While hypermarkets have made an aggressive push into retail gasoline in recent years, they still only represent less than 3% of total U.S. retail gasoline sales. But the segment is at an early stage of development and has a lot of room to grow—to the tune of 20.8 billion gals/yr, or a 14.8% share of the market, by 2005.

According to a report about to be released, 10 companies will control 77% of total hypermart fuel sites, and 84% of the sector’s gasoline volume by 2005. Those companies are BJ’s, Albertson’s, Costco, Kmart, Kroger, Meijer, Royal Ahold, Safeway, Wal-Mart and Winn Dixie.

• Hypermarts generally average about 280,000 gals of gasoline sold per month, at prices 5-15 cts/gal less than major-branded operators in their market regions. This translates into a rack-to-retail margin of 6-8 cts/gal.
• Although some hypermarts have signed long-term agreements with refiners, such as Wal-Mart with Murphy, Tesoro and Sunoco, conditions generally aren’t favorable for major brand refiners to partner with hypermarts because of strong existing distributor relationships.
• Wal-Mart’s recent industry partnerships have extended its retail gasoline reach nationally. Its partnership with Murphy has given Wal-Mart gasoline coverage in the Southeast and Gulf Coast, and soon, the Midwest as well, as Murphy expands there. Wal-Mart’s agreement with Tesoro extends its gasoline presence into the West Coast and Rocky Mountains under the Mirastar brand name. And the discounter’s most recent agreement with Sunoco will allow it to develop fuel facilities in the Northeast.
• Costco, a traditional powerhouse in the West, has been expanding its presence eastward. Nearly three-quarters of its fuel sites are on the West Coast or in Rocky Mountain States. Its greatest potential for expanding fueling operations, however, is within existing sites in the Pacific Southwest and the Northeast.
• Albertson’s, another strong West Coast fuel marketer, has enhanced its presence into the heartland with fuel sites in Oklahoma. EAI says the retailer is expected to expand its gasoline presence in all of its existing markets over the next few years.
• Kroger is also expanding across all existing markets. Its greatest concentration of fuel centers is in the Midwest, where it launched its gasoline business.

In the world of automotive repair, shop operators and technicians have a handle on replacing engine and transmission-oil filters, fuel filters and air filters, but there's a relatively new type that they might ignore or not even know about - cabin-air filters.

These filters are available in two types - particulate and carbon - and are designed to keep the passenger compartment free of pollutants. Particulate filters are designed to remove pollen, road dirt, soot, spores, allergens and respirable particles. Carbon filters are designed to filter out all of these substances in addition to odors.

Although they may be new to some, cabin-air filters have been used in VW Golf models since 1990, Acura Legend since 1991 and limited BMWs since 1992. Ford started using them in a variety of vehicles in 1995, and GM followed two years later.

Aftermarket replacements for cabin-air filters vary in price, but here's an example involving a popular passenger car. The replacement filter for my 1996 Taurus sells for about $13, and one of the major discount parts-and-service centers I called charges $50 for labor to replace it. On the Taurus, the job takes about 15 to 20 minutes. Two panels on the passenger side near the firewall have to be removed to provide access. The old filter is then removed, a new one inserted and the panels replaced.

The Ford owner's manual recommends replacing these filters every 30,000 miles. By the time I had it done the odometer read 32,000 miles, and the filter was filthy - partially because of the oak tree that grows in my yard. There was no doubt in my mind that it needed replacement once I saw it.

However, as with oil filters, recommendations by suppliers of aftermarket filters aren't always the same. Although some carmakers recommend oil changes every 6,000 miles, most oil suppliers and retailers suggest 3,000-mile intervals. Likewise, although some vehicle makers say cabin filters should be changed every 30,000 miles, some aftermarket suppliers recommend replacement every 15,000 miles or once a year.

Also, be prepared to use your repair information providers to help you find a vehicle's cabin-air filter. Although most are near the firewall and windshield, Acura and Honda models have them behind the glove box.

If you ask customers whether they would like to have their cabin-air filters replaced, they may not know what you're talking about. If you take the effort to remove the filter, they should agree to replace it - for several reasons:

• Because no one has bothered to check it before and it's filthy.

• Because you've explained the purpose of the filter.

• Because you promoted replacement with back-up information, preferably during hay-fever season.

