June 17, 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!
•Fighting Below Cost Selling --- And Turn OFF Your Cell Phones!

NEWS AROUND THE STATE
•NJGCA in the News: Risalvato criticizes online lottery ticket sale proposal
•Governor, top lawmakers reach agreement on pension reform
•New Jersey offshore wind farm production in strong demand
•Alternative Energy: Ford seeks to triple hybrid and electric vehicle production by 2013

SNAPSHOTS
•From June 16, 2011 when NJGCA testified before the Assembly Transportation Committee

MEMBER BENEFIT PARTNER MESSAGE
•TMP: Residential Energy Solutions now AVAILABLE!! 

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!

TRAINING CLASS SCHEDULE
•Interested in a class?! See Below!

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! 

FIGHTING BELOW COST SELLING --- AND TURN OFF YOUR CELL PHONES

NJGCA Executive Director Sal Risalvato testifies before the Assembly Transportation Committee against A-2932.  Also testifying are Tim Arata, NJGCA President, Kashmir Gill, NJGCA Vice President, and station owner Bashar Massey. 

To defend your small business against harm is to be eternally vigilant.  Unfortunately, nowhere is that statement more valid than when it comes to the continuing threat of Below Cost Selling. 

Earlier this week we sent out a series of Wildfire Alerts to warn you that the Assembly Transportation committee was going to be holding hearings on A-2932, a Below Cost Selling bill.  While many of you think that’s a typo, let me assure it is not.  Yes, a few weeks ago we defended retailers from a similar measure that was presented as a ‘Rebate Bill’…but this is yet ANOTHER Below Cost Selling proposal!

As I’ve said in the past, there are many different Below Cost Selling bills being considered in Trenton – further proof that bad ideas just will not die!  All of these proposals are a variation on a common theme, they are all harmful and we must work hard to defend against all of them.

The problem of Below Cost Selling has the potential to pull the rug right out from under your business.  If large, big-box retailers are permitted to sell gasoline below cost – and make up for that shortfall by relying on more profitable products to survive – it would put you out of business in only a couple of weeks. Lawmakers in the 1930s knew that such a scenario would be predatory in nature, and in a move to protect small business owners, passed a law in 1938 to prevent this from happening.  In essence, this law created a ‘floor’ cost, shielding the market from any competitor that would game the system by exploiting a ‘loss-leader’ like gasoline to attract customers.  Though some would say that this would seemingly violate time-honored free market principles, the simple fact is that gasoline is a necessity and a regulated commodity much in the same vein as milk.  As a matter of public policy that ‘loss-leaders’ aren’t used to undermine the fiscal health of businesses that sell gasoline and keep it widely accessible.

In Trenton yesterday, NJGCA and our allies at the Fuel Merchants Association of New Jersey (FMANJ) appeared before the Committee to make just this argument.  In fact, in my characteristically dramatic delivery style, I even went so far as to say retailers accept how tough the market is but asked lawmakers to not give our big-box competitors a gun by which to kill New Jersey’s small business retailer competitors.  Thankfully, my colleague from FMANJ, Eric DeGesero, and I were able to make our case before Committee members, but the battle is far from over. 

Supporters of the bill, such as Costco who testified on behalf of the measure, state that they aren’t seeking an upper hand that would permit them to prey on other businesses.  Instead, they say that they are merely looking to update this ‘antiquated’ law and ‘meet the price’ of competitors during volatile market conditions.  For example if Costco were to get one load of gasoline a day at a higher price, but you sell far lower volume and got one load early in the week at a lower delivery price, they want the right to lower their price to meet yours and compete for customers.  The obvious problem with that is that how can you prove that they are lowering their price merely to meet yours?  Supporters say that there is an ‘intent’ provision in the bill that prevents them from ‘beating’ competitor prices and allows them to only match.  Can you imagine the regulatory and logistical problem in trying to lay out a case for ‘intent’?  It would be a nightmare to prove and show cause – which is exactly what they want!

