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March 28, 2013 Here is what you will find in this edition:
JOIN NJGCA ON FACEBOOK -- CLICK HERE EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
NJGCA RECEIVES CHINESE DELEGATION
HAPPY PASSOVER HAPPY EASTER Before I begin this week’s message, I want to recognize that we’re in the midst of a very special time in the Judaic and Christian calendars. On Monday night, the Passover festivities began and are continuing through next Tuesday night. This week also brings us Holy Thursday, Good Friday, and Holy Saturday before a final celebration on Easter Sunday. These are days of sacred importance for the followers of Abrahamic religions. In fact, even some sects of Islam mark these holidays in their own traditions. It’s a time for family and reflection, and I hope that, no matter what you are doing this week and this weekend, you’ll take a few moments enjoy this special time with your loved ones Therefore, on behalf of my staff and I, here’s wishing you a very Blessed Passover and Happy Easter! In business, advocacy, or life, you never truly grasp how far your deeds and words reach until something unexpected happens. A recent and unique experience reminded me of that and I wanted to share it with you. A few weeks back, NJGCA was contacted by a Chinese trade group called FCC. The organization is based is California, acts as a “quasi-Chamber of Commerce”, and asked if we would consider meeting a delegation of Chinese petroleum executives at our headquarters. Seems the group was on an “American tour” of the East Coast and wanted to discuss the domestic gasoline retail market with our Association. I actually deleted their original email requesting a meeting with me thinking that it was spam. After receiving repeated phone calls, I searched my deleted files to retrieve that first email introduction. Getting a series of calls and emails from an organization you’ve never heard of usually puts your guard up. Persistently hearing from them as it relates directly to your vocation or industry, and it starts to pique your interest. After we did some investigating on our end, I agreed to a meeting, if only to satisfy my curiosity. Though I still wasn’t exactly sure what to expect, what actually happened was beyond my expectations. On the morning of March 18th, we put out some refreshments, printed out a presentation we’d cobbled together, and headed to our boardroom to greet our guests – 23 Chinese oil executives, plus an interpreter! Our visitors were representatives from Sinopec, a large Chinese oil company, and PetroChina. Much like Standard Oil (Exxon’s ultimate corporate predecessor), Texaco, or Mobil were in the early days of the domestic gasoline business, Sinopec does exploration, refining, and retail/marketing of petroleum products. In other words, they occupy all three-legs of the industry, from soup to nuts. Take a look at a few pictures from our meeting below: .JPG) NJGCA Executive Director welcomes the Chinese delegates to headquarters and explains what the Association does for its members. .JPG) NJGCA Executive Director Sal Risalvato listens to a translation from the interpreter during the meeting. .JPG) Sal listens to one of the leaders of the Sinopec delegation as he explains the Chinese oil and gasoline market. .JPG) A Group shot of all members of the Chinese delegation with NJGCA staff outside our Springfield headquarters. Sal appears in the center of the banner, while Eric Blomgren and Nick De Palma appear to the left. As their home market is currently booming, many domestic Chinese companies are looking to expand beyond East Asia to reach international markets. In recent years, some segments of the Chinese domestic industry have done just that, mostly in electronics, automobile manufacturing, pharmaceuticals, and other consumer goods. Though the reach of many of these companies has been limited in the United States, it is quickly changing. Taking a cue from their compatriots, Chinese oil producers like Sinopec (and their domestic rival, PetroChina) are looking abroad to make similar investments. In fact, a large part of what the delegation wanted to discuss is how the retail market works in New Jersey and the rest of the country. Though their specific plans weren’t shared with me, they did seem interested in much of what I had to say, especially as it relates to profit margins and operational regulations. In fact, there seemed to have been some surprise at how tight retail profit margins are in the United States and the number of rules retailers must comply with. I’m obviously not an expert on Chinese gasoline retailers, but after reading their faces, I imagine things are a bit more “lax” in China, allowing the company (who operates their branded-station locations directly) to eke out higher profits. We’ve seen foreign energy companies invest in the United States with varying success. Shell and BP have done relatively well, while the verdict is still out on brands like LUKOIL. Will