Acura - Legend, RL, TL

Audi - A4, A6 and Audi 90

BMW - 318i, 318is, 318ic, 325i, 325is, 325ic, 328i, 328ic, 328is, 525i, 530i, 535i, 540i, 740i, 740il, M3 and M4

Buick - Century, Park Avenue and Regal

Cadillac - Catera

Chevrolet/GMC - Sierra, Silverado and Venture

Ford - Contour, Expedition, F-150 and Taurus

Honda - Accord

Lincoln - Continental, Navigator

Mercedes - C220, C280, CLK320, E300D, E320, ML320 and SLK230

Mercury - Cougar, Mystique and Sable

Oldsmobile - Intrigue and Silhouette

Pontiac - Transport, Montana

Porsche - Boxster and 911 Carrera

Saab - 9-3, 900 and 9000

Volkswagen - Beetle, Golf II, Golf III, Golf IV, Jetta and Passat

Volvo - 850, C70, S70 and V70.

The Equal Employment Opportunity Commission (EEOC), the Minnesota Department of Human Rights (MDHR) and various city departments of human rights (e.g. St. Paul Department of Human Rights) are each responsible for investigating employment discrimination claims. Once an employee or ex-employee files a Charge of Discrimination against an employer, the regulatory agency will commence an investigation that will require the employer to provide significant and detailed information concerning the employer's business. Unlike a judge in a lawsuit, an investigator with a regulatory agency is both judge and jury. They will determine the facts and decide whether the law has been violated. As a result, it is essential that employers understand the regulatory system and properly respond to investigative requests.

The first instinct for many employers is to terminate the employment of an employee who has filed a Charge of Discrimination. This instinct must not be followed. There have been many cases in which the regulatory agency found no probable cause to support an initial Charge of Discrimination only to find a violation of the law as a result of retaliation.

Although a Charge of Discrimination is not a lawsuit, employers should have counsel throughout the process.

Today, many employers carry insurance that affords coverage for claims of discrimination. Under such policies employers are required to notify their insurance carrier of any "claim." While a Charge of Discrimination may not meet every policy's definition of "claim," the best course of action is to notify the insurance carrier and agent of the Charge of Discrimination and request that the carrier provide legal defense.

Employers are required to file a response to a Charge of Discrimination within twenty days after receiving a Charge. The regulatory agency will request a response to the claimant's factual allegations and will require the employer to provide extensive documentation regarding hiring practices, personnel files, terminations, disciplinary actions, wages, etc. Often, the regulatory agency will make a second, more particular, request for information after the first set of documents has been reviewed.

Employers should also expect the regulatory agency to interview those employees with first hand knowledge of facts relevant to the Charge of Discrimination. The employer's attorney will be allowed to attend interviews of those employees considered to be management." Employees who are not "management" may also be provided with counsel unless the employee objects. It is important for counsel to attend the interviews, as many times the interviews are not recorded.

Two determinations are possible: (1) a finding of probable cause to believe that unlawful discrimination occurred, and (2) a finding of no probable cause. If probable cause is found, the regulatory agency will attempt to negotiate a resolution (i.e. settlement). If settlement can not be reached the regulatory agency may commence litigation against the employer.

If no probable cause is found, the case will be dismissed subject to the charging party's right to appeal to the regulatory agency or commence suit in court. A charging party whose Charge of Discrimination has been dismissed has 45 days to commence litigation.

1. Background:

The Occupational Safety and Health Administration (OSHA) requires employers to compile a log listing employee injuries and illnesses occurring on the job. In addition, each year, employers must post, for a period of 30 days, a list of employee injuries and illnesses for the preceding calendar year. Only occupational related illnesses and injuries occurring in the workplace are required to be recorded and posted.

2. Log Requirements:

• Each case of occupational illness and injury must be recorded on OSHA Form 200 within 6 days after occurrence. All OSHA Form 200s must be kept in a log and be available for inspection by employees, former employees and OSHA inspectors.
• Information recorded must include: the name of the employee, the date of the injury or illness, job title, department, description of illness or injury, changes in extent of injuries and illnesses, work days lost and number of fatalities.
• A copy of the log must be kept on site for a period of at least 5 years.

