Road Warrior Newsletter

October 10, 2008


Dear NJGCA Member:


You may remember back in June there was an attempt to repeal the law that prohibits “Below Cost Selling” of motor fuels.  NJGCA and our friends at the Fuel Merchants Association of New Jersey acted quickly and asked you to show up in Trenton to express your displeasure at this attempt.  Recognizing the harm that this legislation would cause independent gasoline retailers, the bill’s sponsor, Assemblyman Burzichelli assured us that he wouldn’t take any action to move the bill without further input from us to produce a revised bill.

We learned last week that the Assemblyman has “reconsidered” his pledge to work with us. He intends to not only re-introduce the measure, but amend it to allow for promotional giveaways – which have also been banned in New Jersey.

We met with Assemblyman Burizchelli this past Monday.  He claims his reconsideration is justified because he feels consumers are being taken advantage of in the market.  He cites “misleading” signage, discrepancies in gas prices from one street to the next, and retailers “deceptive behavior” in implementing Cash/Credit Pricing as evidence.

We explained to the Assemblyman why Zone Pricing should be eliminated to combat price discrepancies. We also explained the valid reasons behind Cash/Credit Pricing, and also how we have worked with Weights & Measures and NJGCA members to educate them on proper display of signs.

Assemblyman Burizchelli cites the needs of special interest “Big Box” marketers who wish to use gasoline as a promotion, effectively harming and eliminating small-business retailers.  Assemblyman Burizchelli believes that consumers will benefit even if competition in the marketplace is eventually eliminated.  Please call Assemblyman Burizchelli and let him know how his proposal will harm you:
(856) 251-9801 or (856) 455-1011.

We will update you with more information as it becomes available.

It is no secret that the markets are very volatile right now.  But even as we focus our attention on Wall Street, we shouldn’t lose sight of what the price of gas is doing on Main Street:
it is falling!

How can this be?  The simple answer is that demand for gasoline is experiencing a dramatic decline.

Looking at the most recent figures, the nation currently has 18 million fewer barrels of crude oil on hand today than we did at this time last year.  Yet, we have 3 days MORE supply of crude stored than last year at this time.

The same scenario exists for gasoline and diesel fuel. Nationwide inventories reflect fewer barrels in storage, yet the projected days of supply is virtually identical.

Translation: On Hand Supply is down + On Hand Supply will last longer = a drop in demand!

As demand continues to drop, it will mean that all retailers will continue to fight for an even SMALLER piece of the pie!

What should you be doing in this kind of environment?  Take advantage of the profit margin that you are experiencing and KEEP IT!  Do the math.  You make far greater profits when you have a bigger margin and less volume.   DO NOT BE THE FIRST TO LOWER YOUR PRICE!  You can always lower your price later and lost volume will come back easily.  You know that is true. 

See you next week!

Sal Risalvato
Executive Director



•Can you take advantage of these offers?


•Corzine: Economic stimulus plan coming
•Senate race focuses on health-care reform
•South Jersey LNG terminal proposal killed
•Toll Hike vote expected immediately Friday



Due to the current credit crunch in the economy, many of you are wondering if there is anything that you can do to improve your credit position.

NJGCA may have a solution to your credit concerns.  We are working with the NCS Group.  NCS offers credit repair, restoration and education through their exclusive Multi-Phase System™.


Many owners are looking at ways to expand the services they offer to better attract customers.

One way to do this is by providing motorists with 24-hour access to coin-operated vacuums and tire-inflation devices.

Service Station Vending Equipment, Inc (SSVE) can help you obtain externally visible coin counters.  SSVE offers 24 hour service, no contract, no complicated commissions, and payment made to you at time of collection – you don’t even have to wait for a check!

NJGCA believes SSVE can benefit your patrons and your bottom line.


To take advantage of either offer or get more information, please contact NJGCA Membership Director Phil Apruzzi at 973-376-0066 x209.


Corzine: Economic stimulus plan coming
Noting the affect the current Wall Street credit crunch will have on New Jersey’s future finances, Governor Corzine will propose a broad economic stimulus package to the Legislature next Thursday.  Expected in the measure will be business incentives, a program designed to ward off home foreclosures, and new public works projects.

Senate race focuses on health-care reform
With 28% of likely voters citing healthcare reform as a key election issue, U.S. Senate candidates Frank Lautenberg and Dick Zimmer have both outlined plans to help reduce healthcare costs through different proposals.  Poll participants claim that wages have not kept pace with record increases in insurance premiums. 

South Jersey LNG terminal proposal killed
After a series of set backs in court and changes in the energy market, BP has decided to not build a $700 million liquefied natural gas terminal along the Delaware River.  The measure was slated to produce thousands of jobs to boosted the South Jersey economy.

Toll Hike vote expected immediately Friday
The proposal to raise tolls on the Garden State Parkway and New Jersey Turnpike is expected to be voted on by state authorities immediately after the last public hearing is concluded Friday at noon. The $7 billion proposal includes widening the Parkway, widening portions of the Turnpike, and will preserve $1.25 billion toward developing a second Hudson River rail tunnel.


Serving the small businesses that serve the motorist