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VENDORSpeak

Editor’s Note: Every year at this time, we begin looking at the future. Q: What steps can lube operators/managers take to succeed in today’s
What, we wonder, will the next year hold in store for the fast lube in- challenging economic climate, and how is your company helping op-
dustry? While we could offer our own predictions, we believe it is just as erators achieve that success?
important to hear predictions from those companies with a vested inter- A: In the short term, operators need to continue to sell their custom-
est in the oil change business, the industry’s vendors. That’s why we’ve ers the services they need, when they need them. This not only helps
invited leading vendors to offer their take on the coming year. Following, the ticket average but also provides good customer service at the same
in alphabetical order, are those companies that responded. time, which keeps customers coming back. This is why Auto Data re-
leased an enhanced preventative maintenance service review. This tool
has been extremely successful in raising our customers’ ticket averages
Amsoil by educating their customers with an easy to understand report of what
1.800.777.8491 services need to be performed when.
www.amsoil.com In the long term, today’s operator should keep an eye on how their
service offering may be changing or expanding. As the new CAFE
Ed Newman, director of Advertising: (Corporate Average Fuel Economy) standards take effect, we may see
synthetic oil take a much larger role in the fast lube of the future. Syn-
Q: How do you predict the fast lube industry will fare in 2010? thetic oil may become a requirement of the manufacturers in order to
A: A typical method for predicting the future is to review the past and achieve more demanding milege standards. While electric and hybrid
study the trend lines, then ask if there will be any significant circum- cars may not be the overall market choice, they will continue to gain
stances to alter the course. Two trends have been apparent the past 10 market share and will require traditional and newer services. Adapting
years: We’re seeing an increase in the adoption of extended oil change to the changing automotive service environment will be crucial to the
intervals as well as an increase in the acceptance of synthetic and spe- long-term growth of our industry.
cialty oils, in part caused by consumer awareness and the increased
number of OEMs adopting synthetics for their factory fills, including
GM’s 2010 Chevy Camaro. Automotive Oil Change Association
We’ve noticed a slight increase in do-it-yourself (DIY) maintenance 1.800.331.0329
since last year’s recession hit, but in general people who have vehicles www.aoca.org
remain committed to their maintenance, maybe even more so since
they’re planning to keep them longer. David Saddler, executive director:

Q: What steps can lube operators/managers take to succeed in today’s Q: How do you predict the fast lube industry will fare in 2010?
challenging economic climate, and how is your company helping op- A: I am optimistic about 2010. History says that recovery from deep
erators achieve that success? recessions takes time. Jobs and spending often lag behind positive eco-
A: By being aware of the many benefits of synthetic motor oils — pro- nomic movement. I am extremely optimistic for service companies in
tection, performance, life cycle cost advantages and the convenience a business as relevant as fast lubes, particularly those that consistently
and environmental benefits of extended drains — lube operators can improve operations, diversify services, train employees and know their
capture a larger portion of this expanding niche. Amsoil maintains an markets.
uncompromising commitment to premium quality lubricants, which Fast lubes are positioned beautifully to become trusted experts in
gives lube operators confidence in recommending Amsoil to motor- their communities. Is there a better message for increasingly demand-
ists. ing consumers than to say your services lower the cost of their vehicles,
help retain the vehicle’s value, save fuel and reduce emissions?

Auto Data Q: What steps can lube operators/managers take to succeed in today’s
1.800.767.7580 challenging economic climate, and how is your company helping op-
www.autodatainc.com erators achieve that success?
A: One, fast lubes should be very aware of operational costs. Improv-
Craig Harris, national sales manager: ing inventory control and communicating with vendors about service
levels are important. Second, well trained employees dramatically im-
Q: How do you predict the fast lube industry will fare in 2010? prove profitability. If employees — because of lack of knowledge or
A: Overall, I am optimistic about the industry in 2010. The good op- confidence — do not recommend needed services, then a disservice is
erators will continue to grow or maintain their ticket averages, and a done and revenue is left on the table. Third, fast lubes should scan the
rise in car counts may even be possible given the number of dealership landscape for additional services to offer.
closings in 2009. Saturated markets saw traditional lube center com- Like our members, I think AOCA is positioned beautifully. Mem-
petitors close as well, so there should be opportunity out there. bers gain access to information to help in operational improvements.
Our training programs provide both expertise and confidence for

