http://www.GasStations.com/forum/ This is an XML content feed of; GasStations.com Industry Forum : Topping Off : Last 10 Posts Copyright (c) 2006-2007 Web Wiz Forums - All Rights Reserved. Wed, 08 Sep 2010 06:03:50 +0000 Sat, 28 Feb 2009 14:43:17 +0000 http://blogs.law.harvard.edu/tech/rss Web Wiz Forums 9.06 30 www.GasStations.com/forum/RSS_topic_feed.asp?FID=13 http://www.GasStations.com/forum/forum_images/forumLogo.gif http://www.GasStations.com/forum/ http://www.GasStations.com/forum/forum_posts.asp?TID=112&PID=228#228 Author: Jon Davito
Subject: Lessons from Aldi's
Posted: Feb 28 2009 at 2:43pm

My Trip to the Store

I don't normally do the grocery shopping for our family. My wife usually takes care of that, but the other day she had some things to take care of so I was charged with the responsibility of taking the kids and running a few errands. Due to the location of the places on my to-do list it was suggested that I first go to the bank, then to the library, and finally to the grocery store then back home. But not just any grocery store (we have several where I live). I should go to the Aldi's grocery store because it's on my way home from the library.

That was fine with me because, as I said earlier, I don't usually do the grocery shopping but I do take care of the family finances and I've noticed that the grocery bills from Aldi's are always lower than when we shop at the other supermarkets in the area. I never gave much thought as to why the grocery bills were lower, I was just glad that they were and thought that it was probably because of the "off-brand" groceries Aldi's stocked. So I was happy to save a few bucks. I was given the grocery list, a stack of cloth bags for the groceries, a quarter, and sent on my way.

"A quarter?" you might ask. Yea, that's what I did too. It will make sense in a bit.

Surprise Number One: The Shopping Cart

The bank and the library went off without a hitch. Pretty standard stuff. Then it was on to the grocery store. The first thing I noticed when I got the kids out of the car was that all the shopping carts were stacked up out side and locked together like bicycles on a bike rack. Each cart was equipped with a lock box and a chain that secured it to the cart in front of it. To get a cart, you had to insert the quarter into the lock box which freed it from the cart it was chained to.

"What the hell has this world come to?" I thought to myself. "Paying for a shopping cart? This grocery store is going to nickel and dime me every chance they get." I was immediately pissed and went inside to continue my shopping.

Surprise Number Two: The Employee to Customer Ratio

Taking my bad attitude with me, I proceeded to get the items on my list. Since this was the first time I've been there, I had no idea where anything was and spent a good deal of time wandering back and forth around the store. I observed that most of the groceries were in fact "off-brand" but I also noticed that on this particular Friday afternoon, there were about 20 to 30 other people in the store shopping for groceries. You know how many employees I saw? One. I was in the store for about half-an-hour and saw only one employee.

There may have been other people in the back doing office work or shuffling groceries around the warehouse, but there was only one employee on the floor during the entire duration of my shopping trip. Somewhat less angry, I thought to myself, "How does one person service a 15,000 square foot grocery store?"

Surprise Number Three: Bags for Sale

"Paper or Plastic?" That's what the bagger typically asks you at a grocery store. But guess what? At Aldi's, not only was there no bagger (remember, just one employee), there were no bags available. Well, that's not entirely accurate. There were bags available but you had to pay for them. I believe the cost was $0.06 for each paper bag you needed to pack your groceries. But I didn't need any because I brought my cloth bags.   However, once you had the bags, the customer was charged with the task of stuffing them with groceries.

Checkout, Refund, and the Retrospective Drive Home

There were three or four checkout lanes, but since there was only one employee, only one lane was open. I had to wait for the two people in front of me, but it didn't take as long as I thought it would and soon it was my turn to checkout. I paid for my groceries and headed over to the table to bag them myself. I thought to myself, "I'm the customer. Why do I have to work?"

I wasn't so angry now about the quarter now. More, I was curious about the whole experience and the wheels started turning in my head. I headed out to the car, loaded up my kids and the groceries and went to put the cart back on the "chain". Then, something unexpected happened when I locked the cart back up: I got my quarter back!! It just popped right out. I was pretty happy then and started to feel a bit sheepish about being so mad earlier.

