This is dangerous. Watch out for this crap. I am sorry for saying this but these figures are what cause people who get into the Mobile Oil Change business to go bankrupt. These figures are pure wishful thinking. I like Lube on Location, almost bought my van from them, would have way better if I bought my set up from them than Oil Extreme, but even they provide false figures. How are you going to make a decent profit on 10 oil changes per day at $30.00. Please explain to me how??? I really get made about this!! I am dead serious. Anyone who is in the Mobile Oil Change business and is successful can tell you that the following figures are nonsense.
And six days a week?? Hum?? If you get into business to work six days a week than you are stupid. Go work for the school district and you can work 5 days a week with the summer off. Six days. That is not the reason I started my own mobile oil change company. Look at the following figures and totally make a mental note in your head that they are wrong. Sorry if you were excited. I just saved you thousands of dollars.
Again, I am not trying to just be negative. But I am trying to chop up the crap. And there is a lot of crap in the mobile oil change arena. I helped a potential competitor of mine a year ago. He was in the Valley offering oil changes for $25.oo. I sent him an e-mail basically calling him an idiot and asking him to reconsider. He upped it to $40.00. That is still cheap but at least he is not working for free. If your area does not support at least $35 oil changes reconsider this great business opportunity.
SERVICE JUST 10 VEH. A DAY 6 DAYS A WEEK
AVERAGE OIL CHANGE TAKES 10 MINUTES
YEARLY INCOME AT $29.95 PER OIL CHANGE AND INCLUDING OTHER SERVICES. (WIPER BLADES, AIR FILTERS, AND TIRE ROTATIONS)
TOTAL INCOME FROM SALES $121,856.00
EXPENSES:
VAN OR EQUIPMENT PAYMENT IF FINANCED
$4,188.24
INSURANCE, VAN AND OR GARAGE LIABILITY $2,200.00
OPERATION SUPPLIES, FLYERS, INVOICES $900.00
TELEPHONE, PAGER,CELL, OFFICE $1,080.00
UNIFORMS $300.00
ACCOUNTING $960.00
LICENSES $60.00
FUEL $3,600.00
WHSE SPACE 10X10 STORE&LOCK $900.00
COST OF GOODS SOLD $9.00 PER VEH. $24,720.00
OTHER SERVICES WIPERS & AIR FILTERS $7,020.00
WASTE OIL DISPOSAL 10 CENTS A GAL. $936.00
TOTAL EXPENSES $49,864.24
NET PROFIT $66,991.76 PER YEAR
VAN OPERATOR WOULD BE 25% COMMISSION OF GROSS SALES IF MUTIPLE VEHICLE OPERATION
SERVICE 20 VEHICLES A DAY AND NET OVER $100,000.00 PER YEAR AS AN OWNER OPERATOR
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I laughed so hard when I read this article and your opinion as I ran into this same website and was APPALLED at the terrible math, exploded figures, running of switch and bait and complete lack of professionalism (plus the God-awful website!).
ReplyDeleteLet me just tear into this a little bit.
An oil change with their system takes about 20-30 minutes based on their design they are selling and that is being very generous. To say 10 minutes is an outright LIE. Especially when they figure into their calculations of your magnificent profit that you are performing wiper blades, tire rotations, etc. it's still not anywhere close to 30 minutes let alone 10 minutes. I could rant on that lie for a good 10 minutes but I will quickly move on (see what I did there?)
lets look at their figures
10 oil changes/day @ 29.95 = $299.50/day Sales
@ that rate x6days = $1797.00/week Sales
now multiply that by his "6 days a week"
[first you see 2014 has 364 days in the year, so subtract 52 sundays and 10 major public holidays leaves you with 302 working days]
so 302x299.50= $90,449 in Sales
Then you need to deduct your cost right off the bat, and you know what I keep reading through their little spiel and it is literally hurting my head. I can't even point out how many ridiculous calculations they are presenting to us. He is adding annual and monthly figures on the same expense sheet and adding his CoGS on the same sheet. He is not adding quarterly accounting fees and taxes, depreciation on van/equipment Multiple vehicles means employees and even with 10-99's youre going to have taxes, even state, federal and sales tax was not accounted for let alone I would LOVE to see where he financed a $4,000 van loan for let alone getting an equipment loan since loan companies cannot quantify equipment loans themselves because a vehicle has a VIN # and can be seized back when equipment does not. This works the same for insurance at least in my state and most of the fifties I have checked.
Well I am gonna stop since this turned into a ridiculous rant even after I edited out soooo much content here to make this shorter. It just blows my mind how blatantly rude a person can be to lie to your face on their half-assed website.
I made my oil change (Hey! Come Change My Oil) company website for $1.95 and if you can't spend 2 dollars on making a site look like mine then I would never believe in your product or your services.