for instance.
Trailer mounted units are okay - good signage, and you'll pick up customers while in traffic - and you have plenty of that where you are at.
Now then, most of the systems I've seen run very low end - $4,900 - mid-range $10,500 and deluxe 15k and up.
It depends on your intended market mix and market segments, how you plan to attack this.
Indeed, I hope you learned something today here, as always be well, live well, and live longest!