Monday, September 13, 2010

[EDIT: I forgot to thank josh for this link.]

Sorry about any weird formatting, grammar, or spelling issues, as prevously noted, I am typing on my phone.

Hmmm... if we are not to change our oil every 3000 miles, who would benifit and who would suffer?

I can't imagine that it would be good for Ashland Oil, which derives a good bit of it's revenue from Valvoline. Texaco, Quacker State, and others would probably have similar problems. What about Precision Auto and Midas?

Are there any public companies out there that recycle auto wastes? What about the companies that make other fluids? It would seem reasonable to assume that if a person has their oil changed less, that they would have other items checked up on a lot less as well, which could lead to other problems... for example, if a person doesn't know their power steering fluid is low, since they did not get an oil change after 3000 miles, that they may need to get a power steering fluid pump a lot sooner (since instead if just topping it off, as normal, they would run it low.) Maybe companies like Borg Warner or other parts manufactures will sell more OEM parts. Maybe Toyota will sell more cars since bigger problems will be untracable, and people would rather buy a new car than a transmission.

What about Auto Zone? I guess they will sell fewer filters and less oil, which are provably low margin; but more high end parts to "fix it yourselfers" and small garages? Walmart sells auto stuff, and they will prolly sell less. Plus, it is a reason less that people have to so much as even go in the store, which will eliminate the chance to sell them other items a good 3 or 4 times a year!

I guess that this is a really good test of the moats that have been constructed by auto service companies in the past few years.

Invert, invert, invert...

Any other ideas?

Disclosure: none

1 comment:

Robert Pio Molloy said...

I see Signature Eyewear released the latest quarterly confirming that the bebe eyes and Hummmer contracts accounting for 45% of revenue had expired. Good call on selling.