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VENDORSpeak
employees who in turn provide great service. The International Fast A: We strongly believe that 2010 will be a rebound year for our indus-
Lube Expo, or iFLEX, presented by AOCA, is the only event of its kind try. Consumers are keeping their cars longer, and therefore have placed
dedicated to this business and is the place to solidify relationships with a greater emphasis on regular maintenance. This pattern will play a key
existing vendors, meet new vendors with potential new services, learn role in the profitability of lube centers. But the lube centers must con-
trends and opportunities in educational sessions and to leverage the tinue to provide outstanding customer service and offer high quality
best association benefit there is, building a go-to peer network. products and services in order to capture their piece of the pie.

Q: What steps can lube operators/managers take to succeed in today’s


BP Lubricants/Castrol challenging economic climate, and how is your company helping op-
1.888.CASTROL erators achieve that success?
www.castrol.com/installers A: Again, lube owners must be committed to customer service excel-
lence. They must focus on consumer needs and help them understand
Dan Kaus, workshops brand manager: how maintenance services can help extend the life of their vehicle and,
therefore, save them money. Run-Rite’s trademark is “Products, Pro-
Q: How do you predict the fast lube industry will fare in 2010? grams and People.” Our programs are designed to educate, stimulate
A: It will be a challenging year as consumers struggle to find their new and motivate the lube center’s counter personnel and technicians alike.
norm. Although unemployment may ebb, there will likely be an en- Along with this, we continue to provide a variety of new services that
during impact on consumer spending patterns based upon the current address specific customer concerns and needs, such as F.A.Q. Cabin Air
economic conditions. Cleaning, Headlight Restoration, and Fuel Shot — which can improve
The good news is cars will always be dear to the American heart, so fuel economy for up to 5,000 miles. All of these are quick and easy to
the true question is how will the fast lube industry adapt to best meet use and install, but are also highly effective. When the consumer sees
consumers’ needs in this new world? the results, their trust in the lube center grows and their loyalty to that
center increases. That means they’ll return for their maintenance ser-
Q: What steps can lube operators/managers take to succeed in today’s vices again and again.
challenging economic climate, and how is your company helping op-
erators achieve that success?
A: Much like a sports team, lube operators and managers need to make eGenuity
sure their team’s fundamentals are strong as they constantly look for 1.800.296.0177
new ways of putting points on the board. By “fundamentals,” I mean www.egenuity.com
building trust with customers by delivering exceptional customer ser-
vice through well trained staff and quality products. To survive, you Brad Boyles, marketing associate:
need to do this while always maintaining an eye on the bottom line.
But who’s happy merely surviving? Studies show that companies that Q: How do you predict the fast lube industry will fare in 2010?
continue to market during recessions perform many times better com- A: Fast lube operators are a resilient bunch, and they will continue to
ing out of a recession than those that don’t. What have you done lately find ways to reduce cost as they continue to provide high quality and
to increase the visibility of your business? Furthermore, you can’t ex- valuable services to their customers. As the current economy declines,
pect results to change if you don’t do things differently. What are you we recognize that survival is going to be tough for some operators.
doing differently to drive better results? What ways can you innovate However, as the economy bounces back, lube operators will bounce
to “put points on the board?” back and will be much stronger because of the knowledge they gained
In addition to high quality lubricants, at Castrol we have many tools from the experience.
to help our customers meet and exceed the needs of their consum-
ers. Whether it’s our world-class training program, innovative imaging Q: What steps can lube operators/managers take to succeed in today’s
programs or car count-driving promotions, Castrol has solutions to challenging economic climate, and how is your company helping op-
help operators thrive in this tough economic environment and best erators achieve that success?
position themselves for success in the looming recovery. A: This past year has been filled with some very real challenges, but
eGenuity has met those challenges head on. The result is better prod-
ucts, better service and significant growth. Right now it is critical to
C.A.T. Products, Inc. (Run-Rite) find ways to stay efficient while minimizing costs. eGenuity has fo-
1.800.872.8921 cused on providing customers with new, money-saving options, and
www.run-rite.com we continue to form relationships with affordable and reliable vendors.
Powerful technology and affordability have always made up the core of
Javan Stallard, vice president of Sales: eGenuity’s software but now, more than ever, customers are realizing
just how valuable that is.
Q: How do you predict the fast lube industry will fare in 2010?

