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It’s only natural with the flipping of the calendar to a new year to begin wondering about the future. What will 2013 hold in store for the fast lube industry? Are there developments for which lube operators can prepare now that will give them a competitive

edge? While we could offer our answers to these questions, we wanted to hear from those companies with a vested interest in the success of the fast lube business, namely those leading industry vendors. That’s why we’ve invited them to offer their take on the coming year, as well as discuss the biggest changes to occur in recent years. Following, in alphabetical order, are the vendor companies that responded to our invitation.

EDITOR’S NOTE:

AMSOIL, INC.800.777.8491www.amsoil.com

Ed Newman, director of Advertising

What is the biggest operational challenge facing fast lube operators right now?It’s difficult to name any one issue as being more dominant over the rest, but here are a few of the issues we see. DIFM motor-ists have many other things on their minds besides taking care of their cars. Finding ways to educate customers so they can make good choices with regard to taking care of their vehicles is always going to be a challenge. Helping them understand that premium synthetic lubricants might cost more up front but can actually cost less in the long run is counterintuitive for many people.

  More and more OEMs are increasing their recommended drain intervals and also recommending synthetics. Lube op-erators need to address these changes by understanding the benefits of synthetics for the customer and the profitability for shops when properly priced. Many lube operators need to have a paradigm shift in their own thinking on all these matters.

 It probably goes without saying that car dealerships continue to devise ways to keep our potential lube customers going back to their maintenance bays. This will continue to be an ongoing issue for the foreseeable future.

 How do you predict the fast lube/auto-motive maintenance industry will fare

in 2013, and what developments do you predict the industry will see?If consumer confidence keeps rising as is predicted, there will likely be more people buying new cars next year. New car buyers tend to be tied to the auto dealerships due to their warranty arrangements. Neverthe-less, there seems to be no slowdown in the growth of the do-it-for-me motorist sector. DIFM motorists will continue to want the convenience of fewer oil changes and quick fixes for all their car needs. This hunger for convenience and continued adoption of “green consciousness” will continue to drive growth of synthetic motor oil sales. 

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AUTO DATA800.767.7580www.autodatainc.com

Craig Harris, national sales manager

What is the biggest operational challenge facing fast lube operators right now? Two words: car counts. I have heard it in the past and continue to hear it. A combination of things contribute to this problem, includ-ing high gas prices, extended drain intervals and an overall poor economy. Today’s con-sumer is driving less and has less income to properly maintain their vehicle. What this means to today’s operator is that retaining customers and building customer loyalty is paramount. This is why Auto Data contin-ues to develop and build on its loyalty and marketing features for its customer base.

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?Hopefully in 2013 we will see a real eco-nomic recovery begin and more people get back to work. This would go a long way to-ward helping the car count issue, obviously, as more people would take to the roads. If not, we are in for more of the same, which means making the most of what you have customer wise. We will continue to see the traditional lube shop offer more and more services to maximize their ticket potential with some going as far as performing light repair.

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CHEVRON LUBRICANTS925.842.8759www.chevron.com

Dave Schletewitz, Consumer Product brand manager

What is the biggest operational challenge facing fast lube operators right now? Notwithstanding staffing, retention and car counts, one of the growing operational challenges we see is inventory manage-ment, what an operator needs to carry to satisfy all of the OEM-specific vehicle re-quirements, and making sure their employ-ees are educated and trained on using the right products. Legislation, new technology and OEM-specific fluids have benefits, but

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they also add cost and complexity that need to be managed.

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see? Players in the fast lube industry need to rely on driving premium product sales and get-ting more out of secondary profit centers or services — to make up for flat to declining car counts — due to all the factors we well know.

We foresee continued rationalization. The ones that remain, adapt and are the fit-test — they drive operational excellence as a priority in every aspect of their business, delivering a consistent service experience that totally exceeds what an average con-sumer would expect.

As for industry developments, we see the need for operators to educate their consum-ers that they are getting a quality, branded motor oil backed by a major manufacturer — reinforcing trust through transparency — and direct a portion of their marketing spend toward digital and social marketing to keep up with demographic, technology and mobile trends — this is part of that sur-vival of the fittest thing.

Marketing research consistently shows that the consumer decision tree for choice of an oil change outlet is all about customer service, trust and friendly helpful employ-ees. Our view is, control the controllables and you will be successful — drive opera-tional excellence in every aspect of your business; provide superior customer ser-vice; develop a deep relationship in your community; know your customers; get their feedback on every service and fix every poor review, which gets back to op-erational excellence; leverage technology to make you smarter and more efficient; hire and retain a friendly staff; train and cross-train; maintain spotless facilities; exceed the industry average for premium product sales, which is a function of the sales pro-cess; and, by all means, take accountability for marketing your business.

