CarterEnergy Blog - Blog Posts

Wednesday

Aug252010

The Power of Plastic Shifts to Bring Power to the People!

Wednesday, August 25, 2010 at 10:15AM |

If you walk into a convenience store and see retailers doing a Happy Dance, don’t run away! In fact, maybe you should join them! After years of doggedly pursuing credit card interchange fee reform, the c-store industry finally saw one of their hearts’ desires come to pass—on July 21, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law.

So what does this have to do with you?

Have you noticed that when you pay with plastic, more and more retailers are asking if that will be “debit or credit”?
Have you noticed that if you choose to pay with a debit card, more and more retailers are handing you the pin pad to key in your debit pin code?
Have you noticed that when you pay for gas at the pump, many pumps now have new pin pad technology?
Have you ever wondered why, when you have a bank DEBIT card, you would get asked if you wanted to run it as debit or credit?

Much of this change, you may or may not have noticed, has to do with a little thing called “swipe fees”.

What is a Swipe Fee? According to the definition I found at www.fightswipefees.com , a swipe fee is a fee collected from retailers by the credit card companies and their member banks every time a credit or debit card is used to pay for a purchase. This fee is also known as “interchange.” This fee varies with the type of card, size of merchant and other factors, but as much as $2 of every $100 you spend on plastic goes to card issuers.

So, again, what does this have to do with you? Open your wallets and raise your hand if you have a MasterCard or Visa in there. Our CEO, Bryan Beaver, in his blog “A Take on Rising Credit Card Fees”, stated that MasterCard and Visa are as close to a monopoly as a business can get. If you think back to Middle School social studies, you will remember that when monopolies are involved, the only entity that benefits is the monopoly.

In the retail business, we call the Dodd-Frank bill the “Swipe Fee” or “Interchange” Reform bill.

To put it simply, in 2006, for the first time, convenience stores made LESS money on gas than they paid to credit card companies for swipe fees. Over the past years, this problem has only gotten worse. With more than two-thirds of consumers using plastic payment options, you can see that this has been the cause of much angst for retailers for quite some time.

Here are some of the changes that the Swipe Reform bill will now allow that you, as a consumer, may notice when you trade at a store:

Retailers are allowed to set a minimum purchase transaction, up to $10, for credit card transactions (minimums are not allowed for debit cards). Signage should be posted stating the minimum purchase requirements. The minimum purchase amount must be the same for all credit cards.
Retailers are allowed to offer discounts for cash or debit purchases. Signage should be posted stating the discount requirements.

Paying with plastic has definitely become a way of life for many Americans. Whereas I used to pay for things via check or cash, I now pay for virtually everything with my debit card. And knowing what I now know about swipe fees, I make sure I always choose the “debit” option (even though it may be easier to choose credit) when paying with my debit card. I also think twice about buying that $1.09 fountain drink with plastic – because regardless, I know the retailer will have a fee involved.

Have you noticed these changes? If so, how have they have effected your buying patterns? While swipe fee reform is close to the hearts of retailers, it is called the “Consumer Protection Law” for a reason – we, the consumer, will always benefit in the end when competition and free trade are allowed to exist.

1 Comment |

C-Stores,

Credit Cards,

Customer Loyalty

Monday

Jul262010

Grabbing Another Gear

Monday, July 26, 2010 at 1:37PM |

Guest Blogger

By Jae Bing, Marketing Intern

“Was the dark of the moon on the sixth of June in a Kenworth pullin’ logs, Cab-over Pete with a reefer on and a Jimmy haulin’ hogs, we is headin’ for bear on I-one-oh, ‘Bout a mile outta Shaky Town, I says, “Pig Pen, this here’s the Rubber Duck and I’m about to put the hammer down.” – C.W. McCall

