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SURVIVING THE GAS CRUNCH
I opened my local Sunday paper to find an article, “Consumer Concern over Gas Prices Reaches Top of the List”, on the center of the front page. Concern over fuel prices has reached the pinnacle of economic worries in most consumers’ minds. This trend will continue. All market forecasts predict continued escalation in fuel prices in the months to come. |
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The sudden spike in gasoline prices has a tendency to negatively affect the preventative maintenance industry. The adverse affect is caused by many factors including;
consumers driving less, less discretionary spending on maintenance and reduced commercial spending because of increased operating costs.
So how do those of us “in the business” minimize this hit to
our car count and sales? You first must define what business |
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you are in. Do you run an “oil change business” or are you a “preventative maintenance specialist”? Get creative and think outside the box. What service can you offer that will actually capitalize on current market concerns? One concept is a “Gas Savings Service”.
Many sources are available to the public that offer tips on increasing fuel economy and reducing gas consumption. The Department of Energy
and Car Care Council are examples |
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of organizations that routinely release suggestions on this topic. These tips include regular oil changes, keeping the engine properly tuned, replacing air filters regularly, keeping proper tire pressure, use the recommended motor oil grade, check the vehicle’s gas cap and avoid aggressive driving and speeding. Many of these suggestions drive the consumer to the front-door of a preventative maintenance facility. Sell a thirsty man water, not peanuts!
Gas Savings Service- “Recommended every 6 months or 6,000 miles to optimize fuel economy”
Pressure check/replacement on gas cap
Check/inflate tire pressure
Air filter check/replacement
2-step fuel system cleaner
Offer a “Gas Savings Service” in addition to your standard LOF service. You would have a minor increase in bay time but margins are great on all these products and services. If you charge an average of $75.00 for this service, your customer will spend $150.00 per year. That $150.00 “investment” can increase fuel economy up to 20%, saving a commuter over $1,200.00 per year. That is a great return–on-investment!
Put the creative minds together within your organization and work on ideas to stay one step ahead of market conditions and the competition. Continue to educate your customer base on the positive benefits your services deliver. Show them that it is a wise investment to keep their vehicle in optimum operating condition, especially in tough economic times.
Another important factor in managing your business in a volatile market is cost management. If sales and car count are flat, cost of goods become more vital than ever. Without sacrificing product quality and service, evaluate your current supply mix. Paying close to $10.00 per gallon for bulk oil will make the road ahead very steep. Also take a look at your inventory mix. Do you stock high-priced inventory that might sell…one day? Inventory consolidation and control can drastically improve your cost of goods. And last, keep a close eye on your labor costs and discretionary spending.
The road that lies ahead may be a bit challenging. Be creative, be proactive, watch your costs, educate your customers and stay in-tune with consumer demand to capitalize on the rapidly changing automotive market.
Shane Terry, President
North American Lubricants, Co.
info@nalube.com
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CAR CARE COUNCIL'S GAS SAVINGS TIPS
In a recent Wall Street Journal/NBC News poll, Americans cite gasoline prices as the economic woe that most affects them. The Car Care Council warns that putting off vehicle care and maintenance can make matters worse. Proper vehicle maintenance will increase miles per gallon.
“The best way to fight higher costs at the gas pump is to keep your vehicle running properly. You can’t control the price of gas, but you can control how much gas you burn by proper maintenance and how you drive,” said Rich White, executive director, Car Care Council. “Performing simple and inexpensive maintenance can save as much as $1,200 a year in gas cost.”
The Car Care Council offers these gas-savings maintenance and driving tips:
• Check your vehicle gas cap. About 17 percent of the vehicles on the roads have gas caps that are either damaged, loose or are missing altogether, causing 147 million gallons of gas to vaporize every year.
• When tires aren’t inflated properly, it’s like driving with the parking brake on, and can cost a mile or two per gallon.
• A dirty spark plug causes misfiring, which wastes fuel. Spark plugs need to be replaced regularly.
• Replacing a clogged air filter can improve gas mileage by as much as 10 percent, saving about 15 cents on a gallon.
• Aggressive driving can lower gas mileage by as much as 22 percent on the highway and five percent on city streets, which results in seven to 49 cents per gallon.
• Sitting idle gets zero miles per gallon. Letting the vehicle warm up for one to two minutes is sufficient.
• Gas mileage decreases rapidly at speeds above 60 mph. Each mph driven over 60 results in an additional 10 cents per gallon. To maintain a constant speed on the highway, cruise control is recommended.
