September 21, 2016
Volume 17 Issue 52
Mixed Bag for Fast Lubes
Although United States quick lubes’ average ticket totals crossed the $71 mark and the average number of oil changes and cars serviced daily increased, average yearly sales per store declined by almost 7 percent from 2015, National Oil & Lube News reported.
Published in NOLN’s September issue, the 2016 Fast Lube Operators Survey compiled data from 5,837 facilities – the most participants since more than 4,000 facilities for its 2007 survey – in all 50 U.S. states, examining quick lube operations, prices, demographics, employees, sales, products and services.
The price of a standard, full-service lube, oil and filter change increased $2.60 to $41.18 for 2016, compared to 2015.
The average ticket total increased to $71.36 for 2016, from $69.01 in 2015. The total cost of goods for a standard, full-service lube oil and filter change increased to $15.34 in 2016, up from $12.91 in 2015.
The average number of oil changes per day edged up to 31.8, adding about 2 oil changes over last year. Average number of cars serviced daily rose to 31.5, compared to 30.6 last year.
Yearly sales per store declined to $646,330, from last year’s $694,189. The portion of gross sales used for net profit rose to 16 percent, compared to 13.6 percent last year, while the portion used for payroll was down to 25.6 percent, from 27.1 percent. The percentage of annual sales composed solely of oil change services rose to 88 percent in 2016, up from 79 percent.
The number of bays per facility declined to 2.3, from 2.9. Equipment costs for fast lube operations rose to $94,000, up from $81,493. The average miles customers drove between oil changes declined to 4,532, down from 4,858 in 2015.
The per-gallon cost of highest volume bulk oil increased to $9.96, compared to $9.74 a year earlier.
Full synthetic engine oils increased to 18 percent of all motor oil sales by quick lubes, from 16 percent in 2015. Synthetic blends leaped to 28 percent from 9 percent in 2015, and the 2016 survey did away with the high-mileage category. Conventional oil accounted for 42 percent, down from 53 percent in 2015. Diesel engine oils accounted for 11 percent, up from 4 percent in 2015. Others accounted for 2 percent.
Among popular motor brands in fast lubes, Pennzoil led with 26 percent of reported sales, followed by Valvoline with 12 percent, Mobil also with 12 percent, Havoline at 10 percent and Castrol with 7 percent. Private label brands accounted for a 23 percent chunk, and other brands for the remaining 10 percent.
Among synthetics carried by fast lubes, Pennzoil led with 24 percent, ahead of Havoline at 18 percent. Remaining shares included Mobil (15 percent), Valvoline (12 percent), Castrol (8 percent), Kendall (5 percent), Service Pro (5 percent) and Amsoil (3 percent). Private label accounted for 3 percent, and other brands for the remaining 9 percent.
The survey’s overall breakdown of motor oil sales by weight/grade showed a strong jump in 0W-20 to a 23 percent share, more than doubling from 11 percent in 2015. NOLN noted that this reflected more cars requiring 0W-20 being on the roadways, and that more quick lube customers are buying new cars that get better miles per gallon. Leading was 5W-20 with 32 percent, unchanged from 2015. Meanwhile, 5W-30 dipped to 30 percent, from 36 percent. Also declining was 10W-30 at 3 percent, down from 10 percent. The remainder included 5W-40 (5 percent), 15W-40 (5 percent) and others accounting for the remaining 2 percent.
The complete 2016 NOLN Fast Lube Operators Survey, sponsored by Chevron, is available on the NOLN website.