It was right around 4 in the morning when I approached the passenger door of a CarterEnergy fleet truck. The morning air was thick with its own dew, yet the stainless steel door handle felt cold and crisp in my hand. As I went to open the door I couldn’t stop humming the melody of the song “Convoy” by C.W. McCall. The images of Kurt Russell from Roadhouse kept swamping my head, I took nearly so long feeling the nostalgia of the truck the driver asked if I was ever going to climb inside. As I climbed into the diesel behemoth, I stopped once again as the flickering lights of the dash caught my attention. It was as if I was a fighter pilot, well co-pilot, climbing into a stealth bomber. The sheer number of gauges and toggle switches was simply astounding and just as confusing. There were toggles for headlights, cab lights, running lights, load lights, differential locks, fifth wheel lock, tractor air suspension dump, and just as many gauges monitoring the ins and outs of the truck itself. I felt like I had just climbed into a Dr. Suess book. I asked the driver if he knew what each gauge monitored, and he simply replied, “yep”. I suppose the novelty of all the gauges and switches wears off after spending 12 hours a day, 5 days week staring at them.

After performing the mandatory pre-trip inspection, in essence a high octane walk around the truck to make sure that everything is in proper working order, we pulled out of the trucking yard and off to a fuel terminal. Here the driver filled his tanker with assorted product to deliver to the awaiting customer. As we pulled into the station and started to unload, I could see the driver’s knowledge and experience at work. Staring at the driver I was simply mesmerized, it was as though Beethoven was playing “Fur Elise” right in front of me, if Beethoven were wearing a fire retardant jumpsuit and steel toed boots. However, the act of him delivering fuel was truly graceful. He knew exactly what fitting to use, where it was, which hose was just the right length, and he did it seamlessly without lacking confidence or haste. After what seemed to be a blink, I must have had an astonished look on my face because the driver looked at me and said smiling, “I bet they don’t teach that in college”. I shook my head and gave a little giggle as we drove off the customer’s lot.

Admittedly I was a little delirious at this point; to be quite honest I am not a morning person especially at 4 in the morning, but we pulled into another terminal and a realization hit me like a flying elephant with a bad wing. I couldn’t believe I hadn’t noticed. Personally I have had experience driving a semi which should have made my realization come to me much quicker than it actually had. We had already been driving for hours without even shifting a gear—the semi was an automatic. This was stupendous, maybe even horrendous, how could a driver climb into a truck that isn’t a manual? The difference between a manual truck and a manual semi is that an experienced truck driver can shift through all the gears without even touching the clutch. The truck driver matches the engine, transmission, and ground speed in order to shift his truck which takes an ample amount of skill and even more grace. However, as the reader, the important aspect of this isn’t to understand how to shift a semi-truck, but to see what this represents to a driver. If there was any kind of personified trait to a semi, it would be how it shifts. A manual semi, which is the same model, same year, same engine, same transmission, and could have been built within minutes of each other, tends to shift in a different manner. Drivers take weeks, maybe even months, getting to know their truck and how it shifts. In Carter trucks, this is a nonexistent bond that the driver and truck cannot share. I didn’t say a word to the driver.

As the day went on, the heat became more intense; it was hotter than two rats running around inside of a wool sock. However hot I was, I could not shake the thought of the truck being an automatic. The idea of the loss of connection with the machine truly bothered me as we were driving down the road. The driver received a call which he then answered with his blue tooth headset, as mandated by Carter’s safety regulations. The flying elephant came back around and hit me again. The sudden realization, of who CarterEnergy was as a company came into view. Company culture is something self-described within the word, its companywide culture, including and not limited to the drivers. The culture that Carter tries to tirelessly build is an ever dynamic, not stagnate environment. A culture that not only embraces change but constantly seeks it, and with change comes innovation, and with innovation comes efficiency which assures that Carter is at the upper echelon of fuel marketing. Considering the driver and the case of the automatic truck, this is a shining example of who Carter is and how its associates handle change. The driver, I am sure, was weary of the change, however instead of shunning the idea, he embraced it. The driver soon realized that he could take one hand off the shifter and apply both of them to wheel. He no longer had to think about his next shift, and could focus on the next lane change. So did the driver lose touch with the tractor’s soul? I’ll admit that he may have lost a little connection with the truck, however in exchange for that, he gained a new relationship with the road, and after all, isn’t that what we all have to go down?

Integrity – It’s the Right Thing to Do!