By the way, I spent about $72.03 at the store and got an entire cart-full of groceries. It's probably enough food to feed my family of four for more than a week. I could never have done that at the other supermarkets. That's really cheap for a cart-full of groceries. How the hell can they do that? Driving home I started thinking about it and came up with the following list of possibilities:

• Cheaper products - The products themselves were cheaper because they were, for the most part, off-brand. But, they all taste just fine. The produce was fresh, the dairy and meat products were just fine too. Just not the major brands you see in the major supermarkets.



• Low overhead - So I was mad about the quarter but you know what, they're not paying someone $8.00 an hour to run around the parking lot collecting shopping carts. By requiring the customer to put up $0.25 as collateral for using the cart, they encourage people to return them to the store, thus eliminating the need for an employee to collect them. Also, there was only one employee on the floor but she was kept busy. They weren't paying five people to sit around and stare at each other when things get slow.



• Not charging for unneeded resources - I didn't need grocery bags. So why should I have to pay for them? I bet the other supermarkets add the cost of paper and products into the grocery prices somewhere. Not at Aldi's. That cost is only incurred by people who consume that particular resource.



• Putting the customer to "work" - No bagger means the customer has to do a little work, but if the result is cheaper prices for me, I don't mind doing a little bagging. Besides, I'll make sure that my eggs never get broken or the bread gets smashed. There's probably thousands of grocery store baggers out there that don't give a crap about my stuff.

Lessons Learned from Aldi's

I think all of the items on this list combine to save Aldi's money. In turn, they pass their savings on to their customers. Their prices can remain low because their cost of doing business is low (relatively speaking). By requiring the customer to put up $0.25 as collateral for using the cart, they encourage people to return them to the store, thus eliminating the need for an employee to collect them. They don't charge people for things they don't need/use (I wonder what would happen to the price of a value meal if McDonalds let me bring in my own ketchup and napkins). And they save themselves and the customer money by asking the customer to pitch in and lend a hand.

As I said earlier, I don't normally do the grocery shopping for our family but I do take care of our finances. This morning I looked through my records and compared the amounts of money we spent on groceries in 2008 at the four major grocers where we live. Adjusting for the differences in frequency of visit, I was able to establish a baseline of the average cost per visit to each grocer. The difference was astounding. Absolutely astounding. We spent significantly less money per trip at Aldi's than at any other grocery retailer. Significantly less money.

I'm a fan of the way they do business and I'm a fan of the money I save.

Questions for Other Retailers

Can you offer cheaper products? Will your customers tolerate a discount in "brand" if it means a discount in price?

Can you lower your overhead? Are there any redundancies in staff or positions that can be combined or eliminated? Do your work-flow processes make sense?

Are you charging all of your customers for resources that are only consumed by some? Can you find a way to fix that and pass the savings on to your customers?

Can you put your customers to "work" for you?   Is there something they can do for themselves that will save them money?

Let me know what you think. I'm interested in hearing what you have to say. Till next time,

-Jon D.



]]> Sat, 28 Feb 2009 14:43:17 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=112&PID=228#228 http://www.GasStations.com/forum/forum_posts.asp?TID=111&PID=216#216 Author: Jon Davito
Subject: Surviving the Economic Tidal Wave
Posted: Feb 15 2009 at 1:15pm

Self-Identity and the Bottom Line

When people ask you what line of business you are in, what do you tell them? Perhaps it's something like: "I'm in foodservice. We're in the retail business. My family owns a distribution company. I work for (fill in the blank)."

On a superficial level, your answer tells people what industry you're in or how you earn a living.   But at a deeper level, your response can give folks an insight into how you view yourself or your business from an internal perspective.

Believe it or not, this self-identification can have a significant impact on your bottom line. I believe there is a direct correlation between how you view yourself and how you execute your business. Who you think you are, what industry you think you serve, and what customer base you think you cater to, directly affects the business decisions you make and the results you see. Even in these tough economic times, an accurate understanding of where you fit into your industry can lead to a tremendous amount of success. But on the flip side, a misunderstanding of your self-identity can have dire consequences.

