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 EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS! 

REMINDER ON EMISSIONS INSPECTIONS, PROPERLY CHANGING YOUR PRICES, PRESS RELEASE, BAD APPLE SEASON AND YOUR RETAIL MARGINS

Last week we informed you of the looming battle of the state inspection program.  As I write this, the powers that be are debating about what the future will hold for the inspection program and how it will be shaped.  If you haven’t read last week’s Road Warrior on this, click HERE to review it.

There was an important homework assignment that we urged you to complete in last week’s newsletter, namely for your to take an online survey that MVC has put together.  If you haven’t taken the survey, click HERE to take it or go to the NJGCA homepage to find the link among our important headlines.

If you plan on attending the inspection program hearing, please let me know.  It is important that anyone who attends speak with me so that I can provide talking points and make sure we are all on the same page.  This is incredibly important, for if we aren’t speaking the same language or make contradictory points, it will harm our message and create confusion among the panelists. 

I hope that some members of the PIF community will be there to participate.  I also hope anyone who isn’t a PIF, but is interested in becoming a PIF, will be there to participate as well.  Keep in mind that this will be a public meeting, so we must also anticipate whatever comments, concerns and perceptions that come from public participants. 

Remember, if there is one thing that has to happen, and one theme that we must continue to hammer away on, it is that all the CIF lanes must close.  While this makes a great deal of sense from a fiscal and budgetary sense, it also creates the greatest number of opportunities for motorists and the small business community.  If the CIFs remain open and operational, we lose any kind of leverage we have to shape the next inspection program. 

Look for some emails between now and next Wednesday on this issue.  If you plan on attending the meeting, it will be held on October 19th from 7:00 to 9:00 pm at the Motor Vehicle Commission's Regional Agency at 120 S. Stockton Street in Trenton, New Jersey.

Don’t forget – Contact me at sal@njgca.org if you plan on attending the meeting!

As you’ve heard many times before – and as I have stated time and again in countless editions of the Road Warrior – one bad apple will spoil the entire bunch.  The most recent example of this is Irfan Hassan, the owner of five service stations in Essex and Hudson counties who was caught violating the law for the NINTH TIME.  In his latest offense, Mr. Hassan was cited for operating one of his stations without a retail dealer’s license.  You can read more about this BAD APPLE and his latest infraction by clicking HERE.

Following the law isn’t just about complying with the rules; it’s also about competing fairly and public perception of our industry.  On the one hand, you’ve paid for your retail dealer’s license and have kept up with renewing it.  This is an expense that you’ve put out and an administrative obstacle you’ve had to comply with.  Isn’t it unfair that this BAD APPLE should get away with not paying for his while you’ve undertaken this burden?  On the other hand, when someone like this dealer doesn’t follow the rules and gets caught (and you WILL get caught sooner or later), you create negative press that hurts an entire industry.  Whether you realize it or not, you’re not just in business for yourself; you’re also an ambassador for other service stations and the small business community. When someone like this BAD APPLE creates negative press, is it any wonder why consumers (and the powers that be in Trenton) don’t care much for our industry?  Is it really a surprise that we have such a bad reputation in the court of public perception?  Not paying for a retail dealers’ license is one thing, but dumping regular gas in to the premium is outright fraud and should be punished severely.  This guy didn’t just cheat his customers….HE CHEATED YOU!

It’s for these reasons that I will continually support the Office of Weights and Measures (OWM) to help us rid our industry of creeps like Mr. Hassan.  He’s a repeat offender; he’s hurt the public trust; he’s a poor example of a small business owner; and he’s the kind of BAD APPLE that can ruin the bunch. 

Our organization has maintained a zero tolerance policy since my first day on the job in January 2007.  I have applied it, and will continue to apply it, to both members and non-members alike for breaking the law.  I will always go the extra mile to defend and protect honest small business owners and members in good standing.  Everyone makes mistakes and everyone slips up now and then.  But for anyone who deliberately and intentionally violates the law and the public trust, I will turn them in without hesitation.

For these reasons, if you have any legitimate suspicions or concerns of a competitor cheating customers by commingling gas, altering the calibration on pump meters, or using deceiving signs, et al. you should contact me! 

Want more?  Here’s a recent case brought by OWM and it’s a good lesson for all of you when changing your prices.  One of the largest big-box competitors out there was recently fined for leaving their pump topper signs unchanged for eight hours.  That location, a Wawa in Phillipsburg, was later fined by OWM.  You can read the full story HERE.   As I’ve said before, I do believe human error happens and a lack of oversight can create problems for retailers.  In this instance, I don’t believe that the Wawa station cited did anything intentionally to deceive customers.  But it is a good excuse to caution you on the proper way to change your prices. 