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CITGO LUBRICANTS800.331.4068www.citgo.com

Brian Galloway, Automotive Product manager

What is the biggest operational challenge facing fast lube operators right now?The top issues facing operators today is cus-tomer attraction and retention. With ex-tended drain intervals, higher cost of goods and lack of customer loyalty, fast lube op-erators need to find and implement creative ways to attract and retain customers. The days of throwing the bay doors open and waiting for customers to show up are no longer viable. Having a plan and properly implementing it is key. Excellent customer service and loyalty programs are great ways to encourage repeat business. Reaching out via mail with a coupon and/or phone call to customers to remind them their next ser-vice is due works wonders, as well.

 Operators will also continue to see pres-sures on their margins. They should con-stantly track their operating costs to ensure maximum profitability. 

 How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?Industry demand will continue to be af-fected by the trend toward extended drain intervals. Drivers will increasingly rely on vehicle maintenance reminders to tell them when to change their oil, rather than the three-month, 3,000-mile rule. If U.S. eco-nomic growth remains sluggish with gas prices high, miles driven and overall de-mand will be impacted. We will see an in-creased share of synthetics in the market, but with that will come incremental mar-gin opportunities. The market will be chal-lenging, but savvy operators will find ways to grow and flourish. Finally, the fast lube industry will continue to see consolidation,

and most companies will grow through ac-quisition rather than new ground-up facili-ties.

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EXXONMOBIL OIL CORPORATION800.275.6624www.mobil1lubeexpress.com

Herbert Steurer, Americas Passenger Vehicle Lubricants advisor

What is the biggest operational challenge facing fast lube operators right now?The fast lube industry remains both chal-lenging and exciting. It is challenging be-cause competition has been stiff, the num-ber of oil changes as a whole has essentially stopped growing, the average miles driven per year has declined and consumers are slowly increasing their typical oil drain interval, with the average now well above 5,000 miles. All of those factors have put some downward pressure on the average car count.

 At the same time, it is exciting from the standpoint that the business continues to evolve rapidly. New opportunities start to arise for operators who keep their prod-uct and services offering aligned with the changing needs of their customer portfolio.

 Suppliers play a key role in keeping fast lube operators abreast of the latest indus-try trends and changing consumer driving habits. This is why the ExxonMobil product offering is based on extensive market and consumer research, and provides a full line of products addressing the latest emerging industry trends and automaker specifica-tions. ExxonMobil’s product line also takes into consideration changing consumer driving habits, enabling channel partners to take full advantage of the growth oppor-tunities the lubricants market has to offer.

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?

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If you look at the top 20 selling vehicles in 2009, you will see that 14 of them now re-quire synthetics for their 2011 models and beyond. That is going to have a big impact on the synthetic market, which will lead to even faster growth and the emergence of new synthetic consumers.

  Operators should start making syn-thetic products a key component of their lubricants offer, leveraging all the varieties that address different consumer needs. The high-mileage category in particular has been growing rapidly given that the aver-age car is now more than 10 years old. This provides another important opportunity area for differentiation and profitability po-tential.

 Fast lube personnel training on how to offer those products and address customer questions related to the benefits of synthet-ics and high mileage oils is also critical to capturing that growing piece of the market and to achieve their profit potential.

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INTEGRATED SERVICES, INC.800.922.3099www.ints.com

Steve Barram, CEO

What is the biggest operational challenge facing fast lube operators right now?Simply put, expansion. Many operators face significant questions relating to how they can and/or should expand services without sacrificing their core speed of ser-vice and convenience hallmarks. For many this will entail an examination of physical site limitations or expansion opportunities relating to considerations surrounding ad-ditional service offerings.

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?

We believe 2013 will continue to provide downward pressures on the fast lube/auto-motive maintenance industry as the econo-my struggles to find a sustainable rebound. The core strength of the fast lube industry — the fast and convenient servicing of its customers — will continue to see increas-ing assault from both the automotive dealer segment and the more traditional automo-tive aftermarket segment. Both of these segments’ ability to recognize success will be measured in their ability to increase cus-tomer retention for light maintenance ser-vices. The most natural place from which to gain those customers is the fast lube segment. Convergence may become a key concept in 2013, and the fast lube segment must remain diligent in adapting to the needs of its customers whom it has served so very well all these years.

Given that environment, we see the fast lube segment evaluating and embracing new product ideas that will permit the seg-ment to touch the customer in ways and with services that extend beyond the tradi-tional core offerings. It is in this area we see the most opportunity for development.

