Issue link: https://read.dmtmag.com/i/626797
27 Oil Prophets Recently I had a conversation with one of my board members. A second- generation marketer who purchased the family business about 3 years ago. He operates five unbranded retail locations in Tuscaloosa, Alabama. Now, some may consider Tuscaloosa to be the epicenter of college football, but for retail c-store locations it is a medium sized market at best and his volume reflects his position as a smaller company. At any rate, our conversation quickly turned to the new laws on credit card processing and the upcoming deadlines to upgrade equipment; specifically the 2017 deadline for card readers at the pump. My member shrugged his shoulders and shook his head as he informed me his equipment company estimated the cost for the upgrade would approach $300,000. That's a huge amount of money for a smaller marketer, especially given the fact that it is a "dead expense." The upgrades will not generate one dollar more in profits and he is also being told he needs to move ahead with the upgrade as soon as possible because the equipment manufacturer anticipates a shortage as many marketers wait until the last minute to upgrade. This is just one example of the issues small to medium sized jobbers are facing in today's marketplace. These companies have been the backbone of our industry for decades. They remain the backbone of state trade associations like P&CMA. They are good businessmen and women who are active in their communities. They are American entrepreneurial success stories. They are the definition of family businesses. But they are disappearing. My involvement in this industry began in 1984. A recent graduate of Wichita State University in Wichita, Kansas I was fortunate enough to begin my career with Koch Refining Company. During my almost six year tenure with Koch Refining I held three different positions; first refined products distribution where my responsibilities primarily centered around scheduling product out of the Corpus Christi refinery. Next wholesale gasoline and diesel sales in Alabama and Mississippi and finally marketing manager for the southeast region covering 8 southeastern states. In 1989 the Executive Director of the Alabama Oilmen's Association resigned and I was asked to join the trade association. At the time I was the youngest state association executive within the PMAA network of associations. Federal Underground Storage Tank laws were just being implemented, in Alabama major oil companies still owned and operated retail locations, the thought of refiners merging would have been laughable, the smallest of communities were home to five or more branded jobberships, multi branded jobberships were the rare exception and a wholesale price change exceeding 3/4 of one-cent per gallon on a single day was almost unheard of. My how the landscape of our industry has changed over the last 25-years. Today our members face challenges that were not even contemplated in 1989. Some are admittedly of our own doing while others are a result of economic realities that are outside of our control. Either way, jobbers have either learned to adapt and change with the times or they have not survived. In preparing for my remarks, I asked several of my members what they felt were the most pressing issues of the day. Not surprisingly, given the October 1st deadline, the EMV credit P&CMA President Keynote Speaker for Lundberg Survey Founder's Day Luncheon. Bart Fletcher, CAE. Lundberg Survey is an independent market research company offering local and national coverage of fuel prices, fuel taxes, station population studies, and market shares. At the Lundberg Survey Founder's Day Luncheon, P&CMA President, Bart Fletcher addressed Lundberg employees about industry concerns, and how the market and association activities have changed over the years. His remarks are reprinted below.