An unspoken, but very real, problem in all of this is that that state has a very large problem in how it defines a ‘cost’ to retailers.  The statutory language on the books says that your overhead, taxes, delivery costs, and other variables are to be included in the definition of ‘cost’ to retailers.  However, a court case in the late 1950s said that this language was too vague and wouldn’t permit such a formulation.  Thanks to that decision, the new threshold for what is below cost became only the invoice price, severely limiting what retailer ‘costs’ are and how to determine where the threshold is to sell below cost.  This obviously needs to be amended!  Eric DeGesero and I have been pushing for just such a revision, but the Legislature is distracted by the billion+ dollar shortfall they’re currently grappling with before the end of June, not to mention the climate for asking for such changes is not good.

Ultimately, the Committee held a hearing on the bill and Chairman Wisniewski opted not to take a vote because the bill was extremely controversial.  Therefore, the bill will not advance – yet!  I consider this a small victory since we were able to bring our message to Legislators and hopefully convince a few of them of how harmful and burdensome this would be if enacted into law.  However, that doesn’t mean that the battle is done and we can relax.  Far from it.  This is an issue that will come back – as it has continually – to threaten the stability of your small business.  In fact, while I doubt we will see this bill on the Committee agenda in the next few months due to the budget and summer recess, I wouldn’t be surprised if the Legislature gives it another look after the elections in the fall during the lame duck session, or worse, in the fall before elections in order to claim victory in the fight against high gas prices.

On a related note, I want to convey a message that was delivered by Vice-Chairwoman Linda Stender.  The Assemblywoman, after asking a series of questions, offered a piece of constructive feedback to retailers.  She made a personal appeal asking our members – and their employees – to stop using their cell phones while working at the pumps.  When customers drive up to the pump and ask for service, they are patronizing your establishment.  As such, they deserve your undivided attention.  Talking on a cell phone, while seemingly innocent, is not only rude, but also unsafe.  When you or your employees are carrying on a separate conversation, you (or they) are distracted and taking attention away from the task at hand.  This is unsafe and means that if a problem should arise, you may not respond as quickly as you would if you weren’t trying to do two things at once.  I promised Assemblywoman Stender that my weekly message would include her request, so please put the cell phone down, give your patrons the respect they are due, and prevent any safety problems by giving your customers your undivided attention.

Lastly, I want to thank all those retailers who came out to support us yesterday.  Those who showed up weren’t intimidated by the union demonstration taking place outside the State House and contributed to our success Thursday.  However, I am disappointed that more members didn’t show up to participate.  While I know it is difficult to get away from your business for a day to help us in Trenton, I cannot underscore how important it is for you to chip in when we push the panic button.  Having about 30 members sitting behind me as I testified, (I referred to them several times in my testimony) was extremely helpful, making the committee understand just how important this bill is to us.   However, there were another 50 seats in the committee room that were noticeably empty.  While I was very happy to have participants help us deliver our message to the Assembly Transportation Committee members, I wasn’t pleased by the light turn out.  Next time we sent out a Wildfire Alert, I hope you’ll consider this and decide not to sit on the sidelines.

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

NEWS AROUND THE STATE

6/16/2011:
NJGCA in the News: Risalvato criticizes online lottery ticket sale proposal 
Executive Director Sal Risalvato was recently quoted in a Star-Ledger piece on Assemblywoman Quijano’s internet lottery ticket bill.  Sal stated that any sale of lottery tickets online will harm convenience stores that depend on the foot-traffic from ticket sales.  Click above to read more on what Sal had to say.

6/16/2011:
Governor, top lawmakers reach agreement on pension reform
After months of negotiations, Governor Christie, Senate President Sweeney, and Assembly Speaker Oliver have reached an agreement to roll back pension and health care benefits for public employees. In a sign of how distressed the under-funded system has become, all three leaders put partisan politics aside to address this looming problem.  The proposal, which still needs to be approved by both houses of the Legislature, would force public employees to pay more for their pension and healthcare benefits, while pushing back their retirement age.  The Christie Administration predicts this will create an immediate $300 million savings for the next fiscal year. The measure is being strongly opposed by state public employee unions.

