March 22, 2013

Dear NJGCA Member:

Thank you for reading this week's NJGCA Road Warrior!

First, I have a bit of an unusual request from you. I need some volunteers who have security cameras at their pumps and would be willing to allow me to have recordings of the activity at the pumps.

An allied organization that we have worked with in the past with the “Right to Repair” issue has been challenging the Federal Trade Commission to enforce the Magnuson Moss Warranty Act – particularly with respect to the recent onslaught of vehicle manufacturers’ attacks on all things aftermarket – parts and service. Magnuson Moss is the law that prevents manufacturers from voiding your customers warranties because they had their car serviced in your shop. Well it seems as if they are still at it by trying to deny warranty coverage because car owners have not taken certain “pro-active” steps like checking their oil. It seems as if manufacturers all like to sell their cars while representing extended service intervals such as having the oil changed every 7500 miles rather than 3000 miles, however, they fail to mention that the extended intervals are based on customers checking their oil every time they fill up. Who does that anymore?

One of the points that we are trying to make is that consumers just don’t get their oil checked any more – or very rarely anyway. So…to prove this point we would love to have video footage of service station cameras at the pumps demonstrating that customers just pull up to get their gas and leave without opening their hoods. We know this to be true, and we wouldn’t care if the odd one was filmed checking their oil – it would just make our point. In order to have actual proof, I am looking for volunteers with cameras at their pumps to send in some video of customers pulling up, getting their gas and driving away without ever opening their hood. If you can help us out, please reach out to me at sal@njgca.org or 973-376-0066. Thanks, and remember you’re not just helping us, you’re helping yourself!

Once again the NJGCA / Meadowbrook Workers Compensation program is returning a dividend to members in good standing that are participating in the program. If you are not in our program then you should be. I know many of you have friends or relatives that sell you workers compensation insurance; however, do they return a portion of your premiums when the insurance company has extra revenue? Workers compensation is required by state law and the rates are also set by the state. Participating in the NJGCA program gives you a unique opportunity to keep a few extra dollars for yourself. No one else can do that. Most of our members will be receiving a check in the next week for over $500, and a few will receive over $1500. Enough said.

Sometimes Trenton is so crazy that I can barely take a breath before getting walloped with wave after wave of legislation that needs my attention. That’s what things have been like in Trenton so far in 2013. I’m looking forward to the Easter break when the legislature takes some time off so I can stop and catch my breath and deal with the thousands of other issues that affect you.

Rising credit card fees is one of the few issues that almost every single business in America (other than banks) can agree is a burden. Credit card fees are the highest expense for retail businesses after the cost of the product and the cost of labor. The cost of these fees has been stealing a greater share of your slim profit margin over the last decade. This is a trend that is almost certain to continue unless there is some government intervention to ensure competition amongst banks takes place.

I’m the last guy who ever supports the government getting involved in the private sector. But what has happened with credit cards the last few years is the exception to that principle. The credit card companies have become, as my colleague from the Fuel Merchants Association of NJ, Eric DeGesero, recently put it: an oligopoly. Basically it’s a monopoly, but since the word monopoly means one and since this is more than one, the correct term is oligopoly (please excuse me the sidetrack into high school English). Visa and MasterCard alone constitute approximately 80% of the credit card market in America.

In a perfect world there might be a dozen different credit card companies and they’d all be competing with each other to charge merchants smaller fees in exchange for those merchants choosing to accept their card. A truly free market would also mean that the banks which offer the credit cards would compete amongst each other to offer lower fees, but what really happens is that Visa and MasterCard set whatever level can be charged as an interchange fee for every card provider. If this sounds to you like price fixing, you’re not alone! We don’t want government to regulate the rates credit card companies charge as that would violate my principle of government intrusion in the private sector. But we do want the government to stop the illegal price fixing that is practice amongst the banks, just like it is illegal for you to set prices at the pump with your competitor. Once banks are forced to compete, then naturally credit card fees will come down.

