Owning a Lube Shop

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How about a "Do-it-yourself" lube shop? Customer buys the oil and filter from you. You provide the tools and the shop so they can change the oil. They have a warm facility to do their work in and don't have to worry about disposing of the oil and filter. Insurance may be a problem though.
 
Originally Posted By: otis24
How about a "Do-it-yourself" lube shop? Customer buys the oil and filter from you.

If all he's going to sell/charge for is oil and filters, then he should just open an oil and filter store. Otherwise, maintaining a shop and paying for insurance will just be an added expense. Alas, oil and filter shops are dime a dozen - all the auto part stores sell them and probably for less than what he'd be able to negotiate with the manufacturers.

Personally, I don't see much benefit to such DIY oil change shop. I'd rather do it in the comfort of my garage (even if it's not heated) with the specific oil which the DIY shop may not carry. Tool requirements are minimal. Oil disposal is not an issue - most auto parts will take it. And people who don't have a place to change their oil because they live in an apartment complex that does not allow working on cars? Well, I would expect most of them to be typical JiffyLube clients anyway and not DIY'ers. That's just my opinion, though.
 
Like the "DIY shop" idea, but have heard most army/naval bases actually have "open shop" on certain days of the week, you obviously gotta call up and make an appt....and yea, you bring your own parts, do your own labor, they provide the electricity and tools :p

Heard of one (think I read it on this forums actually) that has an ASE mechanic on duty too, to "help out" for tough jobs (ie: suspension, front end work, etc.....).
 
I know a guy who makes very good money running a house-call mechanic and detailing service. He'll change your oil and detail your car while it sits in your work parking lot.

Most of the work is basic maintenance and diagnostics but many people are willing to pay a hefty surcharge to have someone come and do it while they're working.
 
How much does he charge? I don't see how one can make money on oil change only *unless* one happens to be a BITOG'r and gets all of his oil free after rebate :)

No, seriously, unless he charges double than the dealer, he can not make money on this.

With detailing service, it is at least possible because people who pay for car detailing are usually from upper class.

I am interested in understanding your friend's business model.

- Vikas
 
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You must have missed either the fact that the guy shows up at your workplace to do the oil and filter change there, so convenience for the client, and the fact that he also does detailing work, which gets a pretty penny in the profit department, since it is all just labor and cleaning materials.

So, profit to be had in that department.

And this business model does work.
I do it for motorcycle repairs on weekends.

I specialize in certain bike models, and can bring all the tools needed for certain jobs if the bike isn't ride-able at the time of the service. Tire changes, valve adjustments, carb cleaning, etc all can be done on location.

I've done pretty good in that regards, and you also get word of mouth recommendations to friends of good clients.

BC.
 
Originally Posted By: Vikas

No, seriously, unless he charges double than the dealer, he can not make money on this.

Why would he need to charge double than the dealer? A dealer has a lot of overhead costs that he needs to cover. A one-person traveling mechanic/detailer does not.

And a lot of people are willing to pay premium for the convenience of not having to take their car somewhere for service. So, this business idea actually sounds pretty good to me.
 
I pay $25-$30 for oil change to my mechanic. Can a traveling mechanic make living doing that? If you were to start this business, how much would you charge? Weekend motorcycle repairing is little different because you are not making your living on it.

In my locality a plumber or electrician or HVAC or appliance repair person charges at least $100 just to show up!

Please, there is no disrespect intended in my responses. I am just curious, so please do not take any offense if my wording is coming off wrongly.

- Vikas
 
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Originally Posted By: Vikas
I pay $25-$30 for oil change to my mechanic.

But does he travel to your place of work or home to do the job? This is the premium part of the service for which you can and should charge extra. I haven't sat down to do the math, but I could imagine you could charge $50 for labor + materials on an oil change type job. Then charge another $100 or whatever to detail the car.

Obviously your clients won't be people who only want to pay $19.99 at Jiffy Lube. Your clients will be people who make decent living, say $75+/hr and who have somewhat nicer cars. They'd rather not lose that hour or two driving around getting their oil changed trying to save a few bucks. This is lost time during which they could be making more money so they'll gladly pay someone for the convenience. At least that's how I see it.

But you can't be more expensive than a dealer who will provide you with a free loaner, like most luxury car dealers do.
 
He's not really a friend, more of a coworker's ex-boyfriend.

I want to say a typical oil change ran in the ballpark of $40 or $50. He had many loyal customers and many times, he would wind up doing oil changes for an entire office, when he only showed up to do one.

