🚗 The oil change business is changing

GM. This is Work "After" Work, the newsletter that keeps you ahead of the pack when it comes to making money.

Happy hump day, let's jump in:

• 🚗 Mobile oil changing business

• 😂 Meme of the day

OIL CHANGES COMING TO YOU

Uber, DoorDash, and Amazon all have one thing in common. They provide convenience. With one click of a button you can get a ride to the airport, your dinner, or lightsaber chopsticks (yes, they’re a thing!)

These are all multibillion-dollar businesses that took what already existed and made it easier.

What’s a niche where you can do the same? The auto markets, specifically, auto maintenance!

Think oil changes and battery swaps. Instead of someone having to go to a shop to get their oil changed, you come to their front door and do it for them. A service that car owners will pay a premium for because it saves so much time.

What’s nice about this business?

Two things:#1 You don’t need to do the oil changes yourself. If you’re able to get customers, hire mechanics looking for work to go to the jobs.

#2 Cars always need oil changes. So, chances are you’ll have returning customers if you provide a quality service.

How are you going to beat your competition?With speed. There are a lot of oil changing businesses, many with lengthy wait times.

Even Wrench, a mobile car maintenance site that makes $44 million a year has me on a 3 day wait list.

Source a mechanic and be there the next day. Don’t put them on a waitlist and you’ll grow faster than a Chia pet on a summer day.

HOW CAN YOU DO THIS? FOLLOW THESE 3 STEPS:

1. Find a mechanic

This one is a no brainer. You're going to need a mechanic on hand to send to jobs.

Go on sites like TaskRabbit and Thumbtack. These are places mechanics are looking for work.

In the beginning, you'll most likely only be able to pay mechanics hourly and send them to jobs when they're available. This means customers may have to wait a day or two, not ideal but when you don't have money it's the best you can do.

But right when you make enough every month to hire on a full-time mechanic, do it. Don't take any for yourself. The money will come.

Focus on growing your business and providing the fastest service to your customers. A full-time mechanic will solve that.

It's also not a bad idea to learn yourself in case you need to fill in last minute while you're starting out. As they say, "get your hands dirty".

2. Get customers

This is a great idea, but it's a bad one without customers.

How are you going to get customers?You'll have to hustle and get creative. Almost everything starts out as a hustle. This was Amazon just 25 years ago.

Here are 5 ways you can market:

1. Social Media - Facebooks ads are not dead, no matter how bad they are to set up

2. Create beautiful door-to-door flyers and brochures

3. Offer discounts, promotions, and special plans to attract customers

4. Reach out to local mechanics and offer a finders fee

5. Offer a rewards program where customers can earn a free oil change after so much repeat business

3. Figure out your margins

The last step is running the numbers. RevenueCheck what your competitors are charging to give you an idea. YourMechanic charges $105 to do an oil change on a new Honda Accord. Your price point can be similar and will depend on your location.

ExpensesMechanics are charging anywhere from $30 to $75 an hour. Subtract how much you're charging vs how much you're paying and this will be your spread per job, assuming each one takes an hour or less, which it should.

ProfitWhen it comes to how much you're actually taking home, let's say it's $30 for every job you complete. Quick math tells us that 5 oil changes a week equals $150 or $600 every month.

Now think bigger. This is a business you can scale as you gain more customers.

Imagine down the line, maybe in 6 months you're doing 21 jobs a week (or 3 per day). That's (21 jobs * $30) = $630 per week and over $2,500 every month.

Now this little side hustle isn't so little no more!

MEME OF THE DAY

RIP 😅

That's all I got for ya today folks!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.