Jiffy Lube Case Study Background

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History of Jiffy Lube The first Jiffy Lube to launch was in Ogden Utah in 1971 by Edwin H. Washburn. Washburn is credited with the beginning franchises of Jiffy Lube in Utah. In 1979 James Hindman bought seven franchises and created what is now known as Jiffy Lube Int. During this time Jiffy Lube was relocated to Baltimore Maryland. It is in Maryland that the First Jiffy Lube and from that moment on was known as James Hindman as its founder. (Wikipedia History) James Hindman had grand plans for Jiffy Lube International. He partnered with Penzoil, becoming the largest buyer for Penzoil at the time. This allowed them to obtain oil at a bargain with regards to economies of scale. However, his grand plans did not stop there. He once said, “We are interested in talking to anyone who’s interested in us”. In 1986 Jiffy Lube activated itself into new international markets such as France, Great Britain, and Canada. With big plans in mind, in 1987 Hindman took the company public and opened 1020 Locations by 1989. Since then there are now more than 2,000 Jiffy Lubes across the entire nation with 22 million clients each year. Jiffy Lube is now a subsidiary of Shell Oil company and is 100% franchise owned. Jiffy Lubes success in contributed to the creation of an unparalleled customer service experience as well as becoming the first exceedingly fast drive-thru oil change service. They also pioneered the small sticker placed on a windshield that lets the customer know when their next oil change is due. Jiffy Lube Intl. “…Has helped redefine the vehicle preventive maintenance experience for drivers by upholding the values the company was founded upon: convenience, speed and quality service,” says Karl Keller, business owner of a Ji... ... middle of paper ... ...cenario as well, because small unforeseen problems missed early on can lead to expensive repairs down the road. Jiffy Lube is not a cheap venture. Initial investment according to Entrepreneur.com can cost anywhere between $196,000 to $376,000 depending on the location as well as $7,500 on franchise fees and 3% royalties on the gross profit. All this translates to a more expensive experience at Jiffy Lube than smaller locations. During hard economic times people turn to the smaller bargain maintenance companies. These smaller cheaper location don’t have the overhead costs as Jiffy Lube does and can provide services at a cost much lower than Jiffy Lube can afford to provide their customers with. Recommendations A better customer experience. Coffee donuts wifi Woman and their children- small play area or educational books and toys Do it yourself service auto shop.

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