Chinese brands like Sinopec be next? I have no idea, but if they do, at least we’ve already met them and know who they are. Which brings me back to my original point: you never truly grasp how far your deeds and words will reach. How did FCC in California or Sinopec in China ever hear about NJGCA? I never got a really satisfactory answer, and truthfully, we may never get one! However, it’s safe to say that something we did at sometime attracted the attention of someone within their organizations or we wouldn’t have ever heard from them. There’s a lesson in that. While we have a tendency to look at things from a hyper-local perspective – both in our home municipalities and around the state – the things we do and advocate for on a daily basis reach well beyond our own borders. And if you think back a few months, this actually isn’t the first time this has happened. You’ll recall that after we protested the higher-than-market-prices being charged to LUKOIL franchisees, we got a phone call from two Russian newspapers and several TV and radio stations asking us to comment on the event. On a personal level, I had a lot of fun in the meeting. It was an interesting exchange and we learned quite a bit from the encounter. Plus, in the space of one morning, yours truly went from Executive Director Sal to Ambassador Sal. Staffers Nick De Palma and Eric Blomgren were also there to participate, and I’m happy to report, we didn’t disrupt US-Sino relations during the two hour meeting! How about that?!?! Conducting a meeting thru an interpreter was truly an interesting experience. Ultimately, what do we take from this? First, there’s always someone paying attention to something that we’re working on. It’s a crapshoot on who that could be or how significant it is, but the point is, we don’t live in a vacuum and in today’s modern world; we’re always on the record. Secondly, in taking note of that first point, we need to make sure we’re “good examples and stewards” of our businesses and the industry. Part of that means being a small business advocate when threatening issues arise and part of it means adhering to the highest levels of professionalism. Doing those things means that not only are NJGCA members getting noticed in Trenton, but apparently, in Beijing as well. Again, from all of us at NJGCA, a very blessed Passover and Easter to everyone! Thanks for reading – See you next week! Regards, Sal Risalvato Executive Director
BUSINESS FOR SALE!
Business Opportunity:
•Location – 34 Rt. 206 South – Somerville, NJ
Serious Inquiries Please Contact Bill at 908-887-1385
Do you have a business for sale? Are you looking for a new location or opportunity? 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!
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
03/28/2013:
Jobs added in February as jobless rate falls The State's unemployment rate fell in February to 9.3 percent, a 0.2 percent drop from January, as 12,900 people found jobs. According to Labor Department numbers, of the total number of jobs added, 7,100 positions were in the private sector. 03/28/2013: New Jersey again ranks near bottom of tax-friendly states According to a yearly study conducted by the Mercatus Center at George Mason University, the Garden State ranks 48th of 50 states in terms of "freedom". To extrapolate the ranking, researchers compared taxes, regulations, and restrictions around the nation. Other factors included in the study were "issue-oriented freedoms" -- such as gun-control, property rights, travel-related freedoms -- which scored poorly. In this year's report, North Dakota, South Dakota, Tennessee, New Hampshire and Oklahoma were the top five “freest” states. Click above to read the full report. 03/27/2013: Automaker wants changes to mileage-calculation Jim Farley, Global Marketing Chief at Ford Motor Company, is calling on federal authorities to amend the way vehicle mileage numbers are calculated. According to Farley, the numbers cited by the EPA are misleading to consumers, who typically do not match EPA estimates in real-world driving situations. This is especially true for motorists who own electric and hybrid vehicles. The gap between rated and real-world mileage has also led to litigation, as diminished customer expectations are creating a backlash. 03/23/2103: Ethanol mandates creates backlash, could lead to higher gasoline prices? As the government mandates higher ethanol content in ordinary pump fuel, a battle is raging over how much the revised blend will cost motorists. The argument comes as the U.S. must use 36 billion gallons of biofuel in motor fuel under a 2007 law. Currently the United States uses 15.2 billion gallons of ethanol. Some industry watchers believe that mandate will lead to significantly higher prices for diesel fuel and gasoline, and are asking Congress to amend the 2007 law. Click above to read the full article.
TRAINING CLASSES!!
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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