August 26, 2011

Dear NJGCA Member:

Here's what you'll find in this edition of the NJGCA Road Warrior, and thank you for reading:

EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
•Bath Salts banned, gasoline market conditions and meetings this November

NEWS AROUND THE STATE
•Governor expected to decide soon on ‘fracking’ ban
•Motorists drove the fewest miles since 2004
•Ford, Toyota forge collaboration on hybrid trucks
•Rare earthquake rattles the Garden State and the region

APPRAISAL SERVICE
•Regency Property Appraisers: Serving all your appraisal needs in NJ, NY, and beyond!

TRAINING CLASS SCHEDULE
•ETEP TRAINING CLASS SCHEDULE!

MEET THE FOLKS AT LIBERTY GAS
•Looking for a new brand for your station? Take a look at the opportunity below!

MEMBER BENEFIT PARTNER MESSAGE
•TMP Energy Solutions: Another Way to Save On Your Energy Bills!

REAL ESTATE FOR SALE OR LEASE
•Interested in acquiring or leasing a property?  See below!

A SPECIAL MESSAGE FROM BELLOMO FUELS
•Serving New Jersey since 1910 -- Over 100 years of supplying gasoline retailers like YOU!

POLITICAL PARTICIPATON: THE NJGCA PAC
•Participate in the NJGCA PAC today and help us keep our Agenda rolling in Trenton!

THE MEMBER TOOL BOX
•On the NJGCA Homepage
•Know your Territory Manager!

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

REPEAT MESSAGE NOT TO BE TAKEN LIGHTLY!  ….plus…. FUEL MARKET CONDITIONS AND MEETINGS THIS NOVEMBER

URGENT WARNING
‘BATH SALTS’ BANNED,
Sale made a felony as of May 8th

“We’ve just learned that the Attorney General and the Acting Director of the Division of Consumer Affairs have announced that the manufacture, distribution, sale, and possession of designer drugs labeled as “bath salts” will now be a third degree crime.  Violators may be subject to a fine of up to $25,000 and imprisonment for a three to five-year term.” –NJGCA Wildfire Alert, April 29, 2011

Does the quoted paragraph above look familiar?  It should.  I excerpted the paragraph above from a Wildfire Alert we sent out to NJGCA members on April 29th, warning them about possible legal ramifications if they continued to sell ‘Bath Salts’ to the public.  While many of you reading this for the first time may be wondering “why is Sal bothering me with this again?  Who cares”?

Well first is the fact that many gas stations and especially convenience stores sell these products innocently to be used for a legally intended use.  ‘Bath Salts’ sales are so pervasive at these retail establishments that Attorney General Paula Dow has targeted gas stations and convenience stores to be raided ever since the ban was first put in place 3 months ago.

The ban came about because ‘Bath Salts’ are dangerous to sell to the wrong person for the wrong use. They contain mephedrone or methylenedioxpyrovalerone, which are chemicals used to make substances which mimic methamphetamines.  In fact, many of these were concocted as ‘designer drugs’ and are frequently marketed as ‘cocaine substitutes’.

Unfortunately, there are some c-store and service station owners out there who did not heed this urgent alarm.  Also unfortunate is the fact that they are not NJGCA Members who don’t receive my emails and warnings.   Several arrests were made in the last 2 weeks including a gas station owner in one location, and an employee in another. I often say that “Too Many Retailers Wait Until The Train Is Coming Thru Their Front Door Before They Call To Join NJGCA!”    Failing to stay on top of new circumstances and regulatory conditions around the state – which we work hard to keep you informed of – will ultimately cost you.

However, the Attorney General’s announcement and our Wildfire Alert wasn’t the first time we brought this matter to your attention.  In fact, we also warned you that the Legislature was seeking to take action on this matter in the March 18th edition of the Road Warrior early this year after a young student was killed by someone high on these substances.  Since the legislative process takes time, the Attorney General’s Office began their own initiative to go after merchants who sold these designer ‘Bath Salts’ drugs while the bill was working its way into becoming law.

It is now the end of August and Governor Christie just signed S2829 into law on Tuesday, which creates a separate statute in the NJ Criminal Code, allowing law enforcement to prevent the sale, distribution and possession of "Bath Salts."

Since the news broke earlier this week, we’ve received a number of phone calls from members asking us to list the substances – as well as some of the brand names they are sold under – so you can be on the lookout for them.  The new law makes the following chemicals Schedule I Controlled Dangerous Substances (CDS):

• 3,4 – Methylenedioxypyrovalerone (MDPV)
• 4 – Methylmethcathinone (Mephedrone, 4-MMC)
• 3,4 – Methylenedioxymethcathinone (Methylone, MDMC)
• 4 – Fluoromethcathinone (Flephedrone, 4-FMC)
• 3 – Fluoromethcathinone (3-FMC)
• 4 – Methoxymethcathinone (Methedrone, bk-PMMA, PMMC)

Furthermore, these designer drugs are marketed under brand names such as “Energizing Aromatherapy,” “Down2Earth White Horse,” “Kamikaze,” “Ivory Wave,” “Purple Wave,” “Red Dove,” “Blue Silk,” and “Vanilla Sky,” although there are many others.

You can click HERE to read our original Wildfire Alert or click HERE to read an article from earlier this week outlining the details of the bill signed into law by Governor Christie.  You may also read a few of the press releases sent out after the bill signing by legislators who sponsored the legislation by clicking HERE and HERE.

However, as a final thought on this subject, consider how ‘fortunate’ some of you are who did heed my original warning and didn’t get fined or arrested for selling these products.  I’ve already heard from a few station owners thanking me for the warning.  Do you think those retailers that are now facing serious charges wish they were NJGCA members too, and able to receive my weekly emails?  If only those owners were also members then they too would have been warned at the same time you were informed about regulatory events down in Trenton.