I've long held this belief. And a recent podcast posted by the Media Hacks group centered around a conversation that brought to my attention two real world examples of this theory in action. The following stories highlight two companies that found themselves at a crossroads. Both companies were faced with tough decisions about who they were and which direction they needed to steer towards in order to navigate the troubled waters they found themselves in. Both faced situations where they needed to reflect on their identities and both made fateful decisions. One company chose poorly and went from a leader in their field to almost relative obscurity. The other company chose wisely and skyrocketed to one of the most profitable global companies of the past two decades. Here are their stories.

Encyclopedia Britannica Publishes Itself into Obscurity

Born in 18th-century Scotland, the Encyclopedia Britannica was for centuries the de facto standard of excellence as an information resource. Over time EB grew and sold countless sets of their voluminous works. For many years there was likely a set of EB encyclopedias in every single classroom, home and office in the literate world. There was no doubt about it, EB was not only in the encyclopedia business; they dominated the encyclopedia business.

Fast-forward to the 1990's. Technology was evolving at a rapid pace and the personal computer was making its way into more and more classrooms, homes, and offices. So in 1994, EB published its first version of the encyclopedia set on CD-ROM. It was still the only game in town for information and EB still continued to make a tidy profit by selling its resources. But then, the Internet was born. And it was a game-changer.

The Internet brought with it countless sources of free information and knowledge (albeit, some of questionable quality).   Nevertheless, EB had a decision to make: "How do we compete with all this information on the Internet?" They responded by migrating their encyclopedias to the Internet, but still chose to charge users for access to the resources.

Today Wikipedia is the most widely used resource on the planet. A free warehouse of knowledge that is used and maintained by ordinary folks like me and you. Where is EB? Ask any kid under the age of 12 what the Britannica is, and they'll likely turn to the Internet to find the answer.

Super Mario Takes Nintendo to the Bank

I bet you didn't know that Nintendo started out as a playing-card company. Yep, the Nintendo that we know today, the beloved creators of Mario, Donkey Kong and the now popular Wii, was founded in Japan in 1889 and for almost a hundred years manufactured and sold playing cards. It wasn't until the 1970's that they started making electronic toys and games. What prompted this change in direction? Some say that it was a 1956 visit to the United States by then Nintendo president Hiroshi Yamauchi that changed everything.

In the mid 1950's Yamauchi traveled to the US to engage in talks with United States Playing Card Company, the dominant playing card manufacturer in the United States. He was shocked to find out that the world’s largest player in his business was using such a small office and occupied such a tiny space. It was then that he realized the limitations of the playing card industry. Yamauchi probably asked himself, "How are we ever going to grow our business if the upper limit of our field is so small?"

In the 1980's Nintendo went on to create the NES, a home gaming system, and sold millions of video games with some of the most recognizable characters in the history of gaming. And today Nintendo remains a dominant player in the multi-billion dollar a year video gaming industry.

Lessons Learned from EB and Nintendo

Both EB and Nintendo found themselves at a crossroads and both had to ask themselves identity questions. EB made the declaration, "We are in the encyclopedia business," and chose to stay with their existing business model (pay-for-content). But the fact was, people didn't want encyclopedias, they wanted information. They didn't care about the paper and leather bound volumes that took up space on their book shelves. They only cared about what was inside. EB should have realized that, "They were not in the encyclopedia business; they were in the information business." By making their information freely available to the public in the online space (supported with paid advertisements of course) EB could have had an early strangle-hold on the information business. And start-ups like Wikipedia would never have had the chance to hit the scene. Instead, they chose to remain firm and consequently found themselves more and more obsolete.

On the other hand, Nintendo took a look at itself and said, "We are not in the playing card business, we are in the entertainment business." They knew at their core that the company ideology didn't revolve around plastic playing cards. It revolved around bringing people joy and selling happiness. They were able to see the limitations of one particular product line and adapt to the times by embracing the trends of the times and creating another product line. To this day, Nintendo makes some of the most fun video games. They may not have the number one or two best sellers (the war games and violent shoot-em-ups), but they sell a ton of fun and family entertainment games and probably sell more games by volume than the other two competitors.

Jujitsu and the Current Economy

Nintendo was flexible and able to adapt. EB was rigid and stood-firm. What does this have to do with businesses today? I think businesses today must be flexible like Nintendo. They must be able to adapt and change with their environment. It's no secret; we are in some unprecedented territory with the current economic environment.   Think of the current economic situation like an ocean wave: if you try to stand firm and take it head-on, you're probably going to get rolled. If you stand firm, you'd better have a deep foundation (and deep pockets). But if you see the wave coming and change your position, you can ride it all the way into safety.

