U.S. quick lubes posted higher average tickets despite a tough economy and growing oil drain intervals, and private-label motor oil products made inroads as a featured motor oil in quick lubes, National Oil & Lube News reported.
Published in the September issue of NOLN, the 2012 Fast Lube Operators Survey compiles data from 4,182 facilities in all 50 U.S. states, looking at quick lubes operations, prices, demographics, employees, sales, products and services.
On the less-than-30 stores side, both the average ticket total and car counts increased, so thats a great sign for the fast-lube operators, NOLN editor Tammy Neal told Lube Report. Another thing we saw was a lot of the prices operators are charging for their add-on services have increased. Some have increased greatly. Its time for operators to think about if theyre charging enough for their services and being paid what they deserve for the great value they offer their customers.
NOLN presents its survey results in two categories: companies operating less than 30 stores, LT30, and companies operating more than 30 stories (MT30), which are the large corporate chains. The average LT30 company operates close to three stores, while the average MT30 has 273.
For LT30 stores, the average cost of goods for a full-service oil change reached $15.99, up 4.3 percent from 2011. Per-gallon bulk lube prices increased 4.6 percent, from an average of $8.65 per gallon paid by a typical fast lube a year ago for its highest-volume bulk oil, to $9.05 this year.
The average ticket total for LT30 stores rose 3.2 percent from $56.29 to $58.07 today. The average number of cars coming in each day for oil changes rose from 30.5 to 31.4 now. The average price of a standard, full-service lube oil and filter change reached $36.20 in the LT30 category, up 3.3 percent from 2011.
Yearly sales per store average almost $633,900 at the smaller fast-lube companies, up from nearly $601,200 last year. As a percentage of gross sales, payroll increased from 27.1 percent to 27.5 percent at LT30s, and the smaller companies average net profit increased from 11.3 percent to 12.1 percent in 2012.
Neal noted that respondents to this years survey tend to operate larger shops than reported before. The number of bays per facility is the highest its ever been, nearly four, she said. That means were seeing an increase in more expansive shops, they also come with bigger price tags.
Pennzoil remained the most popular brand in fast lubes, with 19 percent of LT30s listing it as their house oil. Private label was second with 17 percent. They are followed by Castrol and Mobil (each with 11 percent), Valvoline (10 percent), Shell (8 percent), Havoline (6 percent) and all other brands (18 percent). We saw a really big increase in the use of private-label oil this year, Neal noted. Its a little too soon to tell if thats a trend or a statistical anomaly.
Mobil remains tops in synthetic oil, with 42 percent of LT30 operators listing it as their top-selling synthetic oil. Trailing it are synthetics from Pennzoil (16 percent), Castrol (13 percent), Valvoline (10 percent), Amsoil (4 percent), Havoline (3 percent), Kendall (2 percent) and all others (10 percent).
Total miles driven between oil changes continues to rise, NOLN found. LT30s reported average drain intervals of nearly 4,800 miles, up almost 6 percent over last year. The larger fast-lube companies posted average drain intervals of more than 4,900 miles. Operators report, however, that over half the vehicles they service now are equipped with oil monitors, and these vehicles typically go almost 5,100 miles between changes at LT30 outlets, and over 5,800 miles at the MT30s.
Among LT30 operators, the overall breakdown of motor oil sales by type included conventional and synthetic blend, 59 percent; full synthetic, 15 percent; high mileage, 13 percent; diesel, 9 percent; rerefined or motor oil marketed as green, 2 percent; and other, 2 percent.
The complete 2012 NOLN Fast Lube Operators Survey report is available on the NOLN web site (see www.noln.net) at no charge through Sept. 30, Neal noted, thanks to Citgos sponsorship of this years survey. After that date, it will be archived and available for purchase.