1. Posting Requirements:

• Each year between February 1 and March 1, employers must post in the workplace annual summary totals for the above information with the exception of the employee's name.
• Where no occupational injuries or illnesses occur during the previous calendar year, a posting is still required with zeros entered under each category.
• The posting must be signed, dated, and left in a conspicuous place for employee viewing (employee bulletin board).

1. Forms:

• OSHA Form 200, or equivalent recording containing identical information, must be used for both the log and the posting requirements. OSHA Form 200 consists of one double-sided sheet of paper divided by perforated edges into two sections, one half is reserved for log recordings and the other half reserved for posting. Detailed instructions are on the back of the form.

1. Compliance Date:

• Postings recording the previous calendar years information must remain in a conspicuous place for employee viewing between February 1 and March 1 of each year.

A common complaint of truck drivers, backache, may come under government regulations with a sweeping new ergonomics standard from the Occupational Safety and Health Administration (OSHA).

The rules, which apply to all industries except construction, maritime, agriculture, and railroads, are intended to address musculoskeletal disorders. There are no specific jobs listed in the rule, but MSDs are typically associated with stress and strain to the neck, shoulders, elbows, forearms, wrists, hands, back, knees, ankles and feet.

OSHA has been working on a standard to reduce MSDs for several years but didn’t issue a formal proposal until last year. Harsh criticism from business and industry prompted some changes, but the final rule isn’t likely to sit well with most employers.

The first action required of all covered businesses is to inform employees of common MSDs, including the signs, symptoms, and importance of early reporting. This must be done by October 2001 and within 14 days after a new employee is hired.

Beyond that, it appears that the report of an MSD triggers further – and extensive – action. When a worker reports the signs or symptoms of an MSD, the employer has seven days to determine if the job meets OSHA’s definition of an MSD "incident" and if it exposes the worker to recognized risk factors. By OSHA’s definition, an MSD incident must be work-related and must either last more than seven days or require medical treatment and time off work or assignment to lighter duty.

For additional information on the new rules, including OSHA’s job analysis tools and a sample employee information sheet, go to www.osha-slc.gov/ergonomics-standard/.

The combined Social Security and Medicare tax rate remains at 7.65% for 2001. However, the Social Security taxable wage base (for the 6.2% Social Security portion of the tax) rises from $76,200 in 2000 to $80,400 in 2001. The Medicare portion of the rate remains at 1.45% and applies to all wages. There is no maximum on the Medicare portion.

The U.S. Environmental Protection Agency (USEPA) has informed MSSA that it is highly unlikely that there will be a regulation preventing the sale of R-134a to consumers effective for the upcoming 2001 summer cooling season. EPA did make it clear that they are moving forward with their proposal, issued in June 1998, to restrict the sale of R-134a to only individuals certified to work on vehicle air conditioners.

Although not an ozone-depleting substance, EPA believes that R-134a, the substitute for R-12, is a global warming agent and would be more likely to be vented into the atmosphere if available to untrained consumers.

In the wake of overwhelming public and media scrutiny, Congress has passed the Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act.

Major provisions of the new law include:

1. Within 120 days of the enactment of the Act, the Secretary of Transportation shall initiate a rulemaking proceeding to establish early warning reporting requirements for manufacturers of motor vehicles and motor vehicle equipment;
2. A person who violates the Act would be subject to a civil penalty of not more than $5,000 for each violation up to a maximum penalty of $15,000,000, or subject to a criminal penalty of imprisonment of not more than 15 years, or both;
3. Title 49 of the Unites States Code would be amended to stipulate that in the case of a remedy program involving the replacement of tires, the manufacturer would be required to develop a plan to try to prevent replacement tires from being resold and to limit the disposal of replaced tires in landfills, particularly through shredding, crumbling, recycling, recovery, and other alternative beneficial non-vehicular use;
4. The Secretary of Transportation shall conduct a rulemaking, by June 1, 2002, to revise and update the tire standards published at 49 CFR 571.109 and 49 CFR 571.119;
5. Within 30 days of the enactment of the Act, the Secretary of Transportation shall initiate a rulemaking proceeding to improve the labeling of tires;
6. Within a year of the enactment of the Act, the Secretary of Transportation shall complete a rulemaking for a regulation to require a warning system in new motor vehicles to indicate to the operator when a tire is significantly under inflated; and
7. Within 30 days of the enactment of the Act, the Secretary of transportation shall undertake a comprehensive review of all standards, criteria, procedures, and methods in determining whether to open a defect or noncompliance investigation.

