Tuesday, February 24, 2009
Mobile Oil Changes for Corporate Campuses
Save your time with this one. If you plan for your mobile oil change business to get big off corporate campuses then you better think again. You'd better change directions really fast quite honestly. You cannot build a "profitable business" and I wanted to highlight that just for emphasis off corporate campuses. That is what I was sold on. We would start this a mobile oil change business with a great no fantastic looking van and have a great service and a really great product and after doing just several people at a hospital or big building the phone would be ringing off the hook and we would not be able to keep up with the demand. Our mobile oil change company would grow soo big soo fast that we would need the second van within the first year.
I tell you I was really sold on the whole "corporate campus" idea. And I know now that not only doesn't it work well for my type of business but others as well. It sounds great. You have a building that is comprised of one huge company or hundreds of small to medium sized companies. They are all under one roof you could say. There are can be anywhere from a few thousand employees to over ten thousand employees. Now all those people need oil changes. You I was sold on the fact, and many of you might have been as well, that all you have to do is talk with the human resources manager and find a way to get your name out there to those 1000s of employees. They would love to get their vehicle serviced by a mobile oil change business. Why wouldn't they?? All those employees are going to need several oil changes throughout the year, why not make it more convenient....
I wish the mobile oil change business was that easy. It would have been very nice. Let me cut to the chase and tell you why it did not and does not work. First, when you talk to the building or HR department you are going to have to literally pull teeth to get them to work with you. They are going to think your mobile oil change idea is "cute" but they get people asking them to promote their business all the time. If they promoted every business that asked them then it would turn into a full time job. The most you may get is a mass system wide e-mail sent out that barely anyone reads. And you will be a really good speaker and salesman or saleswoman if you get them to do that. What most companies have is a "work life" program or "discount book" where people like you get into this coupon book that they give out annually to everyone and your coupon would be for like "20% off any oil change" or "$19.99 oil change to all employees and family of XYZ Hospital". And not many people look at their company coupon books. Only the really cheap people will call you, won't want any add ons even if they really need them, and as soon as you raise your prices to the normal rate they will not want to pay it. Doctors, lawyers, nurses, and professionals are some of the cheapest people when it comes to that stuff. They want that really cheap oil change and then they go 6,000 miles on regular oil. They do not care because rarely do any of those people keep their cars more than 2-3 years. Maybe 4 years if they are feeling thrifty. So they Oil Extreme Synthetic was worthless for us as far as they went. In addition to this, many companies or campuses will get very uptight about "oil changes" being done in their parking lot. You can show them or tell them out your mats, how you suck it out, safety procedures and they do not care. Your mobile oil change business is seen as a potential liability to them that they do not want to have or think is worth it. Especially if they promote you. We live in a sue happy world. If they put up fliers, send out e-mails, and actively promote you then they are in way either directly or indirectly partners with you. And if anything goes wrong including damages or accidents while you are doing or have done an oil change then not only can your mobile oil change business be sued but they right high priced lawyer could go after them as well. Which would produce a better settlement you and your 1 million dollar insurance or that company with a 100 million dollar insurance. They have a whole department whose only job is risk control and your "cool service" is not worth them getting sued in the future. And most people do not care about oil changes. Its sounds good but unless the campus really worked with you and advertised you everywhere then people will not be looking for an oil change service especially a mobile one. They will see Jiffy Lube one day, look at their sticker, remember they are 2,000 miles overdue, and go there. You will get a few but most will be cheap and many of them will not turn into repeat business.
And I say this with confidence and two and a half long hard years of going after the corporate campuses. I got a hospital with 10,000 employees, made a deal with Alaska Airlines that went through but was peacemeal and never really pushed, got several deals with other buildings with 4-6,000 people where they send out flyers and e-mails to every company, and Merryl Lynch. None of it ever paid dividends. I really have to thank a friend at Meryl Lynch he really did try. He sent e-mails to all his friends. And we did get 2 or three. But at the end of the day it was not worth it. Do not try to build your mobile oil change business off the individuals or corporate campuses. If you do want some none fleet customers go for construction works or tradesmen. They are very busy people and appreciate a good service. Most of them can do it themselves but do not have the time and are willing to pay a decent price to get it done. Plus a lot of those guys have trucks that they love and keep for years.
So let me say this again. Repetition is the mother of skill and success. As I stated in a previous post your mobile oil change must get 95% of its business from fleets. No buts about that. Do shoot for a 50/50 split. You are a business to business mobile fleet services business. I really want to rename my company. I say mobile oil change but we are really a mobile fleet helper. I see what fleets need, whats hard to get or coordinate and then try to make that as easy as I can while charging reasonable prices but not trying to undercut the going market rate. I love to please but only fleets. I have done the individuals. It used to be fun but its not. I have gone through so much trying to please them and it never paid off in good dollars. My fleet accounts did. And I go out of my way for them. That's why they like me. I try my absolute best to get whatever they need or make whatever I can easier. Oftentimes I have thought my prices for something was high and they thought I was undercharging b/c it was so valuable.
Do not let anyone or any company or any franchise sell you on a stack of cards. Your mobile oil change business is a niche business and it caters to medium to large fleets. You really want diesels but we will get into later. Let me know what your experiences have been in this area. Has anyone go any profitable corporate campuses. ONE???? The owner of the franchise Oil Extreme, though its not a true franchise in any sense of the word, lied to us about having a Microsoft and Boeing contract that never existed through another BS company called DOC 1. HA HA. I was such an idiot. When I think about all the mistakes I made at first its amazing I was able to survive. I must have been blessed big time. I was set on a course for failure but I hope that through this blog I can help other people who are starting or thinking about starting a mobile oil change business succeed and actually make money.
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