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Diversified Royalty Corp T.DIV

Alternate Symbol(s):  BEVFF | T.DIV.DB.A

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in acquiring royalties from multi-location businesses and franchisors in North America. It owns Mr. Lube + Tires, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the quick lube service business in Canada, with locations across Canada. AIR MILES is a coalition loyalty program. Sutton is a residential real estate brokerage franchisor business in Canada. Mr. Mikes operates casual steakhouse restaurants in western Canadian communities. Nurse Next Door is a home care provider. Oxford Learning Centres is a franchisee supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning, and office cleaning services in the United States. BarBurrito is a quick-service Mexican restaurant food chain.


TSX:DIV - Post by User

Comment by Shirtlessnomoreon May 30, 2022 2:18pm
111 Views
Post# 34717552

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Overlooked aspect of the Mr.Lube business

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Overlooked aspect of the Mr.Lube businessGood post and I agree, I did mention awhile back that oil changes themselves are almost a loss leader to sell you other higher margin parts and services, it's no different then walking into costco for an item a friend mentioned was on sale for 20 bucks and checking out 200 bucks worth of stuff you didnt even go there for, another point I made before was the "tire" part, they now are putting more emphasis on tires which can be anything from rotating, changing from snows to summer, repairing and replacement, this is another perfect regular maintenance to get you in the bay. Cheers. .
MelodicHysteria wrote: Just thought I would circle back to a concern made here. Oil changes are roughly 70-130 dollars on average and a good chunk of that money goes to the oil and staff income to do said oil change. This is done 2-4 times a year.

To do a battery inspection on an electric vehicle, this is required in order to keep any warranties valid on the battery, is twice a year. Saying that, this has a cost of 150-300 dollars (it ranged from the dealerships I asked with Tesla being 550 because they would have to send someone to me without a tesla service station nearby) to do and the best part is it doesn't actually have any resource (such as oil) needing to be bought. It is almost pure profit for the dealership minus the staff pay and initial equipment investment.

You physically inspect the battery, and plug in a diagnostic tool for the battery. Since the batteres do last a considerable amount of time, the liklihood of needing something done that isn't warranty work is really low and if it does need work, it more then likely cannot be done quickly at a mr.lube (off to the dealer it goes).  Either way, mr. lube would pocket almost all of that cost of a battery inspection as part of the maintance requirement for vehicles. With battery maintance and batteries often having severe issues, if you had a swelling battery, it would be dangerous to drive to a dealership and could even be an extra service offered (tow to a service centre).

So yes, going in 2-4 times is being replaced with twice a year, but the twice a year is far more lucrative then the oil change will be. Now as adaption becomes more prevalent, that price may go down to what an oil change cost was but you still profit far more from that then the oil change.




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