In a major victory for small business, the House and Senate passed legislation to reinstate the installment method of accounting for accrual basis taxpayers. President Clinton is expected to sign the bill.

The House and Senate passed the bills by voice vote shortly before Congress adjourned.

The installment sales language corrects inadvertent changes made earlier this year to the accrual method of accounting. Those changes required the seller of a business who received payment via installments over a period of years to pay the full amount of taxes due on the sale in the first year.

Left unchanged, this would have hit small businesses particularly hard and would have jeopardized an untold number of business purchases. This is a tremendous victory for our members.

Congress adjourned without passing legislation to raise the federal minimum wage.

Once considered to pass, a minimum-wage increase was approved by both the House and Senate earlier this year. But Democrats and the White House opposed the small business tax and labor breaks included as offsets for shouldering costs of the federal mandate.

Although President Clinton had previously threatened to veto "gray market" tobacco legislation, he has now signed a new bill containing revised language. The measure bans the sale of "gray market" cigarettes in the U.S. and closes a loophole that hurts legitimate tobacco retailers.

In a major victory for Service Station Dealers of America (SSDA), Congress has passed an amendment to the Veterans Affairs, Housing and Urban Development (VA-HUD) appropriations bill that will prohibit the Environmental Protection Agency (EPA) from enforcing controversial new air quality standards until the U.S. Supreme Court rules on the regulations.

SSDA had twice testified in opposition to the regulations and was involved in an amicus brief supporting the May 1999 federal appeals court decision to strike down the EPA standards regulating ground level ozone and particulates, according to Roy Littlefield, SSDA’s Executive Vice President.

The EPA responded to the ruling by appealing the decision to the Supreme Court and then notified states last spring that they had to begin to designate areas that fail to comply with the challenged standards or the agency would make such designations itself. Once an area is designated in non-compliance, a series of fines and the withholding of federal funds are triggered.

"Over the strong objections of the Environmental Protection Agency, President Clinton is expected to sign this bill into law," Littlefield said. "SSDA has long opposed the EPA’s national ambient air quality standards because of its impact on the service station and automotive aftermarket industries. We will continue to fight for reasonable standards.

One of the worst possible assumptions you can make, assuming that you have interests in issues before the legislature, is that someone else is effectively representing your feelings to legislators. A close corollary to this is the assumption that it's all right for you to not get involved with the legislative process because those who have opposing views probably aren't involved, either. Add either or both of these assumptions to a lack of basic understanding of how legislators make decisions and you have one good recipe for legislative disaster.

Legislators understand involvement above most other concepts. The people they see or hear from most often are very likely to have the greatest impact; be one of them, and success may be yours-slack off, and you're likely to fail.

"But we have a lobbyist" you say " and he or she should be involved so that we don't need to be." This is, in polite terms, hogwash. Effective lobbyists are recognized at the capitol for the things they do best; understanding the process, knowing the people and knowing when to call in the folks that employ them-the ones who will be most affected by legislative action.

Legislators need and appreciate effective lobbyists for what they CAN do, but legislators and lobbyists all know that lobbyists (as well as legislators!) have their limitations. Rational human beings cannot expect legislators to know all the facts on all the issues. Similarly, even good lobbyists take a back seat to inform and involve industry members when it comes to presenting convincing arguments to legislators; lawmakers simply must hear from the industry members-the people in the trenches.

Please always assume that the 'bad guys'-those who represent legislative wishes contrary to yours-are ALWAYS involved in informing legislators. Then put yourself in a legislator's shoes; if you hear from only one side on an issue -and not the other, what would YOU DO?

Especially if you know that a lobbyist has tried to elicit industry responses on the issue and you have received none, you would make the reasonable assumption that the 'other side' knows the situation and simply doesn't care.

Those who have opinions on issues continually barrage legislators. If your opponents are among them and you aren't, you lose. If you're involved, too, you stand a chance and it's still no guarantee that you'll win. If you lost because of non-involvement in the last session, take heed. Lick your wounds, determine where you need to do more, then get going; the 2001 legislative session began today!

Call Greg Headrick if you have any questions or concerns. He will be at the Capitol!

