Contact:
Bob Bartlett, President
608.256.7555
Fair Marketing Laws lead to more jobs, more competition – and yes, lower prices.
Madison, Wis. (Jan. 24, 2006) – A new study shows why the Unfair Sales Act is a good law for Wisconsin families. The study, “Minimum Markup Laws and Sales-Below-Cost Laws: Effects on Market Structure and Employment,” by Dr. Jimmy Peltier, Irvin L. Young Professor of Entrepreneurship and Professor of Marketing, and Dr. Mark Skidmore, Department Chair, Professor of Public, Labor and Urban Economics, Fiscal and Economic Research Center– both from the University of Wisconsin-Whitewater, concretely demonstrates how the law enhances competition, keeping prices lower and preserving local jobs.
“Our research indicates that consumers pay less at the pump because of laws like Wisconsin’s Unfair Sales Act,” stated Skidmore. “The lower gas prices are a result of retailers being able to compete on a level playing field. This strong, competitive retail market sector leads to more jobs, more local revenue and lower markups.”
The study conclusively found that states adopting minimum markup laws and sales-below-cost laws (SBC/MM), like Wisconsin’s Unfair Sales Act, maintain a stronger and more competitive retail market creating a positive ripple effect in local communities.
o The number of retail establishments has increased by approximately 3.2 percent over five years.
o Employment opportunities in the gasoline retail sector have increased 2.4 percent.
o Retail prices and markups are lower.
“In Wisconsin, the positive impact of the Unfair Sales Act law is clear,” commented Brandon Scholz, president and chief executive officer, Wisconsin Grocers Association. “More retail outlets, more employment and $28 million in savings for Wisconsin’s consumers.”
The new study findings, in combination with facts from other independent and peer-reviewed studies and government reports, validate that the Unfair Sales Act has great value for Wisconsin families.
“This study supports what we’ve known for a long time,” said Bob Bartlett, president, Wisconsin Petroleum Marketers and Convenience Store Association. “We now have three independent, academic studies – one of which has been peer reviewed and published – that show that fair marketing laws like the Unfair Sales Act are good for consumers, good for communities and good for Wisconsin.”
“In addition to savings at the pump, consumers benefit from these locally-owned independent gas and convenience stores that spend their profits within the local communities,” said Bill Oemichen, president and chief executive officer, Wisconsin Federation of Cooperatives. “These locally owned small businesses are also very involved in supporting their hometown communities, serving on local boards of directors and donating to local nonprofits.”
Some simple facts about gas and convenience stores in Wisconsin:
· There are nearly 2,700 gas and convenience stores. More than 80 percent are locally owned, independent businesses.
· Each locally owned, independent business delivers at least two times the economic impact of spending by national chains in the same communities.
· More than 90 percent of the gas and convenience stores have fewer than 20 employees.
· Many are family owned and operated.
· Nearly 60 percent of convenience stores with gas are one-store operations.
· Nearly 24,000 people were employed in the industry in 2003.
· Nearly $320 million in payroll is generated and circulating throughout Wisconsin’s local communities, according to the 1997 census (most recent data).
“The bottom line is that locally-owned, independent gas and convenience stores help build strong communities, and Wisconsin’s Unfair Sales Act Law makes it possible for them to stay local,” stated Oemichen.
