Lube Depot was established as a DBA for Roy Family Enterprises in June of 1998. The partners of the company are Mr. Harmon F. Roy and Mr. H. Bryan Roy. Mr. H. Bryan Roy serves as the President of the company, overlooking the daily operations, and Mr. Harmon F. Roy is strictly a silent partner, providing financial and legal support. Lube Depot opened on January 6, 1999 to begin operations in the oil change field, using Pennzoil as its primary affiliation. Through this affiliation, Pennzoil remains their primary oil and filter supplier, and in return pays Lube Depot 60% of costs used for advertising or promotion.
Lube Depot is an oil change service facility, open Monday thru Saturday from 7:30 a.m. until 5:30 p.m. It is located at 1205 Evangeline Thruway, directly across the street from Le Triomphe. Lube Depot offers such services as full service oil change; tire rotations, transmission flush, state inspections, etc. (see Appendix A for list of all services)
Lube Depotís long-term goal is to open other locations in smaller towns surrounding the Lafayette area. Current areas of interest are Abbeville and Opelousas.
PARTNER HARMON F. ROY
Mr. Roy is from Lafayette, LA. He is a Tulane Law School graduate and is the senior partner of Roy, Bivins, Judice, & Henke, located in downtown Lafayette. He is a corporate law attorney, representing companies such as Our Lady of Lourdes, Lafayette General, ULL, and La Fondaís. He contributed the land where Lube Depot is located to Roy Family Enterprises but did not provide start-up capital; therefore, he does not have any liability associated with Lube Depot.
PARTNER H BRYAN ROY
Mr. Roy is from Lafayette, LA and is a graduate of USL Business School. He currently owns H Bryan Roy Construction Co., Inc., and acts as President for Roy Family Scholarship Foundation, Lube Depot, Storage Depot, and Squeaky Clean Carwash. He is held liable for all loans obtained in order to begin operations at Lube Depot.
Land: Donated by Mr. Harmon F. Roy
Building and Equipment: $550,000
Working Capital: $10,000
To provide oil changes and related services to the public at a low-cost, while maintaining a strong relationship with its customers and staff.
Lube Depot possesses a continuous commitment to quality and service.
Stay in touch with and continuously change in order to meet customer needs.
To expand into small surrounding communities who currently do not have upscale oil change facility.
Lube Depot is dedicated to always providing excellent service: changing the motor oil with up to 5 quarts of premium Pennzoil multi-weight oil, replacing the oil filter, lubricating the chassis, checking and topping off fluid levels, where applicable, in the transmission, differential, radiator, battery, etc.
No appointment is necessary. Lube Depot is able to quickly service your vehicle in a professional manner, without you having to take the time to set up an appointment or leave your vehicle for half a day.
Lube Depot is committed to protecting the environment. Be assured that all lubricants and fluids removed from your vehicle are recycled. For instance, used motor oil, gear oil and automatic transmission fluid is hauled away by a licensed contractor and re-refined into heating oil or bunker fuel oil. When your air conditioning system is serviced, the Freon is evacuated from your A/C system and captured. It is then recycled and no Freon is emitted into the atmosphere.
Motor oil is stored in steel storage tanks, which are UL approved; easily accessible and located in leak proof concrete basements. Lube Depot does not have any underground-buried tanks.
Daily sales average $750 cash and credit card and $250 on account.
Monthly cost average
First year annual sales
First year profit
Second year annual sales
Second year profit
Third year annual sales
Third year profit
The average express oil change company will reach its maximum daily car count at the end of year three, if that company is located within an area that is not growing at an extensive rate.
Lube Depot hopes to open another site within five years.
% of dollar spent on oil changes.
Oil change industry sales total
Currently, there are not any oil change companies within close proximity to Lube Depot. Secondary competition is a strong force in the city of Lafayette; with at least seventeen oil change companies and a substantial number of automobile dealers who offer oil change services.
The major competitors in the Lafayette are:
Jack Gardnerís 10-Minute Oil Change
Toddís Carwash and Express Lube
Ambassador Carwash and Lube Express
Pennzoil-Quaker State is Lube Depotís national supplier, providing an
average of $3000 per month.
Lube Depot has two local suppliers:
Prendís Automotive Supply = $1500 per month
Pep Boys = $300 per month
Each of these suppliers aims to deliver the products in an efficient and timely manner while maintaining quality control.
Companies with any number of vehicles or a fleet of trucks.
The average residential customer of Lube Depot is male over the age of 30.
The average fleet customer is male, between the ages of 25 and 35.
