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January 11, 2013
Here is what you will find in this edition:
CLASSIFIEDS!
NEWS AROUND THE STATE
TRAINING CLASS SCHEDULE
MEET THE FOLKS AT LIBERTY GAS
MEMBER BENEFIT PARTNER MESSAGE
ENVIRONMENTAL INNOVATIONS FOR SERVICE STATIONS
JOIN NJGCA ON FACEBOOK -- CLICK HERE EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
MEMBER MEETINGS,
GENERATORS, SHRINKING PIES, AND MORE
First off, a quick membership note. My staff and I are working to finalize the arrangements for a series of regional NJGCA Dinner meetings. Those of you who have been members for a while will remember that the organization used to host meetings for members to get together, talk with the staff, and hear some valuable information over dinner. We haven’t had any in a while, but I look forward to bringing them back soon. We’re still ironing out the details, but if you have any suggestions for topics that you would like to hear more about, please send me an email to sal@njgca.org. We plan to have them sometime in early March; we are trying to have details ready so you can in time for printing in your upcoming edition of our quarterly On the Road due to be printed next week. I look forward to seeing many of you soon!
I want you to know that we have been working with a few different contractors on the subject of emergency backup generators. Many of you have reached out to me to express interest in possibly having these generators installed as a safeguard against a repeat of what happened with Superstorm Sandy. We are working on putting together a program that will be advantageous to those of you who wish to install one. I will tell you, as I have told the public and the members of the legislature, the gas crisis post-Sandy wasn’t a power crisis; it was a supply crisis caused by storm damage to the refineries and racks. Nevertheless, I can see how having generator backup could be very useful, in a different post-storm scenario and particularly for those stations which also have convenience stores with products that need to be refrigerated. While volunteering to put in these generators is a business decision you should be free to make, I have and will continue to vehemently oppose any kind of mandate from the politicians in Trenton that would REQUIRE you to install a generator. My research continues to indicate that the cost of installing backup generators, depending on a variety of factors (type of generator, where it would be located on the property, what kinds of hookups and how many, etc.), will run between $10,000 and $30,000 for most stations. That’s a big chunk of change for something that will rarely be in use. Now that doesn’t mean having them isn’t a good idea, but whether or not it’s worth the cost, and worth the cost right now, is something that you as an independent, responsible small business owner should be left to decide. No one knows your business better than you! I currently count 10 different proposals in the Legislature that involve generators in gas stations. Some simply offer incentives for stations that choose to install generators by offering them low interest loans from the government. These are the good kinds of bills, they use the proverbial carrot and not the stick to try and encourage behavior. The bad ones are the mandates, which are the several bills that would REQUIRE every station to install a generator. But at least some of these bills also set up a program to provide low interest loans or tax breaks to help pay the cost. The worst things to come out of Trenton are unfunded mandates. These are the few bills that require you to install generators, period. No provisions for any kind of funding, just ‘hey go buy a generator or get fined because I said so’. I am confident there is not a lot of support for such an ignorant policy, but I will fight against it nevertheless. After a crisis of some kind, politicians are always looking to “do SOMETHING”. It doesn’t matter what that SOMETHING is, it doesn’t even matter if doing that SOMETHING will even change anything, as long as they can tell voters they TRIED, then they’re happy. If it hurts you in the process, then they just say ‘well we had to do something.’ Moronic thinking like this really makes my blood boil! A report released this week predicted that increases in vehicle fuel efficiency will continue to chip away at fuel demand in 2013. The average fuel economy of all new vehicles sold in 2012 was 23.8 mpg, an increase from 2011. It’s not just hybrids and alternate energy vehicles that are pushing the increase either. More and more motorists are buying smaller, more fuel efficient cars than they used to. The trend of declining demand is something I’ve talked about often over the last few years. Even during times of strong economic growth (which we don’t have anyway) demand won’t see the types of increases it used to back in the day. The point is that this trend leaves all of you fighting over a piece of a pie that is steadily shrinking away. If volume is not going to play a role in the survival of your business, then margin is going to have to play a bigger and bigger role. It throws into focus the importance of where you get fuel supply, and whether it is competitive enough to leave you enough room to charge the kind of margin you need to stay prosperous. Over the last few years, the