I Found This to Be Quite Interesting

[CarER]

So, earlier today I was on Ratchet and Wrench Magazine and I ran across this article which I found to be very interesting. (or maybe a mistake?)

 

http://www.ratchetandwrench.com/RatchetWrench/September-2015/My-Auto-Service/

 

What I"m talking about is this: The article states that the shop does 700 vehicles a month with a annual revenue of $550,000. That brings the ARO to about $65.48. Is it a completely different business model than what I'm (or most of us) are striving for? I mean, it doesn't look like a quick lube, but it's the home of the $10 oil change. And in my experience (and I believe in all of yours) doing something like a $10 oil change only brings in the "bottom feeders."

 

Now please don't get me wrong - I am by no means dissing this shop, I do not know them or their business.

 

But it seems that everything that I've ever learned on ASO goes against how this guy is surviving?

 

I just found this article interesting and thought it would start a good discussion.

 

Hope you all are having a great day!

[mspecperformance]

I believe it to be a typo.

[lmcca]

geez, cant be right unless they are doing mostly 10 oil changes.

[phynny]

I'm still stuck on the $10 oil change, I wonder if its watered down cooking oil from McDonalds and they just wash the filter

Edited September 3, 2015 by phynny

[xrac]

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[CARMandP]

way too much work for that little of money...

[alfredauto]

Look at the shop, its a $1m facility easily. Operating expenses have to be $100k a month. No way $550k a year is cutting it. I wonder how many people leave there for $10. Maybe the shop does $500k and slots revenue adds another $2m. Lol

[mspecperformance]

I meant the typo is their ARO. I don't believe their ARO can be that low