Starting your own L/O/F business

[thegentileskeptic]

Firstly, mods: I'm not sure if this is the right place, but it seemed like the best shot. If it isn't, feel free to remove it.

I'm starting my own shop solely for lube oil and filter change stuff, and was hoping to pick the brains of anyone else who's done it. I have some questions to start, but would love to talk further if y'all are inclined.

What was your first year like?

What were some unexpected expenses that came up?

Highest expenses outside of overhead?

Did you work toward/land contracts with local businesses?

What kind of insurance did you pick up?

Or than "don't do it," what advice would you offer to someone like me just striking out in their own?

Thanks in advance!

 

[somewhereweakness]

@thegentileskeptic LOF is the slimmest margin part of most shops, you're gonna be missing a pretty big piece of the pie if all you can do is "refer" people to a place that can fix any issues you find.

You have to give customers something they can't get somewhere else if you're new to the market, like; Cheaper/faster/more convenient/friendlier. Don't pick cheaper, or if you do make it a limited time thing. Give them a reason to come then, once they're there, a reason to come back.

Fleet accounts can be huge, if you could do mobile LOF's for a trucking company or car rental place that'd be almost all you need to do.

You don't have many expenses outside of overhead (assuming you've already purchased all your tools/equipment)

Can't help with the other stuff. Good luck

 

[thegentileskeptic]

@somewhereweakness Thanks for the reply!

I'm gunning for fleet accounts, as there's a number of fleet operators around me, and they take all those vehicles 45+ minutes down the road for changes. If/when this takes off I'm planning to bring on a mechanic to expand services offered, and eventually get a brick and mortar for the residents that have the same issue with distance to help.

It's all academic for now, but I'm in contact with a couple managers and the county commissioner to hopefully pick up their business. Ideally I'll get an agreement with a fleet having similar/same vehicles to make inventory simple, since there's a number of those here too.

I suppose the question is: is convenience and excellent service/work a big enough selling point?

Guess we'll find out.

 

[somewhereweakness]

@thegentileskeptic Ideally it won't have to be, and even if it is the payoff for excellent work is word of mouth which is a waiting game (takes a while to build a good customer base). Employees and margins will be your biggest headaches once you build it up. Don't cut yourself short and don't hire flakes or people that'll leave drain plugs off.

 

[613jono]

@thegentileskeptic My brother is a mechanic -- a very good one. He started out in the lube bay at a dodge dealership and mentioned they lost money on every oil change. It was his job to upsell, brakes, leaks, tires ... Stuff that wasn't always watched carefully. That's where they made their money.

Best of luck dude, seriously.

 

[somewhereweakness]

@613jono a regular car dealers overhead is HUGE...tom....huge....