By Loy M. Palapos The Legacy of VARESCON
Bohol has long targeted eco-tourism as the nexus of economic development alongside agriculture. Ecologically rich and comparatively untarnished by the onslaught of modernization, her natural wonders have become the primary reasons why it is the number one tourist destination of the nation, a pronouncement the President herself made in one of her occasional visits to the locality. Add the well-admired hospitality of the inhabitants, and the bored and weary tourist finds a perfect setting to unwind from the rigmarole of urban existence.
Consequently, the present administration had allotted large amounts for infrastructure projects, most worth noting of which was the concreting of roads all around the province. This has tremendously bolstered the accessibility to tourist spots and which, in turn, inspired investors to put up facilities to cater to the tastes of the varied international guests.
But, of what use are good roads without the transport vehicles… the cars? There were sporadic vans for hire which, when not properly monitored and regulated, became subjects of complaints from unsuspecting foreigners who became victims of sculptors disguised as van operators and drivers.
Until VARESCON came. A franchised chain of taxicabs owned and operated by Linfred Butalid Alvarez (LBA). Born in Cebu of Boholano parents, he gained consciousness and was nurtured in Bohol. A graduate of the University of San Carlos, where he finished Bachelor of Arts, major in Economics, he had the unique experience of working in different establishments doing varied jobs in several places, before he decided on entrepreneurship.
Last Thursday, he attended the special Board meeting of the Bohol Chamber of Commerce and Industry. This interview took place after the adjournment of the said meeting.
LMP: What is VARESCON?
LBA: It’s taken from Alvarez, Estrada and Conan.
LMP: What was the reason why you kept on transferring from one job to another?
LBA: Aduna’y gamay nga problema sa management. Layo pa gyod sa pamilya, maong naglisod gamay.
LMP: After Bucarez, you put up Varescon. Why did you go to that business?
LBA: Sa dihang naa pa ko sa Bucarez, mag-sige ko ug travel especially sa Cebu. Didto, na-notice nako nga ang mga tawo mag-sige’g sakay ug taxi. Unya, wala pa man ta’y taxi sa Bohol that time, maong nakahuna-huna ko nga that is one area I could go into.
LMP: How did you start with it?
LBA: Nagkinahanglan gyod kadto siya ug dako nga capital, but that time, gamay pa ang savings nako. At first manghuwam unta ko sa mga bangko but timing man nga miabot ang 1997 Asian financial crisis. Nakasulod na unta ko but nasirado man ang mga facilities sa bangko so I was forced to go to a private financier. That was my mistake.
LMP: When you started operating, how many units did you have?
LBA: 20 units pag-start, then eventually, naka-acquire ko ug another 10 units.
LMP: During that time, did it click with the Boholano?
LBA: Mi-click gyod siya, Sir. It was a need nga wala pa ma-address. Wala man pod kadto’y V-hire, so wala pa’y competition.
LMP: From where did you get the idea to put up a taxi service?
LBA: It was an original idea gyod, Sir. When I saw the franchise from LTFRB nga from Tagbilaran to anywhere in Bohol, gi-grab na nako. Morag missionary route kon Airlines pa.
LMP: You have 30 units all in all. Was there not much of a problem in terms of operation, compensation and maintenance were concerned?
LBA: Maayo man ang pagsugod. Didto ra gyod ko naglisod sa private financier. Gikuha ang 27 units nako, tulo nalang ang nahibilin. That was the lowest part gyod.
LMP: How did you recover?
LBA: At that time, diha nay 3rd party nga eager mo-operate ug units. Tagorha sila ka units, but ako ang nag-manage. Some used our own franchise, others got their own. In order for them to use our tradename, they should submit to our means of doing business.
LMP: Pila man ang cut as far as your share is concerned?
LBA: No entry or franchise free. Management fee lang.
LMP: Pila man ka percent?
LBA: Naa ta’y gitawag nga graduated. Let’s say if mo-garahe sila for 24 hours, sa first P1000 gross nila, they will pay 10 percent. Sa succeeding P500, they will pay 9 percent, beyond that, 8 percent na. Kana kon mo-garahe sila ug 24 hours.
LMP: Is that good for the business?
LBA: Sa pagka-karon, igo-igo lang gyod.
LMP: There’s always a thought that Varescon as a transportation company, has helped tremendously in the tourism industry of Bohol. How do you assess that?
LBA: We would like to think nga tinuod na. Kay mao man gyod na atong primero nga misyon, nga maka-serbisyo gyod 24 oras.
LMP: Pila ka mga tawo imong gi-suweldohan?
LBA: Duna ta’y upat ka radio operators, 8-hour shift kada usa. Aduna ta’y cashier, 2 mechanics ug sa carwash.