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MIGHTY AUTO PARTS800.829.3900www.mightyautoparts.com

Ken Voelker, president, CEO

What is the biggest operational challenge facing fast lube operators right now?Taking steps to address the reality of ex-tended oil change intervals is clearly the top challenge for fast lube operators. The combination of improved automotive tech-nology, OE recommendations of longer intervals between oil changes and crimped consumer spending have created this chal-lenge. An additional challenge is enhanced competition, especially from franchised new car dealerships.

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?2013 will continue to be challenging, but improved over 2012. How fast lube opera-tors adapt their current business model and then implement it will determine their suc-cess. The key to success is improved cus-tomer retention, by continuing to provide exceptional value and offering additional services to the consumer. Thus, we see a lot of fast lube operators experimenting with additional preventive maintenance services, such as brake pad and rotor re-placement, tire repair and TPMS service. Executing a consistent, professional vehicle inspection to identify needed services and communicating the results effectively to consumers will be critical success factors for fast lube operators in 2013.

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MOVING TARGETS800.926.2451 ext.113www.movingtargets.com

Terry Siff, vice president of Sales

What is the biggest operational challenge facing fast lube operators right now?Winning the neighborhood battle for cus-tomers — it’s tough to keep attracting peo-ple with the increasing number of locations competing for fast lube business. Car deal-ers, mass merchandisers and chains com-peting for your business not only do what you do, but they also offer other services making it easier and more convenient for customers.

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?Things will only get more challenging for the fast lube industry — people are driving

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less, cars are getting more reliable and man-ufacturer recommendations for when to schedule an oil change are extended, which means less need for people to get a LOF.

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PM ATTENDANT866.576.8957www.pmattendant.com

Ash Bullard, vice president Sales and Marketing

What is the biggest operational challenge facing fast lube operators right now? The biggest operational challenge fast lube operators are facing right now is how to operate on a decreased car count with an increased cost of goods. There are no more easy cost reductions. 

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?The fast lube/automotive maintenance in-dustry will mirror the price of oil. The in-dustry will continue to see consolidation between fast lube, repair, tire and carwash entities. There will also be an increase in resource opportunities from oil companies and franchise companies.

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ROYAL PURPLE888.382.6300www.royalpurple.com

Thomas Braun, National DIFM sales manager

What is the biggest operational challenge facing fast lube operators right now? The biggest operational challenge facing fast lube operators is improving investment

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returns for the long term. There are many easy, short-term fixes that will not improve long-term bottom line results. The opera-tors can under-staff, leading to consumers waiting an inappropriately long time for services, or they can under-staff by hir-ing less than qualified employees. In the short-term, less employees or unqualified employees are cheaper. In the long-term, neither of these solutions build a long-term consumer relationship.

How about purchasing the cheapest bulk motor oil available? It probably meets API specifications, or does it? How many recent incidents have we seen where that is not the case? And who needs a national brand? Customers patronize a particular quick lube because of the service. This is very true, however, it is a mistake to undervalue the importance of a recognizable brand. Consumers draw comfort from brands they know, particularly in this migratory society.

The list of short-term fixes goes on and on. The solution is simply in concept — whenever the operator is making a strategic decision for their business ask the question, “Is this good for the long-term growth of my business? Will this enhance my rela-tionship with my customers?” If the answer is yes, then it is probably the right course to take even if it isn’t the cheapest course to follow.

 How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?The industry will continue to consolidate with the larger operators, continuing to acquire the smaller operators. The trends indicate quick lube operators will continue to expand the services they offer, including services that were never even considered years ago, such as brake services.

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SAGE MICROSYSTEMS, INC.800.724.7400www.sagesystem.com

Bob Sampson, president

What is the biggest operational challenge facing fast lube operators right now?With the increased number of department stores, muffler shops, tire stores, dealer-ships and repair shops offering discount oil change work, fast lube operators must find methods to compete, just to retain existing customers and develop a caring reputation to attract new customers. Service needs to go beyond the basic necessities of having friendly employees, and a clean shop and waiting area. Let’s face it, a visit to the quick lube shop is usually not a visit that a cus-tomer looks forward to, but fast lube opera-tors can make a more favorable impression by engaging the customer into the services offered. iPad or tablet presentations can be very informative and impressive, and it is always important to present the manufac-turer recommendations. When presented in colorful displays including past or pend-ing due dates and mileage intervals, cus-tomers quickly understand services that do and don’t need attention. Discussing the vehicle’s service history also builds custom-er trust along with your integrity. As they visually see this on the iPad or tablet, it can be explained that your system has calcu-lated service requirements based on their specific vehicle, and it has identified all pre-viously performed services at the facility before calculating its findings. If presented in a professional approach, taking the time to both show and explain what the manu-facturer recommends, most likely exceeds the customers’ expectations. And, chances are, they probably have not experienced this level of personalized service at other places. A well-informed, satisfied customer is much more apt to purchase additional services, as well as return for future visits. 