The Car Care Council is the source of information for the “Be Car Care Aware” consumer education campaign promoting the benefits of regular vehicle care, maintenance and repair to consumers. For a free copy of the council’s Car Care Guide or for more information, visit
www.carcare.org
OIL DRAIN INTERVALS & FUEL ECONOMY
The issue of fuel economy is front page news in newspapers and a hot topic on radio talk shows and news telecasts. The automobile manufacturers are finally under fire for putting false fuel economy estimates on new vehicle stickers. It’s about time, although we in the industry recognized a while ago that new vehicles weren’t performing as advertised. It took consumers a little longer to see what was happening and then create enough mass dissent to get EPA’s attention.
Its’ understandable since the system is set up to look like a fuel economy estimate of 21 mpg city/30 mpg highway means the manufacturer has proven, in conjunction with EPA oversight, the vehicle in question actually meets that standard. The discrepancy between new car fuel economy estimates and real world performance has been exacerbated, of course, by the automobile manufacturers push for extended oil drain intervals.
Tests already completed by SAE show that as oil drain intervals push past 3,000 miles, fuel economy decreases. At this point, it looks like that result is inevitable even though motor oils have improved over the years. Some people continue to push the idea that once placed in the crankcase motor oil stays put and doesn’t change in composition. Not true. Additive packages break down, and while that’s happening, motor oil gets consumed during engine use via burning and leakage.
AOCA, with the help of a major manufacturer of fuel products, is developing a scale, based on actual engine performance to when the oil of different-sized engines (4-6 & 8 cylinders) should be changed. I call it the “teeter-totter.” The longer the oil change interval, the lower the fuel economy. It’s simple and gets the point across. When further studies are finished this year, hopefully confirming what SAE has already found, we will explore ways of getting the “teeter-totter” message out to the public.
SAE Technical Paper 982503, Critical Oil Physical Properties that Control the Fuel Economy Performance of General Motors Vehicles, and 982504, Comparison of the Physical and Chemical Changes Occurring in Oils During Aging in Vehicle and Engine Fuel Economy Tests; SAE Technical Paper 2003-01-1957, Effect of Oil Drain Interval on Crankcase Lubricant Quality, “It is widely accepted that fuel consumption in vehicles operated with aged oils rises due to increasing high temperature high shear viscosity, while kinematic viscosity and friction coefficient also play a part…Following the first couple of thousand miles of vehicle operation, the predicted fuel economy improvement gradually decreases with age (fuel consumption increases).”
Spread the word to your customer base that regular oil changes will keep some money in their pocket and out of the gas tank.
Dr. R. Scotti Lee
Oil Change Express
New Castle, DE
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AOCA CONVENTION AND FAST LUBE EXPO TO BE HELD IN ATLANTA IN 2009
We know that there is more and more competition for your dollar as your cost of goods continues to rise, so we are working to make the 2009 AOCA Convention and Fast Lube Expo in Atlanta so valuable, it will pay for itself in new profits and cost savings for your business. Some changes we have already made include changing the original dates of March 28-31, 2009, which were very close to the dates of the ICA Show, to May 26-29, 2009, to be more convenient for exhibitors and attendees who may be attending both shows. The new dates are the four days following the Memorial Day Weekend so you just might have some extra time to come early and see what Atlanta has to offer.
Because we know your time is extremely valuable, and getting away from your business is difficult, we are shortening the expo from three days to two. You will still have approximately 10 full hours of show time, and will have access to all of the great products and services and trade show only deals. Of course there will be a fabulous roster of education sessions to help you meet the challenges of your business, from hiring and training the best people to controlling costs, adding profitable new services, retaining customers in a competitive environment and much more.
Since we know that you learn from talking with your peers as well as attending education sessions, we will offer more open forum discussions and interactive sessions, as well as social events such as a gala Welcome Reception, more food and fun on the trade show floor, and a Closing Reception where you can talk with new and old friends about everything you have learned.
So mark May 26-29, 2009 on your calendar today, and look for more details soon. We’ll see you in Atlanta!
AOCA Manager Training Seminars Held Around the U.S. and Canada
The Toronto Manager Training Seminar in April received rave reviews. The remaining courses for 2008 are:
Dallas
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May 20-21 |
| Chicago |
September 16-17 |
| Portland |
October 7-8 |
| Atlanta |
November 11-12 |
For more information, go to www.aoca.org
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