A metaphor that really resonated with me is to think like a jujitsu master. Jujitsu is an ancient martial art of self-defense. Practitioners of jujitsu aren't always the biggest or the strongest, but they are quick and adaptive. Consequently, someone with knowledge of jujitsu can take down a much larger opponent.

If you were to throw a punch at a jujitsu master (not recommended) he wouldn't stand there and eat a knuckle sandwich. He would first evade the punch then take your arm and, using your current momentum, proceed to throw you to the ground and choke you. The jujitsu master uses his attacker's force to his advantage.

Surviving the Economic Tidal Wave

What external forces are acting upon you? What can you do to leverage those forces to create positive momentum? To answer those questions, I think you first need to do an exercise in self-identification. So, back to my very first question, "When people ask you what line of business you are in, what do you tell them?"

First, take your "standard" answer and look at it from a broader perspective. For example, "we're not in the playing card business; we're in the entertainment business." Now, take your "standard" answer and look at it from a narrower perspective. I know being introspective can sometimes be difficult, so ask someone else, "What is it that you think I do?" Ask someone that knows your job very well, a colleague or boss. Then ask someone that doesn't know your job very well, like a neighbor or relative. I bet you'd be surprised by the diverse array of answers.

I think the key to surviving the economic tidal wave is to first, identify who you are and what you really do. Then, find the balance between your business identity and the forces acting upon you, and use those external forces to your advantage. Be adaptive; change your course if necessary. The winners throughout natural history have been those organisms that were able to evolve and adapt to their environment. I believe the business world is no different.

-Jon D


]]> Sun, 15 Feb 2009 13:15:40 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=111&PID=216#216 http://www.GasStations.com/forum/forum_posts.asp?TID=110&PID=196#196 Author: Jon Davito
Subject: What's Your Gas Price Pain Threshold?
Posted: Jan 30 2009 at 2:59pm

Gas prices have started to creep back up again. Just a few weeks ago, prices in my area hit a low of about $1.21 per gallon. At the peak of the price frenzy last summer, prices were as high as $4.00 a gallon. That's a difference of around $2.79 per gallon...a significant number by anyone's standards.

Gasoline in most parts of our country is a necessity. Like food, water, and sleep, you gotta have it. No matter what the price of gasoline is, you'll still have to fill your tank to get to where you need to go. Therefore, I can argue that the price of gas at any one station in America is completely insignificant. That is, of course, until the price of gas at Station A is put into context by comparing it to the price of gas at Station B, a neighboring station...who is competing for the consumer's dollars.

In short, it's not the absolute cost of fuel, but rather the relative cost of fuel that drives consumer behavior. And this difference in price results in some very irrational behavior on the part of many consumers. Let me explain.

Would you go out of your way to save $0.20 a gallon? Would you inconvenience yourself for $0.15 a gallon? What about $0.10 a gallon? I know people who would go to some lengths to save $0.04 a gallon of gas. Four cents a gallon. Assuming a 15 gallon tank and an empty tank of gas, that's a maximum savings of...(drum roll please)...$0.60. Sixty cents!

That, to me, is irrational behavior.

For me, there's more than the price of fuel that will determine which gas station gets my business. Convenience is a major factor, time and location are others. I like to pay at the pump. Would I regularly visit a station that requires me to go inside to pay? Probably not. Will I wait in line to fill up my tank? Very improbable. Would I choose a station that requires me to turn left across four lanes of busy traffic with no traffic signal? Not likely.

I would be willing to pay more money for fuel, to find a gas station that satisfied my requirements of "easy in, easy out".

What then would prompt me to violate my rules? That would be my gas-price pain threshold. That's the upper limit of the dollar amount I'm willing to spend on convenience, time and location. My gas-price pain threshold is $5.00. That means I would be willing to pay an extra five dollars for fuel if the experience was convenient, fast, and hassle-free.

Now for a little math.

Let's create a value called the pain-price differential. This is the cost difference per gallon a consumer would be willing to pay for convenience. Assuming I have a 15 gallon tank, the tank is empty, and my gas-price pain threshold is $5.00; my pain-price differential is $0.33 (five dollars divided by 15 gallons). This means that a retailer who can satisfy my requirements of "easy in, easy out" can charge a consumer like me up to $0.33 more per gallon than a competitor who can not make my experience convenient.