I really don't know his pricing structure but I know he did a lot of oil changes, changed batteries, scanned for codes, spark plugs, brakes -- Mostly, basic DIY driveway kind of repairs for people who have neither the desire or time to do it. When more serious work was required, he acted as the intermediary to a shop with a lift.

I have no idea how sustainable or profitable this kind of setup is but it always seemed like an interesting idea.
 
The trouble with what you have listed above is with making that as your only job and making living at it. Consider doing an oil change in an employer's parking lot. That is the problem right there! Then you have to get the key from the employee. And then return the key back and collect the money. This now going to cost more time. The only people it would work for are the people who are the bosses at the office!
 
Originally Posted By: Vikas
Consider doing an oil change in an employer's parking lot. That is the problem right there!

Yup. I could see this not working all that well in some cases. Many companies will not allow you to do business on their property.
 
I had trouble getting a CL mechanic to return my calls for some relatively minor (e.g. rear pad replacement on a screw-in type calipers) work and I was willing to pay his asking price. I even gave him extra $20 tip after the work but still getting him again was next to impossible. Obviously, he was doing that as a side work. If anybody is doing this as their main work and running it as a legitimate business (i.e. tax-id and insurance etc), I have yet to come across it, at least in my area.

I understand it is a great idea and I would be the type of customer that he would want but I do not think there are many of my type who would be willing to pay the premium to have steady and enough work to provide for his family.

And that is where my skepticism comes in. I could be jaded because of living in affluent New England suburb but I do not think so.

- Vikas
 
Originally Posted By: Vikas
I pay $25-$30 for oil change to my mechanic. Can a traveling mechanic make living doing that? If you were to start this business, how much would you charge? Weekend motorcycle repairing is little different because you are not making your living on it.


That's just the kicker right there.
I don't do "just" oil changes.
Technically, I don't even charge labor for the oil change.

For the bikes I service, I pretty much have a standard flat rate for each type of service I do. One bike, the price I have as standard for a valve adjustment and carb synch is ~$200. I ask the client that if he has any oil and filter that he wants done at the same time, I will be more than happy to throw those in at the same time.

Most of my costs are straight labor work, and usually the client picks up the parts he needs ahead of time. If I have to pick up parts, like brake pads, I usually charge the cost from the place I buy them, and an additional charge, usually $5 or $10, depending on the source.

And you're right, its just a bit of side work for me.
I have a great reputation on quite a few motorcycle forums, and mostly just work through word of mouth, and good posts from happy forum members is enough to drum up more work.

I even do a bit of mail order carb cleaning work.
Most of that business is in the spring, after people let their bikes sit all winter, and things get plugged up. Send me the carbs, plus $60, and you get them back right quick. That includes shipping.

Its never been my main focus.
It just helps out the communities I participate in, and helps out with gas money every so often.

But, when I feel like drumming up business, I usually have a day were I hold a "1 day teaching event" at my house. I'll pick a topic, like valve adjustment, carb synch, tire changing, and tell the forum a couple weeks in advance that I'm having an open house day, where people can watch and learn. I usually throw in a discounted price if someone wants to be the person having their bike used as the display bike for the demonstrations. I usually get great feedback from those days.

It all depends on what someone's willing to do to make new connections, and earn some extra money. I have thought about picking up a panel van, and running a motorcycle repair business out of that. Then my mortgage comes do, and the thought vanishes away.
smile.gif


BC.
 
That is great! I wish there more of you.

But you have to agree with me that this model is not really scalable in the sense if you decide to quit your day job, this will not pay your mortgage.

Getting back to the topic OP posted, owning a lube shop or becoming a traveling mechanic does not seem to make financial sense.

- Vikas
 
Originally Posted By: kb01
He's not really a friend, more of a coworker's ex-boyfriend.

I want to say a typical oil change ran in the ballpark of $40 or $50. He had many loyal customers and many times, he would wind up doing oil changes for an entire office, when he only showed up to do one.

I really don't know his pricing structure but I know he did a lot of oil changes, changed batteries, scanned for codes, spark plugs, brakes -- Mostly, basic DIY driveway kind of repairs for people who have neither the desire or time to do it. When more serious work was required, he acted as the intermediary to a shop with a lift.

I have no idea how sustainable or profitable this kind of setup is but it always seemed like an interesting idea.


One of my good friends, also a BITOGer, started a mobile auto repair business that only services one brand. He does a lot of 30/60/90k premium services and somewhere in the $600 neighborhood. He does the oil service, all driveline fluids (trans, diff), filters (engine and cabin), belts, spark plugs and brake flush. I think after parts from the dealer and various sources (he only uses OE or Genuine), he still makes a few hundred bucks per car. His business is doing very well and there's a lot of demand for his work.
 
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