WPMCA: Four out of five gas stations are locally owned & operated

Contact:
Matt Hauser
Government Affairs Director
608.256.7555

Fair Marketing Laws create a competitive marketplace, local jobs & must be preserved!

Madison, Wis. (Feb. 16, 2006) – Studies show that 4-out-of-5 gasoline retailers in Wisconsin are independently owned and operated. Many are second- and third-generation family-run, one and two store businesses.

“Local owners depend on being able to compete in a free, fair and competitive marketplace,” commented Julie Yahnke, independent and single-store owner of Holmen Quik Stop, Inc., Holmen, Wis. “And, that opportunity is in jeopardy if the law that’s been in place since 1939 is repealed.”
That law, Wisconsin’s Unfair Sales Act, continues to have its necessity debated at the capitol. Yet, studies continue to highlight that the law saves consumers money at the pump, $28 million annually in Wisconsin. A recent study, by UW-Whitewater professors Dr. Mark Skidmore and Dr. Jimmy Peltier, also highlights that states with fair marketing laws create stronger and more competitive retail markets, thus creating a positive ripple effect in local communities — more jobs, more local revenue and lower markups at the pump.

Stop in any local gasoline station and ask the question, “How does Wisconsin’s Unfair Sales Act affect your livelihood?”

For more than 40 years, the Meffert family of Waunakee, Wis., has been in the petroleum industry. Today, two generations of the family, dad and four siblings, are working side-by-side, running Meffert Oil Co., along with nearly 30 employees.

“In Waunakee, with five gasoline and convenience stores in existence, Wisconsin’s Unfair Sales Act plays a critical role,” commented Randy Meffert. “Without the law, we would likely close our two stores, which would create impact consumers through loss of choice, convenience and low-cost gasoline. The law maintains a competitive and fair marketplace, which encourages independent entrepreneurs and families, such as ours, to enter the gasoline retail business.”

Don Morgan has spent nearly his entire life in the petroleum industry. At age 16, Don first began working at a local gasoline station. He purchased a Sinclair wholesale route in 1965 and opened a gasoline station along the route one year later. Today, three generations of the Morgan family are involved in the family’s business, Sunset BP/Amoco in Weyauwega, Wis., along with nearly 12 employees.

“Many challenges are on the horizon for local independent gas station owners,” commented Don. “However, as long as the market is allowed to remain competitive and fair, owners such as us will be able to compete and succeed.”

Ron and Sherri Counsell opened their first and only store, Borderline Inc. in 1994, at the northern edge of Watertown, Wis. Ron would tell you that the law creates a level and competitive marketplace that keeps them in business and ensures consumers have choice, convenience and low prices at the pump.

Young and energetic, Kristin Loehr and Mike Singh are entrepreneurs that wanted to own their own gasoline and convenience store. In November 2005, they found the perfect store in Beloit, Wis. In the three months following the opening of Sembhi, Inc. BP Gas Station, they have already been the victim of predatory pricing on several occasions. They have been forced to choose between watching their customers go next door or marking down their prices and selling at a loss, something they can not afford to do for a lengthy period of time. Thanks to Wisconsin’s Unfair Sales Act, the actions of selling below cost, which are illegal, were quickly enforced.

The facts about gas and convenience stores in Wisconsin are clear:

• Nearly 2,700 exist.
• 4-out-of-5 are locally owned, independent businesses.
• Nearly 60 percent are one-store operations; each delivers at least two times the economic impact of spending by national chains in the same communities.
• Many are family owned and operated.
• More than 90 percent have fewer than 20 employees, which totaled nearly 24,000 people in 2003 (most recent data).
• Nearly $320 million in payroll is generated and circulating throughout Wisconsin’s local communities, according to the 1997 census (most recent data).

“Based on all the facts, I question why there is so much focus on changing a law that’s working just as it was intended to,” commented Bob Bartlett, president of the Wisconsin Petroleum Marketers & Convenience Store Association. “The bottom line is Wisconsin needs more competition, more locally-owned businesses. Wisconsin’s Unfair Sales Act Law makes this possible and positively impacts local communities. The law must be preserved.”