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VENDORSpeak
Fast Track Lube Supply Q: What steps can lube operators/managers take to succeed in today’s
1.877.362.9082 challenging economic climate, and how is your company helping op-
www.ftlsupply.com erators achieve that success?
A: Automotive manufacturers are extending the duration of their new
Sam McCarver, sales representative: car warranties, some for as long as 10 years. With these extended war-
ranties come extended risks and liabilities. To better manage warranty
Q: How do you predict the fast lube industry will fare in 2010? and service issues, OE companies including Ford, Kia and Hyundai are
A: I believe that the fast lube industry has a positive outlook for 2010. utilizing Fluid Rx diagnostics in combination with time/mileage rec-
With today’s vehicles featuring cutting-edge technology, it is becom- ommendations to provide a more complete and comprehensive meth-
ing more and more commonplace for individuals to have their vehicles od to identify needed fluid services and to communicate that need to
serviced by professionals. Additionally, the usual fast lube customer is their customers.
generally strapped for time, which raises the appeal of a facility that Fluid Rx, a company built on research and development, has pio-
can have their oil changed and fluids checked for them in little to no neered fluid diagnostics technology into a tool for identifying and rec-
time. Considering these facts and the technological advances made to ommending needed fluid services. Showing Fluid Rx results to your
increase the productivity of fast lube technicians, there is no reason to customer instills confidence in your service recommendations.
think that the industry will not proceed in a positive light in 2010. Using Fluid Rx increases billable amounts far beyond the routine oil
and filter change and is a valuable tool in customer relations, retention
Q: What steps can lube operators/managers take to succeed in today’s and consumer confidence.
challenging economic climate, and how is your company helping op-
erators achieve that success?
A: You have to source your products at the best prices. Shop around! Integrated Services, Inc. (ISI)
An oil change generally goes for about the same price no matter where 1.800.922.3099
you are, but if you can source your products for less, then you have just www.ints.com
increased your bottom line. The money is on the buying end more so
than on the selling end when it comes to this type of service. Steve Barram, CEO:
However, it is important to not sacrifice quality when it comes to
this principle. With this thinking in mind, Fast Track Lube Supply of- Q: How do you predict the fast lube industry will fare in 2010?
fers the Prime Guard brand of filters to fast lube owners and operators A: The reduction of dealer service bays during 2008-2009, an increas-
nationwide. It is a brand that signifies economic wisdom while main- ing average vehicle age and an economic recovery provide hope for
taining superior quality. Fast Track’s goal is to aid you in reaching your improved profitability in the fast lube industry during 2010. However,
goal. operators will likely continue to be under pressure from high oil pric-
es, extended service intervals, moderated consumer spending, fewer
driving miles and competition from other car care industry segments.
Fluid Rx, Inc. The competition will be intense as the industry consolidates further in
1.877.358.4379 2010. Ultimately, strong and adaptive operators in good locations will
www.fluidrx.com thrive.

Ron McElroy, president: Q: What steps can lube operators/managers take to succeed in today’s
challenging economic climate, and how is your company helping op-
Q: How do you predict the fast lube industry will fare in 2010? erators achieve that success?
A: Owners are keeping their cars longer. Your customers know the per- A: The current economic climate is forcing operators to focus on
formance and reliability of their vehicle are dependent on the quality achieving operational efficiency and providing an exceptional custom-
of the services you provide. Just like mechanical components of a car, er experience.
vital fluids can break down prematurely and go unchecked. Incorpo- Delivering a superior customer experience through quality products
rating fluid diagnostics in concert with time/mileage guidelines helps and customer service will play a crucial role in acquiring and retaining
identify needed fluid services and instills confidence in your recom- customers throughout 2010. Operators who execute effective strategies
mendations. in achieving both will build themselves a platform for success through-
Fluid diagnostics sells needed fluid services and bolsters customer out the coming years.
loyalty and retention. Showing fluid diagnostics results to your cus- ISI is committed to delivering value to the fast lube industry, and in
tomer instills confidence in your fluid service recommendations. For 2010 we look forward to offering our customers powerful, cost-effective
forward-thinking lube operators and managers who incorporate fluid tools for streamlining operations and enhancing customer service.
diagnostics in their presentations, 2010 opportunities can be a year of
great reward.