Friday, July 23, 2010 at 2:30PM |

Deborah Baska, VP Marketing Operations

My kids have been doing their summer volunteer work assignment this past week, and as a result, they’ve had to bring a sack lunch each day. My daughter packed her lunch in a BP insulated lunch sack that we had at home. She came home yesterday and reported that some of the kids were razzing her about the “BP bag” and wondering what’s up with that?

I’m proud to say that, this year, my daughter has become fairly knowledgeable about the gas and energy business by doing so much work with me on the What Will Fuel the Future RoadShow. As a result, she was able to tell the kids that while her mom doesn’t work for BP, her company does buy gas from BP and delivers it to gas stations around town. In addition, she was able to point out that those same gas stations were NOT BP but local businesses, and that, oh by the way, she was pretty pleased with her BP bag!

It has been very thought provoking to see the amount of emotion the Gulf Oil Spill tragedy has generated. In our company, that is how we refer to it – as a tragedy. It is a tragedy for our environment; a tragedy for the people who lost their lives as well as for their families; a tragedy for the many people whose livelihoods have been impacted; a tragedy for business around the country; as well as a tragedy for the oil industry as a whole.

In addition to the $20 billion relief fund BP has set up, they are also rolling out a market support program to help the BP retailers, (95% of whom are independent business operators) who are experiencing declining business as a result of consumer disillusionment with BP. As a side note, 100% of CarterEnergy’s BP retailers are independent owners as well.

A recent article (“Gulf oil spill drives down sales at some BP stations”, kansascity.com) reported that, “BP Plc is leaving it to distributors to dole out the aid, including reduced credit-card fees and fuel rebates of 1 cent a gallon, to help make up for consumer backlash over the Gulf of Mexico spill.” What surprised me about the article is that several of the BP retailers interviewed for the piece stated that they were not comfortable with the relief monies being doled out through their distributors, as they were not certain that these monies would flow down to them.

Let me assure everyone who is reading this blog, not only is CarterEnergy passing on every penny to our retailers that BP is offering in its retail support program, but we are adding our own per gallon relief support on top of it.

To CarterEnergy, this is about Integrity, which is one of the core principles on which our company was founded 50 years ago. To CarterEnergy, this is also about Strong Relationships – we have always held strong that our customers’ success is our success. When our customers suffer, we suffer. And yes, when our customers’ sales are down, our sales are down. Despite this, we believe that it is the right thing to do—to invest, not only BPs money but our own money as well, in helping our customers be strong in their businesses.

I’m proud to say that the retailer quoted in the article who stated, “My distributor has dropped processing fees to help us, and we’ve received a letter saying more assistance is on the way,” is a CarterEnergy retailer.

At CarterEnergy, we believe in putting our values into action. Our definition of Integrity is to “take ownership for fulfilling the promises that we make.” We have promised to our customers to be their “Complete Energy Source” and to do everything we can to make their success our business. That is what we believe in and that is what we hold each CarterEnergy associate accountable to do!

PS: I wanted to take this opportunity to also ask the question: Why doesn’t the media know that “BP” is not an abbreviation for “British Petroleum”, and hasn’t been since 2001?

Cut Expenses and Save Money on Store Operations

Thursday, July 15, 2010 at 2:19PM |

Amber Battle, Marketing Coordinator

With today’s struggling economy, which adversely affects sales, it’s up to you to find ways to save money so you can apply those savings to your own bottom line. Below are a few tactics that others have used to cut their own expenses.

Go Florescent — ENERGY STAR qualified bulbs use about 75 percent less energy than standard incandescent bulbs and last up to 10 times longer. Not only that, savings come to about $30 or more in electricity costs over each bulb’s lifetime. Consider using both inside and out.

Clean Your Equipment — Cleaning refrigeration coils in cold vaults and walk-in pantries will help keep your equipment operating more efficiently, saving on not only energy costs, but in lost sales due to spoilage or customer dissatisfaction in purchasing product that isn‘t cold enough.

Temperature Control — Consider putting a lock-box on your thermostat so you can maintain a consistent temperature throughout the store, discouraging employees from constantly changing levels to suit them.

One Breaker at a Time — If you have a power outage, be sure to turn your breakers on one at a time to avoid power surges that cause large spikes in your electric bill.