Whether it’s your street sign or your pump topper signs, there’s a proper procedure for everything.  If you are raising your prices, you should change all of your signs to reflect the higher price before you raise the price on the display of your dispenser.  If you are lowering your price, then it is okay to lower the price on the dispenser and then lower the price signs downward.  In this endless game of public perception and customer service, the goal is to never to have a consumer say that they were mislead and had to pay a higher price than was posted on your pump. This was what Wawa did and they got slapped for it – a judge fined them and forced them to shut their doors for five days!

If you think about this rationally, all the potential problems that can occur for not following procedure can create bigger problems than they’re worth.  Once a customer lodges a complaint, state officials have to follow their own established practices and their hands are tied.  Compare this to when they routinely stop at your shop and see that signs aren’t posted properly.  When a customer complains, their hands are tied and some kind of infraction is going to be handed out.  When they stop by routinely to check up on you, there’s a shot that they will be lenient and cut you a break…If you are respectful and cooperative.  Which situation would you rather be caught in?  Even the best run operations make human errors, so be mindful of your procedures and respectful to both your customers and OWM.

You should be paying particular attention to your margins.  This year, your overall your margins should have been better than they were in the previous two years – but they are still susceptible to the endless volatility in the market.  That doesn’t mean that you are home free or shouldn’t be on the look out for gouging.  In fact, I’m quite concerns with suppliers who are gouging retailers on their wholesale prices.  In an ironic twist, the media always seems so concerned with stations gouging the public, yet completely ignores suppliers who may be doing the same to service stations.  So much for the press being ‘fair’ in their reporting.

I bring this up only because you should be aware that one wholesaler in particular has been especially greedy.  In fact, this supplier has enjoyed huge margins, jacking up their wholesale prices to dealers that they sell using Dealer Tank Wagon (DTW) rather than permit the retailer to gain extra margin.  I also suspect that this supplier has overcharged retailers than have contracted rack-plus pricing. 

If you are a retailer on a rack-plus contract that is supplied by Lehigh Gas, and you feel that you are falling prey to their pricing practices, you should contact me immediately at sal@njgca.org with the details.  Though I will need to speak with you and investigate further to know for sure, there may be a course of action we can take.  If you are a retailer that is being supplied by Lehigh Gas at DTW contract, unfortunately, you must endure their greed, as there is little I can do. 

Lastly this week, I want to remind you about our Calibration and Regulatory Seminars that we will host on November 9th and 10th.  You should have received – and will soon receive again – information on this important event.  It is in your best interest to attend this seminar to stop giving money away at the pump and learn to comply with the latest Labor and Environmental standards.  Mark your calendars then contact our offices to RSVP!!

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

NEWS AROUND THE STATE

10/12/2011:
Auto manufacturers agree to single standard for EV charging system
A group of seven automakers have come to an agreement on an international standardized approach to charging electric vehicles.  The consensus was agreed upon by Audi AG, BMW AG, Daimler AG, Ford Motor Co., General Motors Co., Porsche AG and Volkswagen AG.  The agreement will permit vehicles produced by these automakers to use a single system for vehicles sold in Europe and the United States, utilizing a one vehicle inlet-charging connector and a common vehicle-to-charging station communication standard. Automakers hope the standardization will help boost sales of electric vehicles.

10/12/2011:
Public employees expect 9% rise in healthcare rates
State, municipal and public school employees will pay more for their healthcare coverage under a plan approved by two state panels.  The rise in premium rates means that 850,000 workers will pay a larger share of their healthcare obligations, estimated at 9% for active state employees and 3% for retirees. State officials hope to offer as many as 15 health insurance plans next year, compared to only three choices for state and local employees this year. 

10/12/2011:
New Jersey to receive federal small business aid
To help spur small business growth in the Garden State, Trenton officials anticipate $33.8 million in federal aid over two years that would be used for business loans and job creation. The funds will be allocated as part of the federal Small Business Jobs Act of 2010.  The state Economic Development Authority (EDA) will use the funds to make loans and credit guarantees through existing state small business programs.  For information on EDA’s small business programs, visit http://businesslending.njeda.com, visit the state’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789 to learn more about New Jersey business growth opportunities.

10/11/2011:
Poll says residents want offshore wind power, are willing to pay for it
A recent poll illustrates that 78% of New Jersey voters want wind farms off the New Jersey coast and are willing to pay slightly more in their electric bills to pay for it.  The poll states that residents would be willing to pay $2 more a month in costs.  Pundits have criticized the poll’s methodology, but agree that residents are willing to pay more for clean energy. 

CLICK HERE TO READ MORE ARTICLES IN OUR “NEWS AROUND THE STATE” ARCHIVE 

MEMBER BENEFIT PARTNER MESSAGE

TMP Energy Solutions
Another Way to Save on Your Energy Bills

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 Phil Apruzzi 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 Phil Apruzzi at 973-376-0066 or email Phil at phil@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.