Bill Bhangal is in a jam these days. The owner of 10 Jiffy Lube franchises in Southwestern Ontario says his revenue, just like the economy, has tanked. “Before the downturn, customers would arrive every 4,000 to 5,000 kilometres – now it’s stretched to 7,000 kilometres, with customers availing of lesser services than before,” he says.
The drop in business, which he estimates at 7 per cent to 10 per cent, has cut his average revenue per customer to $69, a number he’d like to see increase to $80. But one of the quickest ways to do so – raising prices – is not an option in these trying times, he says. February sales dropped 7 per cent over last year, and March has shown a modest uptick, says Mr. Bhangal, 42, who has worked 15 years in the auto industry.
He started small, with garages and then service stations, and over the course of six years has acquired exclusive regional franchisee rights for 10 Jiffy Lubes in Brampton, Mississauga, Oakville and Burlington that together employ 110 people. Mr. Bhangal says he shelled out about $750,000 per location, including franchise costs of about $188,000 to $325,000 per site, according to the Jiffy Lube website. Read full story.