Push Proprietary Card Use — Proprietary, or branded, cards charge you only a transaction fee, rather than an additional percentage of the total dollar value of a transaction. That alone can save you an average of 2% per month versus a regular credit card.

Car Wash Heads Up — Run floor heaters in in-bay carwashes only when the weather requires as it can be a constant energy drain. Remember, though, that if they aren’t running when they need to be, something could freeze up, resulting in repair costs.

Web-Based Forms — Having forms at the touch of a button ensures they‘re up-to-date and can save money on printing and mailing costs. Consider providing the following on an intranet website: business forms, car wash incident reports, inventory order sheets, training manuals, etc.

I want to hear from you! What methods have you employed to save money at your own location? Send your comments at amber.battle@carterenergy.com.

1 Comment |

Best Practices,

C-Stores

Friday

May142010

Surviving Tornado Alley

Friday, May 14, 2010 at 4:00PM |

Amber Battle, Marketing Coordinator

When I was nine, the small Iowa town where I went to elementary school was practically leveled by an F4 tornado. I remember that afternoon, seeing the green sky and hearing the sirens from my home two miles away. We quickly made our way down into our dank, “cave” cellar for shelter—and I remember the uneasiness of not knowing what would happen. We were fine, and luckily, no one (especially my school friends) in that other town died. However, there were several injuries and the devastation was widespread. The majority of the homes and businesses, as well as my school, were completely destroyed.

To this day, whenever severe weather strikes, that uneasiness comes back. Even though I wasn’t an actual victim of a tornado, I’ve seen what can happen. So, when the sky turns dark, I stay glued to weather alerts on TV, with key necessities, and my pets, in one accessible location—just in case I need to grab them before running to the basement. Some people may think I’m paranoid, but I prefer to say that I’m just being prepared!

CarterEnergy is located in, and does business with, the states that make up part of the area coined as “Tornado Alley”. Recently, there were several tornadoes that affected people of Oklahoma. I remember hearing a story about one local convenience store that was heralded with helping save the lives of its customers by giving them shelter—which got me to thinking about how our own customers could become better prepared for severe weather.

There is a lot of great safety information online about tornados, and one of the most thorough and interesting sites I found was The Online Tornado FAQ from the National Oceanic and Atmospheric Administration (NOAA). While these facts are mostly for the general public, I have found 10 additional ways that businesses can be better prepared, should an ugly funnel cloud (or other severe weather) come their way:

Review your company insurance plan to ensure that tornado or other severe weather coverage is included so that you can re-coop your losses, should your business be hit. Make sure that coverage protects employees and customers who could be injured on your property, as well.
Prepare a list of critical phone numbers to have in one place, including insurance agents, employees, key vendors/suppliers, etc. Include phone, fax and email information, as not all tools may be available at a certain time.
Understand the difference between a tornado watch and a tornado warning, including the environmental conditions that apply. Make sure that you and your employees are able to recognize your community’s tornado warning signal— and take cover as soon as you hear it.
Conduct tornado training and periodic drills so that employees know what to do. Consider designating a safety coordinator to be in charge each shift, in case of bad weather. Your local chapter of the Red Cross can also help facilitate training.
Purchase a NOAA weather radio with a warning alarm and battery backup to receive timely updates.
Identify safe areas where you, your employees and your customers can go to remain safe. The best places are small interior rooms or hallways located on lower levels, away from windows. They could also include rooms constructed with reinforced concrete, brick or block.
Use UL-listed surge protectors and battery back-up systems to protect your sensitive equipment and help prevent a computer crash.
Determine which records are vital to the life of your business and make sure that you have that information backed up onto disk and safely stored at an off-site location.
Keep a disposable camera on hand to help document any damage that may have occurred.
Prepare an emergency kit with flashlights and extra batteries, a first aid kit, tools, a cell phone and food and water for employees and customers to use during a period of confinement at your business.

While everyday business can keep you busy and focused on things other than the weather, taking the time to think about some of these tips now may help keep you safe at a time when quick reaction times and an emergency plan might be the difference between life and death. So go ahead and be a little paranoid; it might just pay off!

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