What is a Premium Audit? It is the examination of your employee base and all records that relate to the policy to determine the actual exposure for the workers’ compensation and employers’ liability coverages provided.

Why is an Audit Necessary? The advance premium you pay for your workers’ compensation policy is based on best estimates of total remuneration for the policy period. An audit determines the actual exposure from which the actual earned premium is calculated. If necessary, an adjustment will be made – if you paid too much, a refund will be sent; if actual exposure is higher than estimated, you will receive a bill for the difference.

Who will conduct the Audit? If your policy falls into the parameters requiring a physical audit, a Field Representative will contact you for an appointment. If your policy is selected for a voluntary audit, a Field Representative will send the necessary forms to you for completion. You will then mail the completed forms.

What records will be needed? The Field Representative will need to look at all of the records that relate to your policy premium. In most cases, sufficient information may be obtained from two or more of the following:

• Journals
• Ledgers
• Tax Reports such as quarterly 941 forms and/or state unemployment reports
• Individual Earning Cards
• Certificates of Insurance for subcontractors engaged

In the course of the audit, you may also be asked some questions about your records and operations. This helps us understand your business better and assures proper classifications are applied.

How should my records be kept? Often there are reductions allowed which can be applied to your policy if your records provide the necessary details. Premiums for workers’ compensation policies are generally based on payroll, which is defined as total remuneration for services performed by an employee.

Remuneration simply means money or substitutes for money. In Minnesota that includes:

• Wages or salaries
• Bonuses including stock
• Statutory payments
• Payment for piecework
• Value of meals
• Certain other $ substitutes
• Commissions or draws
• Overtime pay*
• Tool allowance
• Value of lodging
• Store certificates
• Annuity plans

Vacation, holiday and sick pay are included. Payments for active military duty, tips, payments by employer to group insurance or pension plans, certain "perks" and severance pay are not included.

*Overtime: Overtime means those hours worked for which there is an increase in the rate of pay (not "shift differential"). The extra amount you pay in excess of straight time pay can be deducted if your records adequately verify it. You must keep records that show overtime pay separately by employee and in summary by classification.

Division of Payroll: You may divide your payroll among the classifications most closely fitting the work actually performed by each employee in a four hour block or more when your records can be verified to provide adequate support for such a division.

Supermarket chain Kroger's is fairly new to the gasoline marketing business but jobbers doubt that a lack of marketing savvy lies behind the company's strange pricing tactics in the Midwest. Rather, they think the Cincinnati-based chain has been hoping to hoodwink jobbers into not matching its prices at the pump.

In October and November, Kroger's added pumps to two of its supermarkets in Ohio, in Milford and in Mount Orab, posting prices that were about 10 cents below street. Believing they were matching Kroger's price, local jobbers instantly lowered their prices. It wasn't 'til some days later that one canny marketer checked out the Kroger's unbranded station and was amazed to see that the price posted at the pump was 10 cts below the street sign. Neither was it a situation where customers were getting discounts, he says.

"I thought at first that it was because the local Kroger's manager didn't know what he was doing," says the jobber. "But then another Kroger's 15 miles away from my office did the same thing for about four days. I can only assume that they thought they'd hoodwink marketers and, for a while, it worked."

Kroger's may have hoped to avoid a pricing war with local majors, such as BP, which last year took on Sheetz in northeastern Ohio when that chain started pricing below cost. (Ohio has no below-cost law.)

Whatever the reason, Kroger's prices are no longer at or below-cost. Last week, the chain was posting $1.45 at its unbranded pumps, 6 cts over laid-in costs of $1.39.

C-stores, which only started selling gasoline in the '70s, now sell about 60% of the nation's fuel, says the National Assn. of Convenience Stores.

Gulf Refining opened the first drive-up station on Dec. 1, 1913 in Pittsburgh, selling 30 gals. that day. A lot has changed since then, says NACS.

C-stores now offer pay-at-the-pump, internet-enabled dispensers and menu boards allowing motorists to order meals prepared inside the store.

In 1971, average store volume was 9,200 gals/mo. Today, a typical store has more than eight fueling positions and sells 110,500 gals/mo.

In 1971, 1,340 stores, or 6.8% of all stores, sold fuel. Most recent data show that now more than 88,000 stores, or 75%, sell fuel, which represents 57% of their sales.