LMP: How were you affected by the rise of the prices of oil products?
LBA: The most severely gyod, Sir.
LMP: How did you counter the problem?
LBA: Wala gyod mi nahimo kay it’s beyond our control man. I noticed nga during the successive increase of oil price, ang uban nga transportation, naka-increase sila like sa fast craft, barko, jeepney ug buses. Ang taxi ra gyod ang wala.
LMP: Did you not think of another option like LPG?
LBA: Tulo na ka parties ang mi-express ug interests. Welcome kaayo na namo but wala madayon. Siguro nagtan-aw sila sa volume of units nga dili pa daghan. We are willing to convert but wa pa’y diesel to LPG. Lahi man gud ni kay you have to provide the conversion kit and the cost of the kit is dako.
LMP: How many do you need aron ma-maximize siya?
LBA: Gusto ko mopuno pa ug another units, but ang profitability dili pa maayo karon. If the profitability goes up, there’s a possibility nga daghan ang mosulod. In fact, aduna’y awto karon nga angay himoong taxi kay gamay ra ang fuel consumption, ang Hundai Accent sa Korea. Ang problema sa awto, magkadaan sya, ang iyang fuel efficiency, mag-kaubos. Ang maintenance cost sad, magka anam kadako. Economically speaking, it’s wise to change to a new car.
LMP: How do you see the future of this business in Bohol?
LBA: Dako gyod ang future ani nga business especially for those nga naay dakong capital. This is good business if you can achieve the efficiency nga gikinahanglan. Mas maayo kon moabot na dinhi sa Bohol ang high breed nga mga awto kanang duha ka power source: internal combustion engine ug electric. Ang government unta nato should wave the taxes aning sakyanana para wala na’y tax inig abot sa Pilipinas. When you import a car man gud nga dili sold locally, doble ang tax. Usa pa nga concern nako and this has been a personal crusade, mobiya na unta ta sa fossil fuel. Nganong wala pa man ta maghimo ug hydrogen fuel nga naa naman ang technology dinhi. In fact, Iceland has been doing that. Dili na sila mogamit ug petroleum. To produce hydrogen, i-subject na siya nimo sa electrolysis kay mo-separate ang hydrogen ug oxygen molecules as well as the atoms. To do that, you need a lot of energy. Sa Iceland, since they have geothermal power, mao na ang ilang gigamit to produce hydrogen and to power the electrolysis. Nanghambog pa ta nga the Philippines has the biggest geothermal plant. Kana unta’y gamiton nato. Mao unta na’y gi-focus sa gobyerno. User and environment friendly pa ang emission kay water vapor man. Ang hybrid vehicle cars pwede na makadagan ug 40-60 kms kon kana ang gamiton. Ang principle is to start the car in motion, you use the internal combustion engine kay while nag andar, nagcharge man siya sa fuel.
LMP: Many have noticed that you are an optimist. Should an entrepreneur like you be always optimistic?
LBA: A big necessity. Gawas sa kakugi ug aggressiveness, an entrepreneur should be persevering. These are traits needed for success. Sa akong bahin, if I am not an optimist, dugay na unta akong mi-surrender. At least I have done something for the economic progress of Bohol, especially on the tourism side. Bisan sa atong kagamay, duna ta’y gikatabang.
A sister-in-law, who is a nurse based in Canada, decided to have her two-week annual vacation in Bohol, and stayed at our residence in Dauis. Unfortunately, a day after her arrival, my driver went to his hometown. Thus, she thought she was stranded, with her time fast running out. I told her not to worry, and using my cellphone, dialed (038) 411-2548. Fifteen minutes later, a white taxi was honking in front of my house. She was amazed. A car right at the doorstep. Even the return trip was as comfortable and speedy. It was a pattern repeated daily and which she enjoyed no end.
This is the kind of service Linfred gives to his commuters anywhere in the province. Even those who opt to taxi to Chocolate Hills and other tourist destinations have expressed their admiration to his efficient service. Besides, with the kind of control VARESCON has for all its affiliated units, the old practice of over-charging passengers has been stopped. Thanks to the scheme practiced by Linfred A and his staff.
Linfred A had suffered some harsh set-backs in his business but, forever the optimist, he believes things will always turn out better if one learns from his mistakes, and he perseveres. He bewails the high prices of petroleum products, which gravely affects the transport industry. Yet, he looks forward to the day when this recurring problem would be solved.
The young entrepreneur finds consolation with the fact that, in his own little way he has helped augment the success of the Bohol eco-tourism industry. VARESCON may sound foreign, but its closeness to the hearts of Boholanos is now a legacy.
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Topic: Interview with Varescon Owner in Bohol (Read 2455 times)