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VENDORSpeak
Lucas Oil Products Inc. A: I think the industry will start to see some increased business in
1.800.342.2512 the second half of the year. The economy should continue to improve
www.lucasoil.com slightly, and the public should drive a little more and do more mainte-
nance as they keep their vehicles longer.
Sam Dale, vice president Sales and Marketing:
Q: What steps can lube operators/managers take to succeed in today’s
Q: How do you predict the fast lube industry will fare in 2010? challenging economic climate, and how is your company helping op-
A: I believe 2010 will be a recovery year for those shops willing to erators achieve that success?
advertise their services and market their skills. A: With everybody working to improve their services, I believe the
winners in the neighborhood battle for business will be the shops that
Q: What steps can lube operators/managers take to succeed in today’s out-market their competition. Our company has added targeted, mea-
challenging economic climate, and how is your company helping op- surable, direct marketing programs that bring immediate business.
erators achieve that success?
A: Move customers to a premium oil change and sell the concept of less
frequent oil changes as a cost-saving feature, not just a ticket increase. North American Lubricants
1.800.430.6252
www.nalube.com
Mighty Distributing System of America
1.800.829.3900 Gavin Hensing, central region sales manager:
www.mightyautoparts.com
Q: How do you predict the fast lube industry will fare in 2010?
Ken Voelker, president: A: I believe 2010 can be a banner year for our industry. Current eco-
nomic conditions have forced customers to hold onto their vehicles
Q: How do you predict the fast lube industry will fare in 2010? longer. As a result, customers have added incentive to take better care
A: There are still many challenges facing the overall economy and the of their current vehicles. This represents a tremendous opportunity
industry, but 2010 should be better than 2009. Consumer confidence and opens the doors to a lot of the premium services that were an af-
and spending are gradually showing signs of improvement. As con- terthought when people traded their vehicles in every couple years.
sumers continue to hold onto their vehicles longer, there is a need for Those able to recognize and capitalize on the increased need for quality
more preventive maintenance work to be performed. vehicle maintenance will enjoy a successful 2010.

Q: What steps can lube operators/managers take to succeed in today’s Q: What steps can lube operators/managers take to succeed in today’s
challenging economic climate, and how is your company helping op- challenging economic climate, and how is your company helping op-
erators achieve that success? erators achieve that success?
A: Selecting the right vendor that is truly interested in assisting the lube A: I believe an operator’s success will be determined by three factors:
operator/manager achieve their sales and revenue goals is the first step creativity, flexibility and adaptability. Amidst these days of oversatura-
in the process. Preventive maintenance products and services will con- tion and $14.99 oil changes, the same canned approach is not going
tinue to be Mighty’s focus for 2010. We will be focusing our efforts on to work. Operators need to step out with creative product offerings to
the vehicle inspection process with a new free booklet that combines differentiate themselves from their competitor across the street. Ad-
the best practices from industry leading lube operators/managers. ditionally, with GF-5, diesel exhaust fluid (DEF) and dexos on the ho-
In addition, we have introduced several new products (batteries, rizon, operators need to start formulating a game plan how to integrate
packaged motor oil and a headlamp restoration kit) to assist in adding these new products. Operators able to adapt to the many changes our
revenue and profits to the bottom line of our business partners. As we industry will see in 2010 will flourish.
have done in the past, Mighty will provide our customers with quality At North American Lubricants, we will continue to seek new and in-
products, training, inventory management and award winning prod- novative products like our PureGreen re-refined line, Puratech Perfor-
uct information tools that add value to their daily business. mance Chemical line and Puratech DEF to help operators offer added
value to the customer. Additionally, we will continue to aid the indus-
try with lowered COGS, on-site product training, marketing support
Moving Targets and successful implementation of premium services.
1.800.926.2451
www.movingtargets.com
PM Attendant
Jay Siff, CEO: 1.866.341.7449
www.pmattendant.com
Q: How do you predict the fast lube industry will fare in 2010?