Located in an area without any close competitors.
Located in an area that is currently growing at a rapid rate, both residentially and commercially.
No appointment is necessary.
Wide variety of services offered, performed in a timely manner.
Friendly and knowledgeable employees who can help diagnose different problems with your car, even if they are not able to fix it at the depot.
Locally owned and operated by individuals who contribute greatly to the surrounding community.
Able to service 18-wheelers.
Carwash is located on property, and you receive a carwash with every full-service oil change.
Affiliation with Pennzoil.
Lube Depot is not able to do extensive work on vehiclesí body, engine or transmission.
Without appointments, it is first come, first serve, and sometimes the wait can be up to 30 minutes.
Since the job does not require an education, pays only a little over minimum wage and does not offer benefits, turnover is high.
Lack of definite long-term marketing plans.
Profit making has not reached its potential; therefore, resources are scarce.
Extension of I-49 along Evangeline Thruway will allow more traffic to pass directly in front of Lube Depot.
The rapid growth that Broussard is currently experiencing, both residentially and commercially, is predicted to only continue at such a rate.
Competitors building within a close proximity and taking away from Lube Depotsí customer base.
Principle industries in Broussard consist of oil and gas service companies, wholesale food distributors, real estate development, and manufacturing. Broussard currently has an industrial community with over 300 businesses. Lube Depot is able to prosper from such businesses by offering fleet accounts to each of these companies, allowing their vehicles to be serviced and receiving one statement at the end of the month. From the oil industry to tourism, and from shipping to agriculture, the city has built a prosperous economic base and is part of one of the most thriving metropolitan areas in the country. The city of Lafayette, the area's hub, can be reached in less than ten minutes. Broussard is located halfway between Lafayette and New Iberia, the region's second largest city.
Future plans call for a major arterial bypass to junction at Broussard. People have an easy access to all forms of transportation and shipping. The largest arterial in the region, I-10 and I-49, intersects about ten miles from Broussard, and planners expect to extend I-49 south along the route of multi-lane U.S. Highway 90 that now passes through the town and directly in front of Lube Depot. There are approximately 40,000 vehicles that pass along this roadway everyday, and with the extension of I-49 this number is expected to only increase. While less than 4,000 people live in the community of Broussard, it's located near the heart of a trade area of 600,000 people.
Legal environment in Broussard
Few areas offer a more attractive tax and business development climate than Broussard, an area known for low taxes, Broussard has gone a step beyond, eliminating all city property tax on business and residential property.
Many people turned to do-it-yourself oil changes, but environmental
concerns are causing this method to decline in popularity. Because of their busy
lifestyles, many Americans simply donít have the time or the inclination to change
their own oil. In addition, a majority of U.S. households now have two working spouses. This has created a greater dependence on cars, and it has become a major inconvenience to leave a car for half a day or longer to be serviced at a dealerís service department or at one of the remaining full-service gas stations. The switch to the installed motor oil market continues to accelerate, and about half the growth in the installed market is projected to go to the fast lube category, such as Lube Depot. Over the next five years, the fast lube industry will need to expand to service more than 120 million vehicles a year, compared to about 90 million a year in 1998.
Although Lube Depot has not yet developed a distinct marketing strategy, they are somewhat differentiated in their services. For example, a full service oil change includes vacuuming out the vehicle, which is something that many oil change companies do not offer. Lube Depot could build on this type of differentiation by "going the extra mile" with some of their services to give customers more than what they expect.
Lube Depot could also pursue a strategy that focuses on a particular niche, such in the neighborhood of LeTriomphe. Lube Depot could offer special discounts available only to habitants of the neighborhood, and would advertise these discounts only within the neighborhood (perhaps through flyers or mail outs). This type of strategy could also be applied to surrounding businesses.
Since Lube Depot is the only oil change facility in the area, a low-cost strategy should not be pursued at this time. Hopefully, Lube Depot will ward off competitors in this area by being the first oil change facility. However, the area of Broussard is expanding, and if another oil change facility should ever happen to open nearby, a low-cost strategy would need to be considered.
Lube Depot currently offers ladies day on Wednesday, ladies receive two $5.00 automatic carwashes for the price of one. Lube Depot also has a pick-up and drop-off service for their larger fleet accounts. On Thursday, they will go to your office, pick-up your car and drop it back it off, if you call ahead and set up an appointment.
Lube Depot is pursuing customer intimacy as their value discipline, and should continue to maintain this discipline by continually tailoring their services to meet the continuously changing needs of customers.