ALL CUSTOMERS
The transition from low sulfur diesel fuel (500 ppm) to ultra low sulfur diesel (ULSD) fuel (15 ppm) has begun as terminals are receiving product in anticipation of the mandate that the terminals have ULSD available by September 1, 2006. You should begin to draw inventories down and turn the product over 3-5 times before the October 15, 2006 deadline. The Petroleum Marketers Association of America recommends that pumps not be labeled ULSD before October 15, 2006 to ensure that product meets specs. Texor will be putting ULSD decals on your pumps prior to October 15, 2006. If you have any questions concerning the transition, please call Dan Goding at our office. As of this printing ULSD is available from the following suppliers:
We are seeing an increased number of customer complaints since gasoline prices have risen so sharply. During this time of high prices, please counsel your employees to be respectful of the customers as to not drive them to your competition by giving them bad or rude service. We understand that some customers view the dealers as the ones responsible for the increases in gas prices but we still have to remember that the customer deserves our respect.
CITGO PETROLEUM COMPANY
The Citgo board of directors has approved the decision to withdraw from the marketing of motor fuel under the Citgo and Mystic trademarks in 10 Midwestern states and several Metropolitan Statistical Areas (MSAs) in four additional states by the end of March 2007. Although the withdrawal area is geographically large, it is expected to affect only 14 percent of Citgo-branded locations nationwide. Global market conditions persisting for an extended period, and anticipated to continue in the future, required this decision. Citgo does not itself control the forces driving the global gasoline market such as increased worldwide demand, limited crude supply and fixed refinery capacity. The problems facing U.S. gasoline marketers such as Citgo could potentially be solved in the long-term by a combination of initiatives, including conservation, use of alternative fuels, increased global crude supply or reduced demand, new or expanded refinery capacity, or a combination of such factors. This will not affect the Chicagoland market in any way.
With school starting just around the corner you should make sure you are promoting the Citgo cash cards. These are great gifts for students heading back to college or gifts at any time. Remember, there is no dormancy fee meaning that the original value of the card is retained at the original purchase value and there is no expiration date. You also receive a 1% discount on the purchase of the card. Some savvy dealers pass the 1% on to the customer to drive loyalty. Make sure you have plenty of cards available.
August 1, 2006 is the rollout of the new Citi Platinum Select CITGO MasterCard promotion. The new co-brand card offers a 20% rebate on all Citgo purchases for the first 60 days and 4% thereafter. Rebates are limited to $50 per month. The processing fees are also lower on this card (1%). This is a great way to obtain new credit card customers and also save you money on the processing. Make sure you have the new POP materials and credit card applications in place.
MARATHON PETROLEUM COMPANY
Marathon is continuing with its “Customer First” mystery shop program. You will have quarterly “undercover” visits to shop your location. Scores of 85% and higher are considered passing. You should be using these results as a barometer of how your location and employee’s are being seen through the customer’s eyes. Go the extra mile and give your employee’s an incentive to keep your location in tip top shape. How about a gift card to them for a 95% score or higher? Uniforms and name badges are a requirement, and two areas’ that seem to score lower are meeting and greeting the customers and also dirty restrooms. The restrooms need to be checked every shift to make sure they are clean for the customer. Let’s try and get all our scores up to 95% or higher. The cleaner and more friendly you can make your location will only help you add to your bottom line.
Gift cards are another tool that should be used to promote your business. These make great gifts for college students heading back to school. Local businesses may want to purchase them as incentives for their employee’s.
EXXON MOBIL CORPORATION
Mobil has announced that it is extending its temporary credit card fee reductions through August 31, 2006.
The third trimester POP signage will be sent to your locations the week of August 17, 2006. Please make sure that the old signage is removed and the new POP is installed by August 31, 2006.