 How do you predict the fast lube/auto-motive maintenance industry will fare

in 2013, and what developments do you predict the industry will see?2013 should be approached with caution. We all are fully aware that we have condi-tions that are working for and against us. On the negative side, we still have a lot of competition. We also have vehicle manu-facturers that continue to promote longer drain intervals, and we still have relatively high gas prices that hurt driving habits. However, on the positive side, the age of cars continues to rise, along with the num-ber of vehicles on the road. 

 With the election year, it could be argued that we should see an improved economy, lower gas prices and lower unemployment. Although, that may just be wishful think-ing. However, it seems like a safe bet that cars will stay on the road even longer, and drivers will need to extend the life of these vehicles. As customers continue to hold onto these older cars longer, additional ser-vices are typically required. Providing the tools to properly inform and engage your customer will be more important than ever.

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SEA FOAM SALES COMPANY800.536.4812www.seafoamsales.com

Jim Davis, Technical Service director, ASE-certified automotive technician

What is the biggest operational chal-lenge facing operators right now?In the automotive aftermarket, distribu-tors are becoming quite centralized, and it’s brought a more corporate perspective to the industry. The focus on sales is more discount and retail driven. As this becomes the industry standard, sales forces that ser-vice customers personally have gone by the wayside, because there’s no longer sufficient profit margin to support them. Discounts may move the sales needle, but the real

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winner will be the operators who continue to provide the best service to their custom-ers.

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?The industry will hopefully see an increase of stable growth in 2013. The past few years have been difficult on operators, although a select few have fared tough economic cli-mate quite well. This year has been steadier across the board, so I believe 2013 will be a year of recovery for the industry.

In some states, bio-fuels (i.e. ethanol and biodiesel) will become more prevalent in 2013, particularly ethanol-blended fuels. This will have a major impact on the after-market simply because increasing bio-fuel levels will affect the engine’s maintenance, performance and fuel additive require-ments.

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SERVICE CHAMP800.221.0216www.servicechamp.com

Fred Berman, president

What is the biggest operational challenge facing fast lube operators right now?I think the uncertainty everyone feels is apparent in all aspects of the business. The operational challenges we see today often revolve around the ongoing “bay time vs. services offered,” and the possible effect on car counts. Offering all of the ancillary ser-vices available in the expected service time we have established can be at odds. The op-erator must weigh the customer needs with the competing profitability of these ser-vices, and that leads to some tough choices that the operator must make.

How do you predict the fast lube/auto-motive maintenance industry will fare

in 2013, and what developments do you predict the industry will see?Most of our customers continue to offer ad-ditional services to maintain and hopefully grow revenue, and we see this continuing. Premium oil filters are being added to com-plement the premium oils, for that signifi-cant group of consumers who want the best for their cars. I think the outside influences, particularly unemployment, fuel prices and the corresponding “miles driven” are going to be the deciding factor in how this gets answered. We have seen recent retail sales strengthening, and we are all encouraged by it. We feel 2013 will be a healthy year for the quick lube industry!

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SMART BLEND SYNTHETICS BY LIFE AUTOMOTIVE PRODUCTS888.422.9099www.smartblend.com

Steven Farr, vice president

What is the biggest operational challenge facing fast lube operators right now? One of the most challenging operational issues facing lube operators in 2013 will be increasing car counts, due to OEM ex-tended service intervals and recommended maintenance schedules. Effective inventory management, recruiting/maintaining qual-ified personnel and strong positive cash flow will continue to prove challenging.

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see?We expect the fast lube industry for 2013 to closely mirror 2012, however, we remain optimistic. Higher than normal fuel prices may continue to have a somewhat nega-tive impact on expendable income, thus affecting consumer confidence. There will continue to be mergers and acquisitions of mid-level to large lube chains. The diversi-

fication of service offerings by lube opera-tors, such as brake services, tire rotations and  other preventative maintenance  ser-vices are expected to continue.

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SOLID START/TRUE BRAND863.937.9297www.solidstart.biz

Amber Kossak, chief operating officer

What is the biggest operational challenge facing fast lube operators right now? We believe operators are struggling with oil change intervals. Customers who used to visit three to four times a year are now only being seen one or two times a year. So how does the operator sell more with see-ing less people and still provide the “trust” atmosphere?

How do you predict the fast lube/auto-motive maintenance industry will fare in 2013, and what developments do you predict the industry will see? Operators still have the potential to grow because people are keeping their vehicles longer. They will need to increase the qual-ity of customer service and number of ser-vices they offer in order to keep up with the industry. For example, service centers who never thought of performing a brake service will now perform a brake service to keep their customer coming back to them instead of going to the competition. In-crease the level of quality, and increase the number of services. S