We have been studying the labor rates of Oil, Lube and Filter Quick Lube Facilities and we are finding that the pay is lower than you might expect. We also believe this is part of the problem with recruiting and retaining key employees. The average employee at a Quick Lube is a little under $7.00, which is lower than you would expect and certainly lower than the customer is thinking you are paying. This maybe why the average employee only stays employed about 1.8 years and then leaves for greener employment.
A recent survey shoed us that the pay was actually $7.75 and the average employee stayed on 2 years, this is not what we found in our survey talking to people in the business. Of course in our survey we did factor in Wal-Mart quick lubes which so many in the industry deny their existence even though they command over 11% market share and growing at 2% per year, we expect by 4% per year by 2005. The average Manager in the Industry is being paid $32,519.00 yearly from an ASO Magazine and NOLN-National Oil and Lube News. The average manager is staying about 4 years. But we think these numbers will change as competition continued to increase and we are predicting 980 new Oil and Lube buildings to be erected and start business by End of Year 2004.
We have seen in the Pharmacy Business where companies compete for top managers and this will continue into this industry. Lube owners in the same survey showed that they took draws of $54,835.00, which is most likely going to be higher in 2004 judging by the upward trend. Although we saw 440 Lube Companies withdraw from the market in the past 6 months. Mostly due to being too close to Wal-Mart, Lawsuits and employee issues. Which is why this article is a wake-up call. The average in the mobile oil change and on-site fleet oil change business is about $10.00 per hour with incentives. Managers of crews when teams are involved are usually $15.50 per hour plus incentives and average then about $42,000 per year on an annual basis. Owners of mobile units appear to be taking home much less than their fixed site competitors. Although those with many units seem to be doing a higher profit margin over all.