You know better than anyone that there’s no way they’ll bother negotiating rates with you today. They’re in a position where they can effectively tell you to pay their rates or SHOVE IT. After all, your only option is to simply decline to accept credit cards. When I was in the business 30 years ago, that was a perfectly valid option. But today, in our digital age, to not accept credit cards is as feasible as saying that you refuse to accept cash, and you’ll only be paid in gold coins!

A few weeks ago credit card surcharges were all over the news. Legislators wanting to protect consumers from surcharges, even though NJGCA and other business groups had said no business in their right mind would ever charge them, trampled each other to see who could introduce a bill the fastest. However, since credit card fees are now on everyone’s mind, we have decided to use a little political jujitsu and change the narrative to one about how exorbitant the fees are that the card companies charge merchants. Let’s just say that we are trying to make lemonade out of lemons.

Two weeks ago the Assembly Consumer Affairs Committee had a historic hearing on the issue of credit card fees. This hearing was a success for no other reason than it raised awareness among members of the legislature and the press about burdensome credit card fees.

The card companies don’t just set prices. They also set rules to try to hide the fees and avoid any price pressure. Led by Eric DeGesero from the Fuel Merchants Association, NJGCA and our allies at the Food Council of NJ, and the NJ Retail Merchants Association contributed jointly to hire an expert on this issue from Washington DC. Doug Kantor’s testimony was persuasive, in-depth, and very enlightening.

I encourage you to set aside some time and read Doug Kantor's testimony by CLICKING HERE. You can also read my testimony by CLICKING HERE.

It was interesting to watch as representatives from Visa and Mastercard choked out statements that were a pile of falsehoods (I am being polite). They stuttered and stumbled trying to defend their price fixing practices, and at no time in any of their testimony did any one of them deny the practice of price fixing. They simply tried to justify the need to continue their practices!

I want to especially thank Assemblyman Paul Moriarty (D-Gloucester), the Chairman of the Committee, for choosing to hold the hearing. My colleagues and I will be meeting with Chairman Moriarty next week to discuss actual legislation to be introduced that will make us the first state in the nation to take meaningful action to bring down the cost of credit card fees.

You can read a great article that appeared in the Bergen Record last week that gives an accurate explanation of how credit card fees affect us all. The article quotes Doug Kantor, who is the expert we invited to give testimony to the Assembly Consumer Affairs Committee.

The other issue that has been consistently popping up is generators. As I’ve reported to you, I have been loudly making the case to the media and politicians that the gas crisis we saw after Superstorm Sandy was not a power crisis that could be solved with generators, it was a matter of not being able to get gasoline to the retail stations. Mandating generators that cost $30,000 would not have solved the problem; all it will do is burden small businesses.

After the crisis had passed there was a storm (no pun intended) of politicians more interested in press releases that make it sound like they’re doing something good rather than actually doing something good. Eight different bills were introduced that simply say “install a generator or get fined”, with no mention of how to pay for it, or if it would even solve the problem. You have heard me refer to stupid legislation such as this as “feel good” legislation. It makes legislators “feel good” but accomplishes nothing.

Thankfully, not all politicians in government are like that. Assemblywoman Annette Quijano (D-Union), the Chairwoman of the Assembly Homeland Security & State Preparedness Committee, has really impressed me of late. Rather than rush to action she brought together all the different representatives of the industries that would be directly affected and listened to all of our concerns and ideas.

After listening and thinking about the issues, she took action and introduced A-3930 which passed her Committee last week. This bill would establish a pilot program in which gas retailers who CHOOSE to participate would be given zero interest loans from the state for up to $10,000 in order to install the appropriate wiring and transfer switches to make them generator ready. They wouldn’t need to shell out for an actual generator, but instead make it so that FEMA or someone else can drop off a generator in the event of a prolonged power outage and have it get the pumps up and running.