Assuming I'm normal (which is an adjective I've never heard someone use to describe me) everybody should have a pain-price differential. What's yours? Take your gas-pain price threshold (in dollars) and divide it by the size of your empty gas tank (in gallons). The resulting dollar amount is the extra price you'd be willing to pay per gallon of gas provided a convenient experience.

What does this mean for retailers? Here's where it gets interesting.

The margins on fuel sales are anemic. I believe the average markup on fuel is around $0.10 - $0.15 per gallon. Of that skinny margin, the credit card companies take around $0.08 per gallon leaving the gas station owner with a paltry $0.07 net gain per gallon at the very best. If a retailer sold 100,000 gallons of fuel per month at a $0.07 profit, he would make about $7,000 on fuel sales.

Can you imagine what would happen to his margins if he added in my pain-price differential? Increase his 7 cent profit by 33 cents and he's now making $0.40 per gallon profit. At 100,000 gallons per month, his profits would be $40,000 compared to $7,000 without.   Even if he lost half of his fuel sales due to his inflated prices, 50,000 gallons at $0.40 profit would be $20,000. That's a 286% increase in fuel profits.

Would this actually work in the real world?

I don't know. Probably not, but it's a pretty cool thought exercise. Here's a few reasons why it probably wouldn't work in practice:

Credit card fees aren't static - they'll increase as the sales amount increases, eating into profits.

Somebody will cry about price gouging - We're not being manipulative here, but someone will complain.

People are Predictably Irrational - They would see the difference in price on the reader boards and choose the cheaper price. Even if it meant violating their convenience requirements.

What do you think? Would you pay for convenience? Do you have a gas-price pain threshold? What's your pain-price differential?

Till next time,

-Jon D.

]]> Fri, 30 Jan 2009 14:59:06 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=110&PID=196#196 http://www.GasStations.com/forum/forum_posts.asp?TID=107&PID=182#182 Author: Jon Davito
Subject: CSNews 2009 Forecast Study Now on Sale
Posted: Jan 26 2009 at 7:49pm

The 2009 Convenience Store News Forcast Study is now on sale and we have it. For the seventh strait year, the editors of Convenience Store News have met with senior c-store industry executives to preview and scrutinize industry data and forecast models to give you their predictions for the coming year. What will 2009 bring?

"In the world of retailing, the magic formula of leveraging value, variety and convenience to win shopper dollars is being reformulated and value is the variable in the formula receiving the most attention from consumers, shoppers, manufacturers and retailers. [The] winning manuafacturers and retailers will be those who have developed a strong value proposition for consumers and shoppers" - Kristen Moore, Director of RMS Leadership, Nielsen

This 63 page PDF report contains six pages of editorial and a staggering 57 pages of data on almost every c-store category possible. Centered around estimated sales volumes, retailers can use this report to predict consumer behavior across multiple in-store categories and make predictive purchase decisions. Distributors, in turn, can extract value from this report by anticipating retailer orders based upon the same valuable data.

Does your store sell cigars? Should you? Find out on pages 25 & 26. Sports and Energy drinks were HOT in 2007. What will they do in 2009? Get the answer on page 32. How much cooler space do you reserve for bottled water? Is it time to re-think that strategy? Page 35 lets you know.

The report itself costs $199.00 which at first seems like a lot of money. But, if you consider the impact that this data can have on your top-line sales and bottom-line results, access to this report is definately worth the price of admission.

Plus, I have a special offer for you, my loyal readers. I'm offering a $15 dollar off e-coupon to the first 20 people who purchase this report through GasStations.com. All you have to do is visit our products page and click on the 2009 Forecast Report. When you get to the check-out page, you'll see a place for a coupon code. Enter in the code: CRST4G78 and hit "Apply". You'll instantly see the $15.00 discount. But you should probably act fast. I've only got 20 coupons .

Until next time,

-Jon D.

Edited by Jon - GS - Jan 26 2009 at 7:50pm]]> Mon, 26 Jan 2009 19:49:31 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=107&PID=182#182 http://www.GasStations.com/forum/forum_posts.asp?TID=106&PID=180#180 Author: Jon Davito
Subject: 2009 NACS Sate of the Industry Survey
Posted: Jan 25 2009 at 3:52pm

A few days ago NACS revealed that their annual State of the Industry Survey was mailed out to all its members. The data collected in the survey will be used to generate the (appropriately named) NACS State of the Industry Report.

