Kamis, 24 Agustus 2017

Mobile Oil Changing - Personal Cars At Office Buildings Versus Fleets

The other day, I was talking with a start-up entrepreneur considering doing some sort of mobile auto business - you know, something like mobile auto detailing, restoration, repair, or maybe oil changing. There are a ton of interesting business models out there, some franchises some not. Let's talk about this, because I've been involved in car detailing, mobile car washing, and mobile oil changing business models as a franchisor before retirement.

We got onto the subject of fleet services versus personal car services. In auto detailing they call it "retail detail" for personal car owners, and "wholesale detailing" for fleets, car lots, auto auctions, rental car companies, or fleet contracting. I became convinced early on that his main focus being a mechanic was to do some sort of on-site repair, preferably something simple like oil changing. We then talked about fleet vehicles all in a row - production like oil changes versus going to office buildings and doing personal cars.

He agreed with me after I explained the efficiencies of the fleet side of the business and duly noted; "Fleet vehicles definitely appear to be the apex of the industry as far as eliminating potential issues from almost every angle and also in retaining the customer base... 1 customer per fleet vs. 1 per car. There seems to be quite a few decent hurdles to get over to enter into the private sector as a mainstay."

Sure there are ways to overcome hurdles, for instance have a list of customers in advance, know their cars and filters, pick them up at 7AM at NAPA auto parts on the way to your first job - thus, no inventory, if you get walk-ups put them at the end of the line of customers and call NAPA on your smart phone to deliver to the parking lot.

Of course, not everyone who works in an office building wants their oil changed by a mobile oil changing company, and it can be a challenge logistically keeping track of that many customers, or potential customers rather. Generally, only 8% of the people will want their oil changed.

A percentage of people will, a percentage of people will not, but with our current government leadership in office, I'd say the percentage of "nots" is increasing not decreasing, consumer confident issues. One big plus is that the oil change industry tracks new car sales, and lots of cars are being sold today (minus the large numbers of repos due to too easy credit), those new car buyers are more likely during the first 3-years of ownership to make sure they get an oil change. Please consider all this and think on it.



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