6/11/2011:
New Jersey offshore wind farm production in strong demand
A number of energy companies are seeking to acquire rights to develop wind farms off the coast of New Jersey.  The eleven interested companies hope to gain these rights in a series of parcels 8 miles off the coast in federally controlled waters.  If approved, these companies will erect wind turbines to generate electricity in a 550-square mile zone roughly off the coast of Barnegat Bay. 

6/10/2011:
Alternative Energy: Ford seeks to triple hybrid and electric vehicle production by 2013
Ford Motor Company aims to triple hybrid and electric vehicle production to 100,000 cars by 2013.  Currently Ford produces 35,000 hybrid vehicles a year, which include the Ford Escape SUV, Ford Fusion sedan and Lincoln MKZ luxury sedan.  In addition, Ford hopes to offer a domestic version of its European C-Max crossover vehicle, exclusively in hybrid and all-electric propulsion variants, next year.  Click above to read more on this topic.

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

SNAPSHOTS

...From Thursday, June 16, 2011 as NJGCA and FMANJ testify before the Assembly Transportation Committee to oppose A-2932, a Below Cost Selling bill. 

Members of the Assembly Transportation Committee listen to testimony from NJGCA and FMANJ during Thursday's hearing.

NJGCA and FMANJ Members assembled in the Committee chambers, listening to the proceedings and testimony.

FMANJ Executive Vice President, Eric DeGesero, speaks with Sal and NJGCA Government Affairs Assistant, Eric Blomgren after the hearing concluded on Thursday.

Sitting in his wheelchair, Sal speaks to all the retailers and distributors who turned out to oppose A-2932 after the hearing ends.  Sal made a point a stating that the bill is not dead and it is likely to be on a Committee agenda sometime in the fall.

Assembled station dealers and distributors pose with Sal Risalvato and Eric Blomgren after the Committee hearing. 

MEMBER BENEFIT PARTNER MESSAGE: 
TMP Energy Solutions Goes Residential!

NJGCA recently introduced you to a major solution to your energy bill for your business.  Through deregulation, you are given the option to choose your energy supplier. No longer are you locked into getting your electricity from one of New Jersey’s major energy distributors.

TMP Energy Solutions may help your business achieve cost reduction due to the deregulation of electricity generation. We have seen dramatic savings by several members who have taken advantage of this program for their businesses. Now TMP Energy Solutions has gone a step further in offering NJGCA members’ savings on their residential electric rates. Yes, that’s right. You may be able to save on your home’s electric bills too!

Here is what you need to do to verify your residential savings and to signup for TMP’s offering.
1. Have at least one of your latest electricity bills. Two would be great.
2. Call me at 973-376-0066.
3. I will do an online analysis of your bill to verify your savings.
4. If you agree to the Residential offering, we will work with you to complete the application.

TMP Energy has provided a residential energy supplier, Champion Energy, to offer NJGCA members the option to purchase their electricity for their home. The term of the Residential Agreement contract is for 12 months at the electric rate on the day your contract is signed. If you decide to end the contract, there is an early termination fee of $10 per month remaining in the contract.

NJGCA now provides you another way to save on your bottom line.  Additionally, any residuals dollars NJGCA receives from TMP Energy Solutions will go towards the NJGCA Scholarship Fund. You save and NJGCA funds the scholarship program for member children going onto institutions of higher learning. Let’s hear from you.

Oh, and don’t forget. If you are also interested in saving on your electric and natural gas bills for your business, all you need do is send copies of your last 3 energy bills to me by mail or fax. I’ll do the rest and let you know what your savings might be.
You have so much to gain and nothing to lose.

-Phil Apruzzi, Director of Membership
66 Morris Ave.
Springfield, NJ 07081
Phone: 973-376-0066
Fax: 973-3760766