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August 20, 2010 I had no clue what I was getting myself into, but I learned quickly about competition and how slim the profit margins are in the gasoline business. The first task after unlocking the door was to lower the price of unleaded from 61.9 cents to 59.9 cents, in order to meet the competition around me. It is now 32 years later and the first impressions of that day linger with me still. I can remember agonizing over how much I was working and how little I was making. I can also recall the stress of trying to juggle all those costly expenses while attempting to balance my books. For those reasons, not a day goes by that I haven’t felt the pain of others saddled in the same situation. And let me tell you, it’s still debilitating and painful for me as I hear from many of you stuck in the same situation. After all, I was a small business owner who had to learn the hard way. In fact, I’m not too proud to say there were more times I was taking money out of the bank to keep the place afloat than putting money into the bank to pay myself. Eventually after 23 years I closed the doors and went out of business. Often in business (and in life) perception becomes reality. For good or ill, the public perceives your worth as a business owner linked directly with the sign you have hanging out on the street. The way customers react to your price is the same way they look at every other product and service. And if you were in their shoes, wouldn’t you do the same? What do you do when you buy a product? It is human nature to seek the lowest price! Have you gone to buy a car recently? The average transaction price on a new car today is somewhere around $25,000, yet most dealers make only $500 per vehicle sold. What about buying home appliances? You may go to a big-box appliance store and buy a $1,200 washer/dryer set, but the store only makes $50.00 to $100.00 per sale. In both instances, the competition out there is driving down profit margins so low that many businesses will lose money on a product only to try and stay afloat on servicing them after the sale, or selling allied products with higher profit margins. And this is the world in which you operate. This plain truth doesn’t lessen the agony you experience daily, but it’s the cold hard truth of the reality in which your business runs.
With all of this in mind, the marketplace should have created at least 5¢ better margin for you over the last few weeks. What’s more, this environment should last for about a month more and allow you reap additional profit. Why? Because overall the market has remained relatively stable. You and I follow wholesale prices, and since January, things have been relatively consistent. When prices go up, it’s because the profit takers at the rack have tried to increase their own margins – even if the demand has not increased. Each time prices rises without the actual demand increasing, a rollback follows and usually you can grab a bit of extra margin as the rack prices decline. That is until some moron runs out to lower his price and try to grab extra market share. I say “moron” because obviously these idiots have no idea how to use a calculator or do simple math.
Okay, enough of that; I am going to switch gears a bit and talk about a profit-eating-problem you are all plagued with: runaway healthcare costs! As an NJGCA Member, you have the opportunity – nay, the RIGHT – to take advantage of our 35 year-partnership with Association Master Trust (AMT). Unlike other healthcare insurers, AMT is a non-profit Healthcare Trust that is operated very frugally, ensuring that your premiums remain lower than other insurance carriers. Those of you who already participate in the program know that AMT rates are going up 9% this year. While some of you have called to complain over this increase, those of you who have done your homework will know that competitor rates are rising between 20%-25% this year alone! That means that while you may be paying more this year, you are still paying FAR LESS than other businesses are paying! Yeah, you could go to a carrier down the road, and they will promise you that they can save you money, but read the small print!! Often these providers will give you a lower quote, but cut your coverage and benefits in the process. If you then match up their lesser benefits with a similar plan from AMT, you will save even more money. Members have been doing that for a year. DO NOT BE FOOLED!! When you compare apples to apples, I guarantee you, that you will save money by exploiting our partnership with AMT!! Consider the following: 1). AMT is subject to New Jersey state laws and only a member of one of the 13 separate organizations which comprise AMT can take advantage of these benefits. NJGCA is one of the 13 associations that comprise AMT. 21). New Jersey State Law requires that EVERY AMT Board of Trustee is also a plan holder themselves. That means that these individuals can’t raise premiums or expenses without raising their own coverage. Why would they raise them if not absolutely necessary?! 3). The management at AMT answers solely to the 13 organizations which make up the board – that’s it. There are no stockholders, partial owners, or outside interests. That means that AMT DOES NOT NEED TO MAKE A PROFIT to satisfy shareholders. Technically the shareholders are the members of the 13 associations. The would–be-profits are returned to the policyholders in the form of lower premiums. That is why New Jersey Law requires that ONLY members can purchase Healthcare Coverage thru AMT. BOTTOM LINE: If you are a Member and you are NOT taking advantage of AMT’s many healthcare plans, then you are passing up an extremely valuable benefit and not taking full advantage of your NJGCA membership.
So please call NJGCA Headquarters TODAY at 973-376-0066 to start saving money and helping your bottom line!
UPDATE: NEW PIF CLASSES ADDED!!
CALL FOR FUTURE CLASS SCHEDULE INFORMATION
INITIAL EMISSION REPAIR TECHNICIAN CERTIFICATION CLASS
New Jersey Gasoline C-Store Automotive Association (NJGCA) is offering an INITIAL ETEP Certification course. This is the entire program, section 1 – 7. This is everything you need to become a licensed Emission Repair Technician.
Our Course includes:
LOCATION:
CLASS COST (INCLUDING MANUALS): PLEASE NOTE: We are always in the process of putting together additional classes. If you are interested in taking classes in this time period, please call NJGCA and let us know so we can add you to the list.
Call Debbie Hill to enroll in the classes at debbie@njgca.org or call 973-376-0066. POLITICAL PARTICIPATON: THE NJGCA PAC
Ensuring our friends in the legislature are re-elected and advocating for our agenda in Trenton are of utmost importance to the agenda of NJGCA. It is for this reason that your Association has established the NJGCA PAC. For too long, the weight of funding our Political Action Committee, the arm of the Association responsible for political donations, has rested upon the shoulders of a few. This is not fair to them, and it is not fair to many of you who are relying on the benefits of good legislation being passed in Trenton. To truly understand the importance of fundraising for our allies, let’s look back upon the overwhelming successes of the last year: NJGCA successfully lobbied against BELOW COST SELLING. If approved, BELOW COST SELLING would have cost each of you thousands of dollars and put many of you out of businesses. NJGCA leaned on some of our friends in the Assembly and literally had the bill pulled off the floor on the day it was scheduled to be voted on. Our friends in the Legislature helped us get this accomplished. NJGCA made history and led the charge to pass the most comprehensive protection of franchisees in decades with FIRST RIGHT OF REFUSAL legislation. FIRST RIGHT OF REFUSAL passed only because NJGCA and dealers throughout the state were able to lean on several friends in the Assembly and the Senate. NJGCA has been rallying support for RIGHT TO REPAIR over the last two years among key legislators. This would end the practice of car manufacturers denying you the codes necessary to complete the repairs you make on your customers cars. Every state has tried to pass RIGHT TO REPAIR and no state has even been able to get the legislation out of committee. Because of our friends in the Legislature, NJGCA has been successful in getting this bill passed by the Assembly and now awaits a vote in the Senate. I am asking some of you as individuals to make a contribution and attend a fundraising event sponsored by one of our friends in the Assembly. However, we will not be able to host events for all of our friends, so the NJGCA PAC will have to make contributions. You will be receiving letters soon from the NJGCA PAC asking you to make contributions. 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.
8/18/2010:
8/18/2010:
8/13/2010: CLICK HERE TO READ MORE ARTICLES IN OUR “NEWS AROUND THE STATE” ARCHIVE |
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