March 4, 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!
•Below Cost Selling, Rising Gas Prices, and Protecting Your Margin!!

NEWS AROUND THE STATE
•Fight for toll collectors jobs heating up
•Support grows to cut funding for specific state programs
•New Jersey public state workers in a rush to retire
•Proposed E15 adoption blocked in Congress

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

TRAINING CLASS SCHEDULE
•Let us know what your education needs are today!

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! 

BELOW COST SELLING, RISING GAS PRICES, AND PROTECTING YOUR MARGIN

BARNEGAT, NJ --- Greetings to you from historic Barnegat, first discovered and named by famed English explorer Henry Hudson, and site of one of the last battles of the American Revolution!

While opening my weekly message in such a fashion seems a bit odd, I want to address up front what some of you already know.  Over the last two months, I’ve been battling a serious health issue that has both limited my availability and hampered my capacity to work out of our Springfield headquarters.  While I don’t want to get into any details, I do wish to acknowledge that many of you have reached out to me on association business and I have not been as responsive as I normally would be.  That’s because I’m under strict orders to keep completely off of my feet, and when I can, work from my desk at home in Barnegat.  My health issues are my own fault, and at some point I may include a piece in my weekly message warning of the dangers of diabetes.  It is more common than you may think.

Though trying to conduct Association business from home is both frustrating and limiting, I can’t ignore these health issues or the circumstances I now find myself in.  Nevertheless, I still communicate with the NJGCA Staff, am aware of everything that is going on, and address whatever needs my immediate attention.  They have my full confidences to run our daily operations while I tend to my health, and they should have yours as well.  While I hope to be back behind my desk soon, I thank you for your patience and understanding while I recover.

The issue of Below Cost Selling is once again on the front burner and in need of your attention. Sponsored by Assemblywoman Riley, this new bill is now packaged as a ‘Rebate Bill’ that seeks to permit Below Cost Selling through alternative means.  As you know, this proposal was originally up in committee hearing last October and took us completely by surprise.  However, thanks to a combined effort with our friends at the Fuel Merchants Association of New Jersey (FMANJ), this bill was taken off an Assembly Committee list in hopes of hashing out a compromise. 

Since we need to find a resolution to this before it reappears on a Committee agenda in the near future, NJGCA President Tim Arata, Vice-President Kashmir Gill, and NJGCA Staffers Nick De Palma and Eric Blomgren participated in a meeting yesterday alongside our FMANJ friends to discuss our collective concerns.  Also in attendance were our opponents who are trying to push the bill through the Legislature (to benefit grocery stores, food-marts, and large-convenience store chains) and the Chief of Staff for Assemblywoman Riley, who is the prime sponsor of the bill.

I must emphasize that our friends at FMANJ have been an enormous help in this process.  My counterpart at FMANJ, Eric Degesaro has great political skills and has been debating toe to toe with our opponents brilliantly.  His assistant Kat Madaras has done a great job coordinating the negotiation process between our two organizations and our opponents; who are represented by the NJ Food Council.  You may recognize that our opponents on this issue are the very same organization that is standing shoulder to shoulder with us to keep internet lottery from becoming a reality.  More on that issue in upcoming weeks.

As we have discussed in earlier editions of the Road Warrior, unlike the bill we helped defeat in 2008, this Rebate Bill would essentially permit retailers to use promotions and incentive-giveaways to sell gasoline below cost.  They will be able to do this by allowing big-box outfits to offer a discount or coupon to a customer on one item, then ‘bundle’ the items together and sell them at an overall lower cost.  So, for example, they will offer their grocery store customers a coupon cutting 10¢ off a gallon of gasoline every time they spend $100 in their stores.  Or they can offer every customer a 50¢ coupon off a coffee or soda inside their convenience store when customers buy gas at their pumps.

Can you see a problem with this?  Is it hard to imagine how such a move could undercut your ability to compete in the market when they can absorb their losses through huge profit-creating products and you are limited to a 10¢ a gallon profit per gallon?

While I can’t divulge exactly what transpired at the moment, it’s safe to say that things will get awfully dicey before they’re concluded.  We’ve got a lot of work to do to reach an agreement, but at least the process is continuing and our dialogue is moving ahead. 

However, keep in mind that if this bill makes it to Committee without any substantial changes, I’m going to need you in Trenton to flood the State House if necessary --- So stay alert for any Wildfire Alert messages!  Rising Prices at the pump will have the public and legislature screaming for relief, and trust me, legislators will jump on board with anything that benefits the motorist.  The timing couldn’t be worse.

I’m sure you’ve noticed by now that the average price of gasoline has jumped 17 cents in the last week.  What’s more, I’m also sure your customers have also noticed and it’s getting the attention of the full attention of the media.  When the price rises above $3.00 a gallon and your credit card fees are eating deep into your profits, it’s important to make sure you do all you can to protect your margins.  If you haven’t done so already, you should be implementing Cash/Credit Pricing to shield your bottom line.  If you haven’t done so already, please click HERE to review an earlier edition of the Road Warrior on how to correctly post your Cash/Credit prices and what you need to do to stay in compliance. 

A few weeks ago, we told you about reducing your energy costs with TMP Energy Solutions and the kinds of benefits they can offer you as an NJGCA Member Benefit Partner.  Since we made this announcement, Membership Director Phil Apruzzi has been getting a number of members interested in their services.  So far we have signed up a few dozen members looking to save money on their electric and/or natural gas utility bills.  The feedback has been overwhelmingly responsive, and with the need to save money more important than ever, we strongly believe this is one program you must take advantage of. 

You can read more about TMP and their program by clicking HERE, then please contact Phil at 973-376-0066 to get your FREE energy cost savings analysis TODAY!

Lastly, we sent out a special Events & Announcements earlier this week with information from our friends at AASP/NJ about a fatal hit & run that took place in Newark.  If you haven’t read it yet, please click HERE to review the details and keep a look out for the vehicle described in the notice.

Thanks for listening - See you next week!

Regards,

Sal Risalvato
Executive Director

NEWS AROUND THE STATE

3/3/2011:
Fight for toll collectors jobs heating up
As each side points fingers at the other and accusations of misleading the public intensifies, the battle between the toll collectors union and the Turnpike Authority has debate for concessions rages on.  The contract between the union and the authority will expire on June 30th.  Among the issues being contested are a wage and a work force reduction. 

3/3/2011:
Support grows to cut funding for specific state programs
As compared to last year, a larger number of New Jersey residents support cutting funding back on many state programs.  According to a poll released this week, a smaller number of voters have expressed opposition to many cuts, illustrating growing support to hold the line on taxes.

2/28/2011:
New Jersey public state workers in a rush to retire
As state lawmakers debate much needed healthcare and pension reforms to balance next year’s budget and reduce overall spending, over 20,000 police officers, firefighters, teachers and other public employees have filed their retirement papers to avoid benefit cuts.  This represents a 60% jump from only two years ago as workers try to escape paying more than the current 1.5% of their salaries toward their healthcare premiums.

2/19/2011:
Proposed E15 adoption blocked in Congress
The U. S. House of Representatives voted last month to prevent the EPA’s adoption of a higher 15% blend of ethanol in gasoline.  While the EPA has stated that E15 is safe to use for vehicles manufactured after the 2001 model year, there is still concern that cars produced before 2001 maybe harmed by a 50% ethanol increase in motor fuel.  Lawmakers fear that permitting the use of E15 may harm unknowing motorists with older vehicles that may not know the difference between E10 and E15.

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