5.0.-13.0. EDSR 06-14-1993 - Laserfiche WebLink

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• COMPETITION In all of the selected seven cities, xcept Rochester, there are no quick lubes in existence. Rochester has one bi- level Jiffy Lube in and a very old two bay Rapid Lube which uses lifts and has no drive-through capabilities, both are located in the central part of town. The competition in each of the cities is local car dealerships, tire centers and service stations. Nationally, dealerships make up 10 - 12% of the installer oil change market, tire centers have 12 -14%, and service stations only 8% and that number is dwindling as self-service gasoline stations become the wave of the future. Forecasts over the last six years have clearly indicated that the installer market will increase with quick lubes making the biggest gains and dealerships with a slight increase. The reason for the increase is less do-it-yourselfers and a decrease in the number of service stations. In 1986, the do-it-yourselfers market share was 68%. It is now down to 52% and is diminishing. Several factors are affecting the do-it-yourself market: 1) the "graying of America" --the number of senior citizens is increasing each year and will continue to be a larger portion of the population as baby boomers hit retirement age. Many older people are not physically able to change their own oil and most have more discretionary income so they can afford to have someone else change their oil. 2) increase in incomes --both single and double income families have more discretionary income. Time is a factor as families do not have or want to take the time to work on their own cars. It is easier to pay someone else to S maintain a vehicle. 3) complicated vehicles -- the downsizing of vehicles has complicated the position of oil filters. Cars are more difficult to work on so it is necessary to have a professional work on it who have the proper tools. Indy Lube's bi-level stores enable the lower bay technician to access the oil filter in a better position for removal and installation. 4) environmental concerns --waste oil is a problem for the environment. Do-it-yourselfers dump more oil into the soil and water in a year than 20 Exxon Valdez spills! Regulations will continue to get tougher with retailers having to collect oil and deposits from consumers buying oil. Many mass merchandise retailers will not want to handle the waste oil; therefore, they will not sell oil. This will make it more difficult for the do-it-yourselfer. ? G 5LA'((D IND`'( Lube. (6xv9ANSl orQ5 I N D6% A1,600,-C LkA t ANA TNJ 66s►Nto,D k ►2.IVCa, 1 owAroN Nik {hoc st-lo , , AND clovlt. IN t'CiXL V6IhLS WILL >3k Coto5C+4, kC ( ) Iry DMS'(irJ1, eLk- 4)1V01.- AND ADO.461bl,