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AOCA Releases Cost of Doing Business Report

10 August 1999

AOCA Releases Cost of Doing Business Report

    DALLAS--Aug. 9, 1999--The Automotive Oil Change Association recently published its '1999 Cost of Doing Business Report.'
    The report is the result of an extensive survey of fast lube operations throughout the United States and Canada. AOCA's Report is the most complete, accurate and up-to-date comparative financial performance information about the automotive oil change industry.
    The 1999 Report is the third in the series that began in 1995. This year, the information provided includes a "Trend Analysis" section showing changes in the past few years as this industry matures. For example, the fast lube firms in the study reported that 1998 sales increase 7.4% over the previous year versus an increase of just 3.1% reported back in 1995. However, bottom line profits have fallen off slightly, showing a 5.3% net profit before tax in 1998 compared to 6.2% in 1995. On the whole, the profitability of the industry remains quite high.
    The 95-page report has comparative data broken down by geographic region, by size of firm based on sales and a section devoted to the results of the high-profit firms. Fast lubes in the Northeast and East Central regions of the US showed the highest rates of sales growth, 11.4% and 14.7% respectively. In the area of profitability performance, the Report shows that the average return on assets for the industry was 9.9%. However, those in the "high profit" category showed a return of 28.5%.
    The goal of the AOCA 'Cost of Doing Business Report' is to provide information that will allow oil change operators to better manage their businesses. It is an easy-to-understand, managerially actionable too with which to evaluate the business and pinpoint strengths, weaknesses and improvement opportunities. It is also designed for those looking to invest in this growing segment of the automotive maintenance industry.
    Copies of the complete report are available from AOCA by calling 800/331-0329. The cost is $175. Members of the Association are eligible for a discount.