Albertson’s, already a dominant figure in the hypermarket arena, expects to get significantly bigger in 2001.

Albertson’s is the second largest grocery chain in the country, after Kroger, and has the clout to expand gasoline sales quickly. However, it is finding it hard to compete with Wal-Mart and Costco, which it blames for recent poor profit showings.

And here comes Target. Taking its lead from Wal-Mart and Kmart, the discount store giant is now said to be "thoroughly exploring" the possibility of entering the retail gasoline market.

Target isn’t talking, but sources say that the Minneapolis-based chain is seriously studying two options – whether to own and operate its own manned or unmanned locations, or to have an operator run fuel centers at some of its sites on a profit-share basis.

"It makes sense for Target to sell gasoline, especially when you consider that sales have been soft, and gasoline is a great traffic-builder," says one retail analyst. The company is expected to study the issue for another three to six months before deciding whether to launch a market test.

Wal-Mart already has nearly 200 stations through partnerships with Murphy and Tesoro, and recently inked a deal with Sunoco that will give it as many as 140 more. Wal-Mart has also said it expects to expand its Murphy-operated sites to 600 by 2003.

Rival Kmart will test fuel sales at three Michigan sites before deciding whether to roll out the program on a larger scale.

Murphy will spend $692 million on capital improvements next year, 18% more than this year.

Downstream, Murphy will allocate $168 million for refining, marketing and transportation, a 7% jump. The money will be spent primarily on the company’s Wal-Mart program and to start a "clean fuels" project at its Meraux, LA refinery.

About 300 low-cost stations at Wal-Mart Supercenters will be in operation or under construction by the end of 2000, with another 100-125 slated for 2001.

Despite disappointing earnings results, supermarket chain Supervalu intends to push ahead with a full-scale entry into the gasoline retailing market, following a successful test at 12 supermarkets earlier this year.

The Minneapolis-based company, the nation’s 10^th largest supermarket retailer and the food industry’s largest distributor, is expected to add fuel to all new sites, and to retrofit some of its existing outlets as well.

Supervalu has about 1,150 stores in 38 states, more than half of which are operated by franchisees. It is also the primary supplier to roughly 3,300 supermarkets and 55 Cub Foods units, and a secondary supplier to about 2,500 other stores, including 1,350 Kmarts. Revenues for the fiscal year were $20.3 billion.

Royal Dutch/Shell Group has proposed a plan to join with Saudi Arabia’s state-owned Saudi Aramco to buy out the U.S. marketing and refining operations of Texaco, Inc.

Earlier, Texaco announced plans to merge with Chevron Corp. It is expected that the Federal Trade Commission will require Texaco and Chevron to exit from some U.S. downstream operations.

Shall and Saudi Aramco are partners with Texaco in Motiva, an eastern U.S. refining and marketing business. Shell and Texaco are partners in Equilon, which covers the western United States. Analysts and bankers have estimated the value of the Texaco stakes in a range between $3 billion and $7.5 billion.

"A transaction framework and conditions have been put to Chevron and Texaco which allows the parties to acquire Equilon and Motiva," a Shell spokesman said, adding that bringing Equilon and Motiva under a simpler ownership structure would help reverse their underperformance.

Citgo has unveiled a new image incentive plan for jobbers that offers a maximum 3cts/gal over four years, depending on location volume and length of time a unit is branded with the company. The new program provides five tiers of financial aid for marketers building or revamping retail outlets, plus more cash for interstate units and a pay-at-the-pump allowance, as follows:

