Old-fashioned service - Oil Can Henry's; basic car maintenance - company profile

Old-Fashioned Service Marshall Stevens was in commercial real estate in 1978 when a client asked him to scout locations for a "fast-lube" operation--while-you-wait basic car maintenance--in Portland, Ore. The client changed his mind about the business before a site could be finalized. But Stevens, who had always wanted to run his own business, saw the fast-lube idea as one worth pursuing. So, later that year, Stevens and two partners formed the American Lubrication Company and opened the first Oil Can Henry's in Portland.

"We don't sell oil," Stevens says. "we sell service." For about $20, Oil Can Henry's will change the oil, lubricate grease fittings, check key fluid levels and even wash the windshield of a standard car--in just 10 minutes. Other basic maintenance services such as radiator flushes and transmission service take a little longer, but Oil Can Henry's still keeps a strict time schedule. Customers can drive up without an appointment, and, while they sit inside their vehicles, they can watch on closed circuit television screens as the technicians work.

"We want to tell the customer what we're doing is right, and we have nothing to hide," Stevens says. The closed circuit TV is "slick. People like it."

Oil Can Henry's tries to convey an image of old-fashioned quality service that Stevens associates with the days of Henry Ford; hence, the name and the barn red, turn-of-the-century decor of the service stations.

"It's a great concept," says Stevens, pointing to the decline in full-service gas stations and the time and expense involved in having a vehicle serviced at an auto dealership. In fact, it is such a good idea that many major oil companies are promoting their own fast-lube programs.

Stevens fails to let competition intimidate him, however.

Oil Can Henry's consistently spends close to 10 percent of gross sales on advertising. This steady investment has paid off, giving the company high visibility and a growing share of the market in Oregon.

Stevens says the firm has been profitable since the last quarter of 1981. In 1982, he gave up his real estate career to devote his full attention to his fastlube business.

Then, in 1984, Stevens bought out his original partners.

A graduate in business administration from the University of California at Los Angeles, Stevens says his lack of automotive training was irrelevant to his decision to enter the automobile service industry.

"Business is so sophisticated today, you need business training," he says. "You can hire people and teach them to be good technicians."

To maintain the company's reputation for speed and service, centers are designed for maximum efficiency, and employees are trained in each maintenance function.

Training in basic auto mechanics is backed up with manuals detailing specifications for models going back to the late 1950s. Stevens says the centers have manuals for 98 percent of the cars on the road.

It takes more than good service and smart advertising to stay in business, Stevens says. "Business success today is measured by narrow margins. If you don't watch every nickel, it will get away from you. You just don't have room for error."

The firm keeps close tabs on its operations through the use of overnight courier services. The Portland office continually analyzes the daily reports it receives on each center's sales, productivity and inventory. Stevens plans to have each center linked to the main office by computer soon.

Oil Can Henry's uses the just-in-time method to control inventory, Stevens says.

"We don't have a warehouse," he says. "We don't have a fleet of trucks. Our suppliers deliver to our centers just in time."

"Our future is at stake every time we work on someone's car," Stevens says. "That person will tell the world how good or how bad we are. We want every customer to say, 'I'll be back.'"

Stevens is busy expanding his business. In early 1985, the firm operated eight Oil Can Henry's, all in Oregon. Today, 20 centers are open and seven more are under construction. The business has branched out into other states as well--Florida, Washington, Arizona and California. "For us not to get run over," Stevens says, "we have to grow."

Oil Can Henry's locates its new centers in areas pinpointed as under-serviced, heavily reliant on automobile transportation and having a high number of cars per capita. Some of these centers will be franchises (one is already open), but Stevens says he plans to continue operating and opening company-owned centers. "You shouldn't be in the business of telling others how to do it if you can't do it yourself," Stevens says. "We're going into business with the franchisees--not to compete with but to support them."

With his expansion program actively under way, Stevens is confident Oil Can Henry's will be able to attract its share of customers in the larger market. In 1986, the company earned about $5 million in sales, and Stevens expects to double that figure this year. But he certainly is not complacement. "I don't think you ever have it made," he says. "You can never just coast."

COPYRIGHT 1987 U.S. Chamber of Commerce
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