I just want to take a minute and ask all of you out there who are NACS members to please fill out this survey. Quality results in the ensuing report will benefit everybody in the industry. And the only way to achieve quality results is through participation. I believe that we owe it to the industry, that affords us a living, to give back every once in a while.

If duty and responsibility aren't enough to get you to fill out the survey, NACS has decided to sweeten the deal by offering all participants a FREE copy of the final report and a free copy of the NACS Fact Book CD. The cost of these items is $175 for non-participating NACS members $600 for non-members. That should stir up some activity. A few disclaimers:

• I am a NACS member
• I plan on participating in the survey
• I am not compensated by NACS to promote the survey
• I was not asked by NACS to write this post

Then why am I encouraging participation in the survey? Simple, I believe in the cause. I believe the results of the survey will help countless people in the industry and in order to get the most accurate and beneficial results, NACS will need participation by a representative sample of the industry population. Furthermore, I don't think there are enough "voluntary hand-raisers" in the industry that will give NACS the representative sample they'll need. So I'm adding my voice. What do I mean by that? Let me explain.

In their book Groundswell, Charlene Li and Josh Bernoff of Forrester Research identify six levels of consumer behavior based upon how people interact and participate in online activities and with social technologies. These behavior categories are: Inactives, Spectators, Joiners, Collectors, Critics, and Creators. Li and Bernoff define these behavior categories within the context of social media, but I believe the same behavior categories can be applied to many areas where a relationship is defined by participation or non-participation. Thus, I believe an apples to oranges comparison can work in this instance.

I think there are too many Inactives and Spectators in our industry. I understand that not every person can be a Creator, but I see the need for more Joiners, Collectors and Critics. This is why I'm promoting the NACS survey. I want more people to take action and participate in this and other simple activities that will benefit the greater industry.

So, if you are a NACS member, please take a few minutes and fill out the survey. I haven't received mine yet, but when I do, I'll update this post and let you all know how absolutely painless the experience was.

-Jon D.

P.S. Still need more proof about the power of participation? When was the last time you used the Wikipedia? It's the most widely used reference source in the world today and it's put together by regular folks like me and you. There's a stellar example of what can happen when people evolve from Inactives and Spectators to Critics and Creators.

]]> Sun, 25 Jan 2009 15:52:47 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=106&PID=180#180 http://www.GasStations.com/forum/forum_posts.asp?TID=105&PID=179#179 Author: Jon Davito
Subject: Early Candidate for Email of the Year 2009
Posted: Jan 23 2009 at 2:25pm

Here is an excerpt of a real email I received the other day:

Hello Jon, Received your letter and most of the envelope today, no ink pens. I guess they got caught up in the postal machine and torn out. Just an FYI on what happens when you send them out in a regular envelope.

For those of you who don't read my newsletter, last month I offered to give away two free inkpens to the first ten people who contacted us and told us what they did (e.g. how they relate to the industry). I received a handful of responses and promptly sent out the inkpens as I promised.

According to this "lucky" recipient, her envelope arrived as a tangeled, torn-up mess...with no inkpens. Apparently the USPS frowns upon sending inkpens in regular envelopes with first-class postage. I emailed her back and we both got a good laugh out of it, and I promised to re-send two more inkpens in a padded envelope.

But the experience got me thinking: at what point in the mailing process does an envelope get so shredded? Who is responsible for determining whether or not a shredded document should still be sent to the addressee? Or returned to the sender? At some point I'm sure the post office just says, "forget it" (or something like that) and tosses the torn-up envelope into a giant pile with the other torn-up envelopes. I bet there's a whole room somewhere just full of torn-up envelopes. Perhaps that's where defective and unwanted mail goes to die? Kind of like the Island of Misfit Toys except for mail.....

Anyway, enough of the rambling. The point of this post is to (1) admit that I made a mistake in sending the ink pens out in a regular envelope and (2) to announce that the free ink pen offer is officially off the table.