• Marketers branding new or existing outlets receive 3 cts/gal for four years, providing the unit moves 200,000 gals/mo minimum and they fly the Citgo flag for 10 years. Stations selling 125,000 gals receive 2.5 cts for four years on a 10-year commitment. Those moving only 100,0000 gals/mo receive 2 cts for four years for a similar 10-year commitment. If the site is small, moving only 75,000 gals/mo, the marketer will receive only 1.5 cts for three years, with a seven-year commitment required. The same three year/seven-year commitment applies to outlets that move only 50,000 gals/mo, but jobbers get just 1 ct/gal.
• For interstates, Citgo pays 5 cts/gal over four years for a 10-year branding pledge. The 5 cts applies only to new units, but can be used together with aid packages paying 2.5 cts and 2 cts/gal.
• For pay-at-the-pump, Citgo will allow marketers to claim an additional 2.5 cts/gal for three years, but card-readers must be installed and activated in all dispensers and the jobber must make a five-year commitment.
• Citgo says it will calculate all allowances on actual gasoline volumes at a station, and the maximum annual gallonage eligible for cash incentives is limited to a growth factor of 20%/yr of annual contract volume attributed to the location. In addition, jobbers won't receive cash in any quarter that they fail to lift 90% of total contract volume, or if the station fails to score at least an 85% on Citgo's image evaluation.
• Marketers will be required to repay incentive cash if they de-brand an outlet early. Re-branding after less than four years means a marketer must repay 100% of any allowance cash received. After less than five years, he repays 80%, less than six years, it's 60%. The repayment number drops to 40% at fewer than seven years, 30% at fewer than eight years, and 20% at less than nine years. If the site is re-branded after less than 10 years, he must pay back 10%. Similar payback provisions are required for stations receiving three years of funding, and for pay-at-the-pump.

Energy think-tank the Brattle Group says consumers should expect tight supplies and high prices for natural gas and heating oil this winter, and further prices spikes and service disruptions for electricity next summer if the U.S. does not allow energy markets to work properly.

Among its recommendations: that policy-makers focus more on consumers and less on harassing suppliers, and that EPA be made to work realistically and collaboratively with the refining, auto, and utility industries to develop a feasible pace of compliance.

Safeway is looking at a plan that could add 200-300 fueling units to its chain by the end of next year.

The company, which already operates 32 gasoline outlets, has been testing fuel sales in Arizona and California under its corporate banner, and may roll out the concept next year. It is also considering adding fuel to some of its subsidiary chains, which include Dominick’s in Chicago, Von Companies in Southern California, and Carr-Gottstein in Alaska.

You're in the customer service business. And that means you not only need to know the right way to fix cars, run equipment or whatever, you also need to know the right way to serve customers. You need to know it, and more importantly, you need to practice it.

This article is the fourth in a series of nine that Newsline will publish in the coming months. It is suggested that you read through all of the ideas and select three that you find particularly relevant and meaningful and circle the number. Each time you complete/master one item, draw an "X" through its number and select a new item to work on in its place. Before you know it, your lists will be filled with crossed out numbers…and you'll be on your way to "walking your customer service talk."

"Walk the Customer Service Talk" Series - Article 4 of 9

61. Make sure your relationship-building activities reflect an understanding that the customer’s time is valuable. They’ll want it friendly, and they’ll appreciate it being fun. But chances are they’re not looking for a 15-minute chat about the weather. Look for the quick-hit opportunities to be personable, and then move on to serving them.
62. Take your cue from the customer. You will come across a few customers who just want to take care of business and then get out (or hang up). You know them – the ones who give short, monotone answers to your best "get the relationship going" questions. For those folks, a good relationship with you means quick, efficient, get-down-to-business service. So that’s what you need to give them…along with a cheerful smile.
63. As long as they’re not abusive, let customers with problems vent. Don’t interrupt. Telling you their complete story, and describing how upset they are, allows customers to release pent-up negative energy. The sooner they let it out, the sooner they’ll calm down and participate more productively in the discussion.
64. Be agreeable! One of the fastest and most effective ways to diffuse customer anger is to agree with them. Saying, "you’ve got a right to be mad," or "I can understand why you’re upset – I would be, too" can literally stop an upset customer in their tracks. Their case has been made…the fight they expected never happened. And, if the next thing you say is, "Let’s see what I can do to make it right," you’ll immediately take the discussion from negative complaining to constructive problem solving.
65. Ask the customer to identify the solution they would like. Just be careful you don’t say things like, "So, what do you want me to do about it?" Use a more tactful approach, like: "We want you completely satisfied. What would you consider to be a fair solution?" If you can meet their request, do it! If you can’t, at least make sure you tell them what it is you can do.
66. Don’t play the blame game! Blaming the customer for the problem won’t get you anywhere. And blaming others in your organization is bad form. The fact is that most customers couldn’t care less about your "innocence" – they just want their problem solved. So, accept responsibility as a representative of your company and place your efforts on problem solving.
67. Snap to attention! Give customers who have complaints and problems your undivided attention. Stop whatever else you’re doing and focus on them. And, if you’re face to face, maintain eye contact and be conscious of your body language. Remember, you’re trying to restore this person’s confidence in your organization.
68. Two more Don’ts: don’t make excuses, and don’t quote your policy manual. Once again, customers aren’t interested. The absolute best thing you can do is Focus On The Fix!
69. Use "I" in place of "you"! One way to minimize tension is to keep your verbal finger pointed at you rather than the customer. See if you can feel the difference between these statement combinations:

What do you need?