As I’ve said before, “Membership in a Strong Trade Association is one of the best investments a small business can make!”

The market madness continues unabated as we learn that gasoline consumption in July has hit a 10 year low and the condition of the economy continues to deteriorate. What’s more, gasoline demand was down last week by 4.2% compared with a year ago.  I’ve been saying all along that demand isn’t there and that prices would begin to fall as consumption weakens. 

Yet, this situation also brings new problems that you have to think long and hard about.  As the price drops – and demand weakens overall – you’re competing for the same portion of an ever-shrinking pie.  That means your margins and profits are also eroding while demand volume shrinks.  How do you keep your doors open in such a situation when both margins and volume are down?  That’s not an easy question to answer, but it suffices to say that you can’t keep everything at status quo and then act surprised when you come up short.  Something MUST give.

Which leads me to…..What must be done to keep your doors open while the roller coaster rolls on?

When I was in business, I thought I ran a tight ship and kept great records of all my business transactions.  I know many of you must feel the same way.  But what if we’re wrong and something more can be done to help us make our businesses more profitable?  Wouldn’t you want to know how to take advantage of such a tool?

Two weeks ago, my Road Warrior message outlined why calibrating your pumps shouldn’t be ignored.  The simple truth is that we are finding that a very large percentage of gasoline retailers are giving away gasoline which cuts into business-sustaining profits.  The ethanol in gasoline all but ensures this phenomenon, and it only gets worse as time goes on. 

However, what if I were to tell you that your own underground storage tanks could also be working against you and misrepresenting not only what you pumped into your customer’s cars, but how much inventory you currently have in the ground?  If you think that sounds too far-fetched, you wouldn’t be the only one – but I’ve seen it with my own eyes, and I recognize how much money you are losing, and it scares the daylights out of me!

You need to know the full story behind this and what you must do to stop giving away product and profits.  For that reason, we’re going to hold two meetings in November to educate you on this.  We’ve set aside November 8th and 9th (the two days after Election Day) to host these meetings.  One meeting will be held in Northern New Jersey (11/8) and the other in Southern New Jersey (11/9).  We hope to have all the logistics nailed down soon, but for right now, all you need to know is that these meetings will be held and you should mark your calendar to attend! 

What’s more, this meeting will not be for gasoline retailers only, but for all c-store, repair shops, and station owners to attend. Because gasoline retailers and auto repair shops are being targeted for labor law enforcement actions, NJGCA has invited the US Department of Labor (USDOL) to instruct a seminar to help keep you out of big time trouble.  We have also invited the NJ Department of Environmental Protection (NJDEP) to come and speak directly to you.

While everyone should be there to hear what USDOL and NJDEP have to say, it is especially important for former Shell lessees who recently purchased their locations to attend, as well as Exxon Lessees who soon will have the opportunity to purchase their properties.  That’s because former franchisees who leased their location typically had their environmental obligations handled by their oil company.  Once you own your location, however, you're now going to need to do things a bit differently and it is your responsibility to make sure your station is in compliance.

Several years ago we had an all-day NJDEP event that helped educate a number of our members. It was very successful, and members called to thank us for months after NJDEP visited them for routine inspections.  Many dealers had already been fined more than $50,000 which is what prompted me to hold these valuable seminars back in 2008.  But that doesn’t mean you couldn’t use a refresher or learn about any changes that have been put into place since then, and I will encourage you to participate in these meetings. 

So whether you are a veteran station owner or a lessee who just purchased your location, you should be in attendance at our November meetings.  Mark you calendars!  You don’t want to miss this!

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

NEWS AROUND THE STATE

8/25/2011:
Governor expected to decide soon on ‘fracking’ ban
The Legislature has passed a bill that would ban the practice known gas ‘fracking’ in New Jersey.  Fracking, or hydraulic fracturing, is a drilling process used to extract natural gas.  The measure is currently before Governor Christie, who will either sign the ban, veto the proposal, or conditionally veto the measure with recommended changes and send it back to the legislature.  Experts state that whatever decision the Governor makes, it will be largely symbolic since there isn’t enough natural gas under New Jersey to conduct hydraulic fracturing.

8/24/2011:
Motorists drove the fewest miles since 2004
A new report by the Federal Highway Administration states that American drivers logged fewer miles through June 30, dropping overall roadway use to the lowest level since 2004.  Analysts believe that as motorists drive less, they may be more likely to hold onto older vehicles.  The larger the number of older vehicles on the road will mean drivers will have to take more effort to maintain their vehicles for continued use.  To read the full study, click HERE

8/23/2011:
Ford, Toyota forge collaboration on hybrid trucks
As automakers seek to economically and quickly boost fuel efficiency, two of the world’s largest automakers have joined forces to co-develop a gas-electric hybrid system for rear-drive pickup trucks and SUVs. Rivals Ford Motor Company and Toyota Motor Corporation will cooperate to put these improved fuel-efficient products on the market more quickly by sharing powertrains, but not underpinnings or platforms.  The two competitors are pursuing this collaboration in light of increasing pressure from the federal government to improve fuel consumption by 2025.  With automakers increasing the application of hybrid technology to other market segments, will your technicians be prepared to service your customers’ vehicles?

8/23/2011:
Rare earthquake rattles the Garden State and the region
Earlier this week, New Jersey residents were astonished to feel the effects of a rare East Coast earthquake.  The quake’s epicenter was in Virginia and measured 5.8 on the magnitude scale, prompting many individuals to temporarily evacuate office buildings and homes.  While there are fault lines throughout the East Coast, none are on the same scale or frequency as those in California and the western United States. 

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.