58 www.noln.net  
Ricardo Colon, president: Service Champ
1.800.221.0216
Q: How do you predict the fast lube industry will fare in 2010? www.servicechamp.com
A: The fast lube industry has withstood a wave of uncertainty over the
past few years that has resulted in owners becoming more resilient. Kevin Gibbons, senior vice president:
Owners will continue to face extended drain intervals, lower profit
margins and customers who are just driving less. Those who adapt to Q: How do you predict the fast lube industry will fare in 2010?
changing economic times quickly will succeed and even prosper. A: All signs point to a strong year for 2010. The average car age has
never been older, there are significantly fewer independent service fa-
Q: What steps can lube operators/managers take to succeed in today’s cilities and new car dealers continue to close. Add to this a growing
challenging economic climate, and how is your company helping op- and aging population and an overall car population that is at a record
erators achieve that success? high. The economy of the last year has shown us all significantly less
A: There are a number of steps owners can take to succeed during these employee turnover and the chance to upgrade current staffs. The pric-
economic times: 1) Review and add maintenance services that have fast ing pressure of the last few years stabilized and in some areas we saw a
turnaround, higher profit margins and fit the existing layout of your modest rollback in prices. All of this adds up to some great opportuni-
facility; 2) Inform customers these services are available — customers ties for our industry. The unemployment figures will be a challenge and
today do not have time to go to multiple shops to get maintenance ser- fuel prices can always change quickly, but these have been variables
vices done, as the day of the LOF-only shop is long gone; 3) Bundle ser- as long as most of us have been in business. We are all very excited at
vices together as promotions. This can be promoted without giving up Service Champ for a great 2010.
profit margins and keeping the core business intact without discounts.
Most important is to use PM Attendant to coordinate the services Q: What steps can lube operators/managers take to succeed in today’s
when they are due, inform customers and keep track of what works challenging economic climate, and how is your company helping op-
and what doesn’t so the lube shop can be proactive. erators achieve that success?
The steps we have taken over the past few years have resulted in a 50 A: There is constant media news that business is bad and everyone is
percent increase in business this year. Our number-one goal is to give losing their job. While there are many challenges we are facing, there
our customers the features they request without tying them down to are still 160 million people going to work every day, and likely doing
long contracts. Our customers praise us for both features and support. so in a car. For every person who declines a service due to a tightening
budget, there is a person who wants to do what is necessary to keep
their car running because a new car or major repair is not an option.
QMI We continue to share the successes we see with our customers with
1.800.255.8138 others and are working harder to be as competitive as possible with
www.ftautomotive.com our program.

David Prange, quick lube segment manager:


Unilube Systems
Q: How do you predict the fast lube industry will fare in 2010? 1.800.326.1711
A: I feel bullish on our industry for 2010. Consumers should continue www.unilube.com
to postpone new (or used) car purchases as rising unemployment con-
tinues to erode confidence for large purchases. This will result in an ev- Sue Wenger, controller:
er-aging fleet on the road, the drivers of which will want to do all they
can to maintain their transportation. And with shrinking dealership Q: How do you predict the fast lube industry will fare in 2010?
service bays, that will bring them to your door in increasing numbers. A: We believe there will be growth in the overall industry in 2010;
current storeowners will see an increase in gross sales, and new facili-
Q: What steps can lube operators/managers take to succeed in today’s ties will be opening. Older facilities will change owners and be refur-
challenging economic climate, and how is your company helping op- bished.
erators achieve that success?
A: These new customers are going to demand the best from you — the Q: What steps can lube operators/managers take to succeed in today’s
best facilities, employees and experience. Training will remain critical challenging economic climate, and how is your company helping op-
in all areas. Try hard to get to AOCA iFLEX 2010, a Great American erators achieve that success?
Training Roadshow or a regional seminar to dial up your team’s skills A: Financial success is always linked to financial responsibility, mini-
and quality of service. Use the higher unemployment rate to upgrade mizing costs wherever feasible and minimizing risk by keeping facili-
the quality of your staff. Be careful not to add more services unless you ties and equipment in prime condition. The buying public is still a
have the current menu productively humming. Adding new services discriminating market, so facilities also need to be aesthetically pleas-
can reduce employee focus and trade ticket average dollars. ing.  S

December 2009 59

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