Sorry to all of you who were counting on us to stock your business with office supplies, but I can't justify the cost. Since I didn't get any notices from the other ink pen recipients, I'll assume that theirs were received in acceptable fashon. If I'm wrong, let me know and I'll resend your ink pens too.

All for now,

-Jon D.

Edited by Jon - GS - Jan 25 2009 at 5:33pm]]> Fri, 23 Jan 2009 14:25:31 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=105&PID=179#179 http://www.GasStations.com/forum/forum_posts.asp?TID=104&PID=178#178 Author: Jon Davito
Subject: RSS and Google Reader Explained
Posted: Jan 22 2009 at 4:09pm

FINALLY!! The folks a Google have put together a short video on how to use Google Reader. Please check it out:

[TUBE]PvKFP67GwSY[/TUBE]

This is the first in a series of four that explains how to use Google Reader to subscribe to RSS feeds.   Now you don't have an excuse NOT to subscribe to the GasStations.com RSS feed. Just in case you need it, here are the links to the two GasStation.com feeds you need to subscribe to:

For the Listings

and

For this Blog

Watch the videos and sign up for the GasStations.com RSS feeds. You'll be glad you did.

-Jon D.]]> Thu, 22 Jan 2009 16:09:02 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=104&PID=178#178 http://www.GasStations.com/forum/forum_posts.asp?TID=103&PID=177#177 Author: Jon Davito
Subject: MPACT-Show March 24-26th
Posted: Jan 21 2009 at 10:57am

Hey,

Just a quick note to let you all know that we'll be attending the M-PACT show this Spring. The show is at the Indiana Convention Center in Indianapolis and takes place on March 24-26th. If any of you are going and would like to meet up to chat for a while, send me an email and we can try to get together.

For those of you who are unalbe to attend, I plan on keeping you all informed as the show goes on. I'll be snapping photos with my phone and uploading them to a public Flickr account so you can all see what's happening. I'll also sharing my thoughts about the show live on Twitter. If you're unable to attend, following me online would be a great way to stay conected with the show. More details about the Flickr and Twitter feeds to come.

If any of the event coordinators (Indiana, Illinois, Kentucky, and Ohio associations) out there are interested in joining forces on Flickr or Twitter for the event, let me know.

-Jon D.]]> Wed, 21 Jan 2009 10:57:35 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=103&PID=177#177 http://www.GasStations.com/forum/forum_posts.asp?TID=101&PID=175#175 Author: Jon Davito
Subject: The Gas Station "Danger Zone"
Posted: Jan 14 2009 at 12:30pm

I was chatting on the phone yesterday with Terry Monroe of American Business Brokers and we were talking about the state of the industry in terms of selling and reselling of the actual gas station and convenience store businesses. You know, the kind of stuff that business brokers do.

Terry said that during this year of 2009, as in the past, he is focusing on helping business owners in the c-store industry who operate between 5 – 20 stores. I asked him why he chose such a specific client base and he said, “Because those are the people who need our services the most.”

I asked him to explain what he meant by that and his answer was both something I’ve never thought of before and something that I thought was interesting enough to write about and share with you.

The theory goes something like this: Many people who operate between 5 – 20 stores are put in a tough spot because they’re stuck between two categories. They’re in a gas station “danger zone” so-to-speak (my term, not his).

This size company is too large to operate using small-business tactics and they are too small to operate using large-company tactics. As a result, they struggle to take advantage of the opportunities that either category has to offer.

If they would divest some of their assets, these companies could operate more efficiently, by managing a smaller number of stores, and raise profits based on increased margins. If they would acquire more assets, these companies could take advantage of economy-of-scale, by bulk purchasing and distribution, and increase profits based on sheer volume.

Terry cited specific examples and anecdotal evidence from his time as a business owner and broker that made me believe this theory actually holds some weight. I asked Terry if he’d develop this concept into a full length article or case study and I really hope he takes me up on it.

Anyway, what do you think? Do you believe in the theory of the gas station “danger zone”? I’d really like to hear from you.

Special bonus points go to retailers that actually operate between 5- 20 stores. Who knows, I may have some GasStations.com ink pens for someone with a really good comment!

And Terry, if I misquoted you in any way, please respond and correct me.

Best to you all,

-Jon D.]]> Wed, 14 Jan 2009 12:30:44 +0000 http://www.GasStations.com/forum/forum_posts.asp?TID=101&PID=175#175