The Competitive Advantages of SpeeDee’s Business Model
One of the major advantages of joining a franchise system is that you can benefit from economies of scale and negotiating power. Our brands represent hundreds of oil change businesses, and among the competitive advantages for owners are flexibility, high quality, and better margins.
SpeeDee Oil Change & Auto Service® is a large brand in its own right, but it benefits by being part of FullSpeed Automotive® — one of the largest and fastest-growing quick lube organizations not owned by an oil company.
FullSpeed also includes Grease Monkey® and Kwik Kar, each with hundreds of locations. Here are some of the ways that scale benefits franchisees:
FullSpeed Automotive is one of the largest oil change businesses not owned by an oil company. This gives us the freedom to negotiate with different national suppliers. Because we’re not owned by an oil company, we’re not forced to stock products from only a single brand.
Further, we don’t have to “push” products. We tell the consumer what’s needed for their vehicle according to manufacturer recommendations, and we don’t try to sell a particular brand of oil.
We take a long-term view of revenue and profitability. We’re invested in keeping the customer service level high, because trust is what keeps customers coming back year after year, mile after mile.
We provide robust training for our franchisees. Just as importantly, we provide robust training resources for franchisees’ employees — allowing them to master each aspect of the business, improve their skills, and earn additional certifications.
During each oil change, we inspect the vehicle we’re working on: checking filters, fluid levels, tires, and more. If we find an issue, we tell the customer about it and let them decide what to do. We give advice, but our approach is not sales-driven – it’s about quality and customer loyalty.
Better margins thanks to buying power
Because of the number of units we own, we can use economies of scale to boost our purchasing power.
Again, we have more freedom than companies that are owned by oil chains. Our vendors know we can go elsewhere for our needs, giving us the ability to negotiate discounts that help us generate strong margins while remaining price competitive.
In addition to these advantages, we have experienced leadership and development teams. Many of them have backgrounds in the automotive industry, and they bring their knowledge not only to the negotiating table but also to operations and business development.
Our teams are ready and willing to assist franchisees if help is needed, and with their years of experience, you can be sure it’s an issue they’ve handled before.
SpeeDee is focused on helping franchisees open new businesses and on acquiring auto service centers from independent operators who are ready to sell. If you’d like to learn more, download our free franchise information report here.