The pilot program will run for 2 years and then report back to the state government. To be able to apply, your station must be located within half a mile of a state evacuation route, the NJ Turnpike, Parkway, or AC Expressway. So if you’ve been considering investing in making your station generator ready and you’re located in an eligible area, I recommend you give further consideration should this bill actually be signed in to law by Governor Christie. I will, of course, continue to update you on the bill’s progress.

I know many of you sell cigarettes so I want to share some news in the tobacco world. We’ve written in past editions of the On the Road magazine about the ongoing court battle over graphic cigarette warning labels. Basically the FDA tried to mandate that every pack of cigarettes have the top half of the box covered by a very graphic picture of the side effects of smoking and also display a quit smoking help line phone number. Tobacco companies sued and said the packaging requirements were violations of their 1st Amendment freedom of speech because they went beyond mere factual warnings and into the realm of advocacy. The courts agreed with the manufacturers, and this week the government officially decided to accept the ruling and not take the matter to the Supreme Court, where they likely would have lost. This means that these unfair packaging requirements will not become law.

It’s not all good news in the tobacco world unfortunately. Dopey New York City Mayor Michael Bloomberg’s latest attempt at social engineering will be to ban all retailers from publically displaying any tobacco products. We’ve reported in the OTR about a little town in upstate New York that recently attempted to do this but backed down under the threat of a lawsuit. Bloomberg also intends to ban any kind of discounts on cigarettes and to set a minimum price for all packs of cigarettes sold in city limits. That is, if people even know that a business sells cigarettes since they won’t be able to display them.

As we saw with his ridiculous attempt to ban the sale of large sugary drinks (which was recently overturned by a judge before it could go into effect, proving there still is some sense of liberty and common sense left in our country), Bloomberg thinks it’s his responsibility to promote healthy living to his subjects citizens even if it means restricting their freedoms and the freedoms of small businesses to sell legal products.

It’s such a ridiculous notion, and an insulting one besides. He thinks that “common” people are so stupid and sheep-like that simply by seeing a product they won’t be able to control themselves and will have to buy no matter what the detrimental effects are. If he thinks people are that stupid and easily influenced, then maybe he thinks they shouldn’t have the right to vote?

I barely had time last week to write the Road Warrior, so I made up for it this week…..but today’s message is already lengthy and there are still a few other interesting things that I would like to share so I have already started writing next week’s issue.

Thanks for reading – See you next week!

Regards,

Business Opportunity:
Successful High End Auto Repair Shop in business for 35 years.

•Location – 34 Rt. 206 South – Somerville, NJ
•Easy Access to all Major Highways. Rt. 287, 202, 78.
•All Equipment Stays (with the Exception of Tool Boxes), including 3 Rotary Lifts – Compressor – AC Machine – Press – Brake Lathe – All Office Furniture.
•Business Records Available For Review.
•Landlord in Process of Renovating the Facility.
•Tenant Lease Term to be Negotiated with Landlord – Monthly Cost: $3200.
•I am asking $60K for Turnkey Operation. Will Consider $42K down and $1500 per month For 1 Year to Qualified Buyer.

Serious Inquiries Please Contact Bill at 908-887-1385

NOTICE TO ALL MEMBERS:

Do you have a business for sale? Are you looking for a new location or opportunity?

NJGCA was recently able to lend a hand to members looking to sell their business by getting the word out. Since everyone reading this message is involved in the small business gasoline retail, convenience store, and automotive repair trades, it is an ideal medium to connect with interested buyers and prospects!

If you'd like to list your business for sale, publish a location you're selling, or are seeking a business partner for your establishment, please contact NJGCA at 973-376-0066!

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!

TRAINING CLASSES!!
-ALL CLASSES WILL BE HELD AT NJGCA HEADQUARTERS-
66 Morris Avenue - Springfield, NJ 07081 (Union County)

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!!

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.