business has moved further and further away from a “Dealer Tank Wagon” based pricing system to a “Rack Plus” policy. I heartily encourage all of you to get away from DTW pricing as soon as you can. I’ve seen too many stations run out of business by greedy suppliers charging up to 40 cents a gallon over rack prices to their stations. I was on the phone today with a dealer looking for a new contract who I had told that if he signed a DTW contract again, I WOULD DRIVE MY CAR THROUGH HIS HOUSE. I extend that same advice to all of you reading this… I wanted to give you a quick update on the minimum wage increase as well. The start of the New Year is when states traditionally increase their minimum wage. Ten states saw an increase, the biggest being in Rhode Island where the wage was raised 35 cents an hour to $7.75. If many of the members of our state Legislature had their way, New Jersey would have seen an increase three times that, to $8.25 an hour. They also want to tie the wage to inflation, so every year would begin for you with another increase in the cost of doing business. Too bad they can’t find a way to guarantee every year would start off with an increase in profit! Governor Christie continues to oppose this plan, but if the Legislature passes the wage increase again sometime this year, then they will go around him and put the issue to the voters in November. Finally, I wrote an OP-ED this week about the proposal to tax plastic bags. You can read it yourself by CLICKING HERE. Thanks for reading – See you next week!
Regards,
BUSINESSES FOR SALE!
CLASSIFIEDS: FOR SALE & HELP WANTED! After running an ad in the Road Warrior over the last month, NJGCA was able to assist a member in selling his equipment! If you'd like to list equipment for sale, or have an open position you'd like to make other industry professionals aware of, please contact NJGCA at 973-376 -0066 and let us help you get the word out!
NEWS AROUND THE STATE: THE NEWS YOU SHOULD KNOW
01/10/2013:
Bill Pascrell, New Jersey Congressman, 'Not Pursuing' Run Against Chris Christie Rep. Bill Pascrell (D-N.J.) is "not pursuing" a race against New Jersey Gov. Chris Christie (R), a move that denies Democrats a candidate some party leaders saw as the strongest. Pascrell used the announcement of a new federal grant to the Paterson Fire Department to tell PolitickerNJ.com that he is not planning to challenge the one-term Christie. State Sen. Barbara Buono (D-Metuchen) is the only announced Democratic challenger to Christie, and some party leaders have been trying to block Buono's candidacy by openly looking for an alternative. 01/09/2013: Wawa Celebrates Opening of First North Jersey Store Wawa Inc. continues to enter new markets -- this time in New Jersey. The convenience store retailer is set to host the grand opening of its northernmost located store on Friday. The convenience store, located at 200 Harrison Ave. in Kearny, N.J. is also the first Wawa in Hudson County. It is the first of three Wawa stores slated to open in the first half of 2013 in the North Jersey region, according to the company. The other two stores are in Woodbridge, located in Middlesex County, and Elizabeth, located in Union County. In addition to this year's planned opening of the stores in Kearny, Woodbridge and Elizabeth, Wawa will begin to enter additional counties in northern New Jersey in 2014 and 2015 with the northernmost c-store to be in Bergen County. The retailer plans to open more than 10 stores in the North Jersey market by the end of 2015, with five stores opening in both 2014 and 2015. 01/09/2013: Chris Christie: The Boss When New Jersey Governor Chris Christie took the podium for his Jan. 8 State of the State address, Trenton’s Democratic legislature received him less as the pugnacious leader of the opposition than as its own conquering hero. Christie was welcomed with a standing ovation, and his speech was staccatoed by thunderous applause. So what if many of those Democrats privately refer to Christie in terms not fit to print? As Christie might say, Don’t be stupid: At this moment, there’s virtually no challenging the man. Christie’s textbook performance after Hurricane Sandy devastated his state in October pushed his approval ratings above 70% and sent his opponents scurrying for cover. Local TV commentators wonder if his upcoming 2013 re-¬election fight might be more coronation than campaign. In short, Christie may now be America’s most popular politician. And at a moment when Republicans in Washington look ham-fisted, inflexible and incapable of governing, Christie is poised to show a demoralized post–Mitt Romney GOP how to regain its majority status. 01/08/2013: Gov. Christie's State of the State address focuses on Hurricane Sandy recovery In a State of the State address with lots of pep talk but no new plans, Gov. Chris Christie today called on New Jerseyans to band together and never lose hope as the state rebuilds in the wake of Hurricane Sandy. "Sandy may have damaged our homes and our infrastructure, but it did not destroy our spirit," Christie told a packed Assembly chamber at the Statehouse in Trenton. "The people of New Jersey have come together as never before. Across party lines. Across ideological lines. Across ages, races and backgrounds. From all parts of our state. Even from out of state. Everyone has come together."
