What do the most profitable quick lubes do differently from their poorer brethren? According to a survey released this week by the Automotive Oil Change Association, higher profit firms give a few more discounts, buy a little more advertising, and spend a little less on the lubes and other goods sold. But the most significant difference is operating expense control.
The 2007 AOCA Cost of Doing Business Survey shows that high profit firms spend 52.5 percent of total sales revenues for operating expenses, compared to 58 percent of sales spent by all quick lubes. Salaries, rental expenses and insurance are among the categories where the more profitable firms are better able to control expenses.