Lube Talk

This month in Lube Talk, our forum of operators discusses end-of-month reports and how they will cope with the introduction of dexos.

Chris Shepanek
Shepanek is chief executive officer of OCH International, Inc., franchisor of Oil Can Henry’s quick oil change centers. There are 86 Oil Can Henry’s centers in Oregon, Washington, California, Arizona, Colorado, Minnesota and Idaho.

Q: What do you track on your end-of-month reports, and how does this information help you run your business?

A: We prepare a comparative statistics report every month for every store in our system. This report tracks sales, car counts and average ticket against budget and prior year to provide a quick snapshot of how a particular store or group of stores is performing. If there is a negative trend, we can respond immediately and take a closer look at operational issues, staffing, marketing, etc., to determine if alternative strategies need to be considered.

Q: How do you plan to cope with the introduction of GM’s dexos motor oil in the coming year?

A: We’re working with our strategic partner, BP/Castrol, to ensure we’re fully prepared for the dexos introduction.

We’re convinced education is the key to building a loyal consumer base. We let our customers stay in their cars so they can watch and listen as our technicians perform their service and so we can educate them about their vehicles and the manufacturers’ recommended services. When dexos is introduced, we’ll explain the oil and the vehicle manufacturer’s guidelines to customers whose vehicles will require dexos.

Nick Vuko
Vuko is the general manager of Quick Nick’s Snappy Lube in Lincoln, Nebraska.

Q: What do you track on your end-of-month reports, and how does this information help you run your business?

A: I track a number of things at the end of the month. I track all of our coupons to see how many were redeemed and what our sales were off each one. I then can calculate if the coupon actually worked by seeing whether or not we made money or if it was a waste of time.

I will then track our sales, car count, ticket average and how many of each service we offer was sold. I have the national average of each service to compare where we are strong and where we need some work.

I then track our bonus program based on how well each technician does for the whole month. I break it down into three categories: hours worked, sales generated and services performed. I came up with a standard of what I believe is performing very well in all three categories, which allows them a percentage of the monthly sales calculation. That calculation is based off four categories that I believe are the most important for my shop to make money: ticket average, labor, increase in sales and shrinkage — this is the term I use for controlling inventory, such as washer fluid, power steering fluid, top offs, etc.

I believe this information helps me run my business because the guys in the shop are on the same page as me. When I see the P&L, my area of concern is what the techs are monitoring, which is awesome.

We started this program a few months ago, and it seems to be working pretty well. With (our computer system) it is easy for the techs to look at where they stand. The second month in effect I actually was down $3,000 in sales from the year before — which is an awful feeling — but doubled my net income because of better control and a lot of help from Bob and Gaylea, my key people.

Q: How do you plan to cope with the introduction of GM’s dexos motor oil in the coming year?

A: This situation feels very similar to when Volkswagen came out and required synthetic oil. People are going to come in and expect an oil change for X dollars and be told that it is going to be X dollars more. That will be the moment where any and all informational material from the Automotive Oil Change Association or National Oil & Lube News will help inform customers of what their cars’ requirements are.

I’m going to have to explore the best possible way to implement dexos into the shop from a pricing point of view. I will have an upcharge applied to it like I do with my synthetics, blends and case oils. I have an extra bulk tank that I may use, or I may purchase another secondary tank and have the guys pump it manually. It is all going to depend on what it is actually going to cost.

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