~ What can I do to meet your needs?

You didn’t complete the form.

~ I need a little more information.

You need to call this number.

~ Let me give you a number…

70. Use the customer’s name to stop abusive ranting and raving. Calmly say, "Mr. Jones," and then wait. You might have to say it again, but most people will stop when they hear their name – and they’ll typically respond with "Yes?" You’ll then have the chance to steer the discussion toward more productive problem solving.
71. Help the customer feel in control by asking rather than telling. Instead of saying, "I need to put you on hold while I check," try "I’d like to put you on hold so I can check … is that okay?" As long as you’re doing something to help them, most customers will say, "Sure, go ahead."
72. LEAP into handling customer complaints:

Listen – focus on understanding their concern.

Empathize – imagine yourself in their shoes.

Acknowledge – tell them you understand.

Pamper – go the extra mile to make it right.

73. Keep a notepad close by. As soon as you sense that a customer has a problem or complaint, start making notes. Customers can get testy if they have to tell (and relive) their story twice because you failed to write down the specifics the first time.
74. Remember: "You" doesn’t mean you! When customers are frustrated, they often say things like, "You screwed up my order!" Most of the time, they’re using "you" to mean your organization. Occasionally, they mean you the individual – the specific representative of your organization. In neither case do they mean you, the person. How could they? They don’t know you. Their frustration is business related … so don’t take things personally. When they say "you," try hearing "us."
75. Never end with "no" or "we can’t." Those represent non-service. Always recommend a solution or compromise.
76. Be a fantastic fixer! Take pride in being able to solve customer problems. Remind yourself that anyone can handle the easy stuff – it takes a real pro to successfully tackle the tough issues. Keep a "scorecard." Every time you fix a problem for someone, put a mark on your card. The more marks you have, the more fantastic you are!
77. Develop the habit of "compartmentalizing." Insulate one customer interaction from the next. Take a lesson from professional golfers, who discipline themselves to forget the last shot and focus only on the next one. Don’t let a challenging encounter spill over into the next customer contact … or the rest of your day.
78. Make it a contest. Think of problem solving as a game. You win by turning an upset customer around and making them happy – you lose if you lose your cool. Every time the customer says or does something negative, you counter with a positive technique. Say to yourself, "There’s no way this customer is going to trap me into doing something counterproductive." The interesting thing about this game is that when you win, so does the customer. And if you lose, so does the customer!
79. Adopt the two-person rule. Never make a customer talk to more than two people in order to resolve a problem. If you’re the second person to deal with the customer, you "own" them. Either solve the problem immediately, or get a phone number and a convenient time to call back.
80. After you’ve resolved a customer’s complaint, put a note in their file indicating that they should receive special attention the next time they do business with you. The last thing you want is for them to have two bad experiences in a row. If they do, chances are you’ve lost them for good.

Lakeville, MN

Ronald Ahl, Jerold Lane

This is the largest independent auto service group in Dakota or Scott County. They have 24 bays for auto repair and employ 65 people. Welcome!

Minneapolis, MN

Mark Elliott

Elliott Towing has been in business for 16 years. They have four trucks and are in the process of expanding. Best wishes to Mark and his crew!

Plymouth, MN

Barry Balzer

Our newest carwash member offers the Vector RapidWash and Belanger lines of equipment. They have been in business since 1993 and offers service unparalleled in the industry.

Edina, MN

Joe Kammermeier

CIT is the nation’s largest SBA lenders.

They provide high leverage and long term financing for owners and/or operators in this industry.

Spring Park, MN

Bud Groth

All Star has been in the pre-paid phone card business since 1994. They offer competitive rates and a great program for MSSA members. This new member was referred to MSSA by Kevin Lang, Lang’s Texaco of Edina.