September 19, 2008

GREETINGS AND SAL-UTATIONS!

Dear NJGCA Member:

PROTECTING RETAILERS, FIGHTING BIG OIL 

When I started out as a retailer in 1978, I leased an Exxon location on a busy highway in Bergen County.  I worked hard, my business grew, and after years running a successful shop, I hoped to own the location one day.

However, as a lessee, I was under the thumb of Big Oil - who didn’t hesitate to push me out the door when a bigger opportunity came along.

Well, it seems that history repeats itself.

As you know, ExxonMobil has recently announced that it would be divesting its assets in the retail market.  Details are sketchy at this point, but we know for certain that ExxonMobil will not sell off locations one by one to the dealers that operate them now– but rather package them in large numbers by geographic region and sell them off to distributors.

This scenario has essentially marginalized current Exxon lessees and may rob dealers from a future opportunity to buy their locations.

In the past, similar divestitures have driven independent businesses from the market when the new owners/distributors hiked up delivery prices and rents.  Soon afterwards those small business owners folded up shop and handed over their keys.

To prevent this from happening again, NJGCA held an important meeting with Exxon Lessee Dealers in Edison.  Over 120 retailers show up – both NJGCA members and non-members – and we laid out the case to organize and fight ExxonMobil.

Much was discussed, but everyone understood the ultimate goals: either to force a “first right of refusal” and allow members to buy their locations from ExxonMobil or to establish a framework which would allow for favorable conditions should those locations are obtained by their new owners.

Peter Gunst, a respected attorney with years of experience in Petroleum Marketing Practices Act (PMPA) litigation, participated in our discussion to advise us.  Ralph Bombardiere, Executive Director of the NY State Association of Service Stations, also attended and shared a similar situation that is currently unfolding in New York State.  I have also been working with other associations in Virginia, Maryland, Delaware, and Connecticut to add further strength to bear our coalition.

Several strategies were discussed including legal action and legislation that can be passed to prevent Exxon from forcing a bad deal on their dealers.  However, I am unable to help these dealers unless they agree to band together to fight.  At the conclusion of our meeting it became clear that all in attendance with the exception of one dealer were ready to fight.
As I have stated before, when we have strength in numbers, there is almost nothing that small business owners cannot achieve!  NJGCA’s success is proof of that.

I cannot promise that these dealers will be successful and ExxonMobil will allow them the buy their locations.  But this I CAN guarantee: Doing NOTHING will assuredly mean we get NOTHING - and those Exxon Lessees will have their futures dictated for them.

However, many of you reading this are probably thinking, “Sal, I’m not an Exxon Lessee, what do I care?”

But the truth is, what is true for these lessees today, may be true for those who sell Shell, BP, or other brands tomorrow.

That means that ALL small business owners must band together to fight Big Oil.  I need an army at my back when I go to Trenton or take on lobbyists who would undermine YOUR small business.

Thanks for reading.  See you next week!

Regards,
Sal Risalvato
Executive Director

IN THIS WEEK’S NJGCA ROAD WARRIOR:

UPCOMING EVENTS

•WMDA Annual Convention & Mega Show

NEWS AROUND THE STATE

•Speaker of the Assembly seeks economic summit
•NJ population shrinks, but gains 'better educated' residents
•Corzine renews objection to off-shore drilling
•NJGCA in the News: Risalvato on Hurricane Ike & gas prices


UPCOMING EVENTS

SEE OUR UPDATED CALENDAR FOR ALL COMING NJGCA EVENTS. CLICK HERE

WMDA 35TH ANNUAL COVENTION & MEGA SHOW

The Washington, Maryland, Delaware Service Station and Automotive Repair Association (WMDA) is hosting the 35th Annual Convention & Mega Show in Ocean City, Maryland.  The convention will take place over three days at the Ocean City Convention Center, staring on October 2nd thru October 4th.

The show is tailored for service stations, convenience stores, repair shops, car washes, tire dealers, jobbers, co-branded stations, and auto parts stores.

All owners, managers, technicians, and others are welcome.

The show will feature:
-Marketers from all over the automotive industry
-Informative seminars
-Live product demonstrations
-Opportunities to learn about the latest products and technologies

For more information visit: http://www.wmda.net/special.html

For schedules and registration visit: http://www.wmda.net/08MegaSched-Regis.pdf 

NEWS AROUND THE STATE

9/18/2008:
Speaker of the Assembly seeks economic summit
In light of recent financial turmoil, Assembly Speaker Joe Roberts pushed this week for an emergency economic summit to explore what can be done to minimize any Wall Street fallout on state residents.

9/17/2008:
NJ population shrinks, but gains 'better educated' residents
Follow a near decade-long trend, New Jersey continues to lose residents year after year, as lower income residents flee due to higher taxes and affordability.  But a new report illustrates that even as the Garden State sheds residents, those who are moving to New Jersey tend to be better educated and earn higher salaries.

9/16/2008:
Corzine renews objection to off-shore drilling
As Congress debated a new, compromise bill on off-shore drilling, Governor Corzine reiterated his opposition to any proposal which would open up drilling off the mid-Atlantic coast.

9/13/2008:
NJGCA in the News: Risalvato on Hurricane Ike & gas prices
As Hurricane Ike battered the Texas coast, Executive Director Sal Risalvato spoke with CBS News regarding a possible spike in gas prices as refineries shut down for the storm.