TRAINING CLASSES!!
In order to be licensed as a Motor Vehicle Emission Inspector, you must complete this course and pass a “Written Exam” given by the State of New Jersey. NJGCA offers this training in a ONE DAY State approved training program that will provide an understanding of inspection related issues including EPA Regulations, Safety, Diesel, Customer Service and the New Jersey State Specific Curriculum. This specially tailored NJGCA course fulfills all requirements. PLEASE NOTE: FUTURE DATES WILL BE ADDED UPON REQUEST AND ACCORDING TO DEMAND. CONTACT DEBBIE at 973-376-0066 or DEBBIE@NJGCA.ORG TO LET HER KNOW YOU ARE INTERESTED IN TAKING A SPECIFIC CLASS. THIS WILL ALLOW US TO GAUGE YOUR NEEDS AND KEEP TRACK OF THOSE WISHING TO PARTICIPATE!!
MEMBER BENEFIT PARTNER MESSAGE
TMP Energy Solutions We have had a number of NJGCA members successfully reduce their rate per kWh signing up through our energy saving program. We know it’s difficult to collect 12 months worth of previous electric bills to get an “accurate” analysis when comparing a variable rate to a fixed rate, but we now have another option available. This new solution is a power purchase option; the other program is still in full force and has saved members thousands of dollars. If you sign up for the power purchase option, you will be grouped with other NJGCA members until the minimum KW demand is acquired. By pooling the member’s usage together, you will be able to take advantage, as large energy users do, and receive a lower kWh rate. Each member will receive their own contract. Each member is responsible to sign and return the agreement the day it is received in order to secure the price for their group. Please do your due diligence, so when you receive the proposal and the agreement you will be able to make an intelligent decision. If by chance, you still want us to assess you bills, to give you a price to compare, we will require12 months of your most recent utility bills. There are no bills required, but we would still like to have one bill per meter on file to check account #’s, meter #’s service addresses and other pertinent information incase there is a problem. The term of the agreement is for 12 months. During this term period, you will have price protection against any energy price increases along with a low fixed kWh rate. If you are interested in becoming part of this power purchase option, please contact Greg Cannon at the NJGCA. Remember when you sign up your energy through the NJGCA Energy Program, TMP makes a considerable donation to the NJGCA Scholarship Fund through their proceeds. This has no affect on your rate, and costs you nothing out of pocket. We hope to help hundreds of NJGCA members reduce their utility costs by participating in this and our other cost reduction programs. Our purpose, in the endeavor, is to help NJGCA members lower their energy costs while supporting the NJGCA Scholarship Fund.
Contact GREG CANNON at 973-376-0066 or email Greg at greg@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.
POLITICAL PARTICIPATON: THE NJGCA PAC
Promoting our agenda in Trenton is of utmost importance to NJGCA and our members.
To truly understand the importance of supporting our allies, consider our successes in Trenton:
We defeated BELOW COST SELLING We made history in getting FIRST RIGHT OF REFUSAL signed into law! We have built large support for RIGHT TO REPAIR and got it passed out of the Assembly We defended your small business against the false accusations of Attorney General Anne Milgram We gained wide support to move New Jersey to an all PIF Inspection System and close the CIF lanes ...and MUCH MORE!! In each instance, we achieved these goals with the help of our friends in the Legislature! If every member contributes just $100.00 we will be able to provide the help necessary to ensure victory for our allies.
PLEASE SEND YOUR CONTRIBUTIONS TO: I understand that times are tough for all NJGCA members, but this is just as important as any battle we have fought in the past. We have made great progress in Trenton. I hope that you will answer the call.
THE MEMBER TOOL BOX
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