Maintaining Faith in America

January 4th, 2010

With jobs being transferred overseas and business burdened with new financial challenges, more and more employees are struggling to survive.

Now I’ll be the first to admit that I don’t have a great understanding of the global economy, but there’s a disturbing trend of outsourcing jobs overseas, while at the same time hamstringing American business with higher costs, ranging from increased taxes to healthcare. I’ll quickly jump to the forefront and state—strongly—that these decisions are not working well and America is heading down a very slippery slope seemingly greased by people that do not have this country’s or the American workers’ best interests at heart.

The excessive burden on all businesses—especially smaller companies—that operate legally and have a love of this country is raging out of control. While I’ve long questioned the wisdom surrounding the systematic elimination of hundreds of thousands of American jobs and sending them to foreign countries, whether to nearby Mexico or across the ocean, here is what sets me off:  How on earth does it make long term sense to buy billions and billions of dollars of goods from China, then turn around and borrow our own money back, allowing China and others to literally buy America?

Competing for Dollars
The auto industry proved to us that competition is essential and makes for a better product. Most of us remember when you’d be well advised to trade in an American auto when the odometer approached 50,000 miles. Asian competition forced U.S. manufacturers to get better, and American corporations and American workers rose to the challenge.

What I’m talking about is that much-bandied, yet seemingly mythical, phrase called “a level playing field.” In this case the term “unfair competition” fits much better. How can we be allowed, let alone begin to justify, buying items manufactured by people forced to work in sub par conditions that would not possibly be allowed in the U.S.?

American manufacturers must comply with costly OSHA, EPD and a myriad of other state and federal rules and regulations that add heavily to the cost of each item sold. Most of us are guilty of taking advantage of a cheaper price for the newest electronic gadgets and who could blame us?

Let me pose a few more questions: Long range, how many Americans will be able to afford even the least expensive of items without more quality jobs in America? How will America be able to maintain the current standard of living that has been reduced and devalued with the debt load we’re carrying?  We have been the caretaker for the world since WWII. We must learn and practice that charity begins at home since no other country is willing to return past favors.

Industry Burden
This leads me to the convenience store and petroleum industry, which, in so many ways, is a crutch for American workers ranging from day laborers to high-ranking executives.

Convenience store owners can be proud of the track record the industry has created by providing more and more jobs with solid career paths, all while proving to be a solid backbone for America. We must continue to work to encourage a system that ensures the long-term stability of an America that the world needs. The current system is shakier and less secure than at any time in the last 50 years and it’s this generation’s time to rise to the occasion.

The industry has achieved a great record of success and has had to fight continuously to improve in the face of adversity. But this is a different type of battle, and while you may not feel it’s the industry’s to fight alone, ask yourself, “can I afford to have a large percentage of my customers unable to buy my goods?” This is not a time for standing on the sideline; this is a call that must be answered.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Celebrate the Reason for the Season

December 1st, 2009

It makes not one iota of difference whether you believe in Santa or celebrate Christmas to make a difference in someone’s life at this special time of the year. We all recognize that 2009—like no other year in the past 50—has created a genuine and critical need that provides both an opportunity for all of us to pull together to assist the charities that provide for the rapidly growing number of Americans that have fallen below the poverty line, in most cases through no real fault of their own.

As this challenging year draws to a close perhaps the best our downtrodden brothers and sisters can hope to receive is a simple ray of hope that 2010 is better than the previous 12 months. We all have an opportunity to fan those faint sparks of hope during this holiday season.

I can tell you firsthand that profits among convenience store and gasoline marketers have, for the most part, been sub par. But, the petroleum industry is made up of resilient and generous individuals and companies. This year you are asked to heed the call to do even more than your share to assist worthy charities. And that doesn’t mean you must spend a lot of money.

Over the years it has been proven to me over and over that, when given the challenge, our great employees will pick up the torch of fundraising activities and our super vendors are often willing to lead the way.

What’s more, wonderfully receptive though heavily burdened customers will feel the need to support a cause without stumbling All we have to do is ask. This year is not the year you can consider sitting on the sidelines and be comforted by that private somewhat guilt-reducing pledge of: “I’ll make up for it in 2010 when business improves.”  This is the year help is needed and the Christmas season is the vehicle to truly embrace the mantras “sharing is caring” and “give until it hurts.” It may hurt your wallet for a paycheck, but making a difference in someone’s life is a reward unto itself.

This plea is aimed at the scores of small chains and the very few larger chains that have not yet made charity an important part of their business model. The giving need not be huge. If we all get behind it, our collective numbers will bring great results.  Remember my friends that customers are drawn to businesses that are involved with the community.

Consider these simple examples for your own:
• One of our Green Oil stores is adopting a deserving family and providing food, clothing and toys for the children. It is truly better to give than to receive.
• For the fifth consecutive year another store, in lieu of exchanging gifts, is donating those dollars to one of our charity partners.
• All of our stores get involved with Atlanta’s Empty Stocking Fund. You might prefer Toys for Tots or a local food bank. Charity, understandably, begins at home.
• Over the past five years an average of five company operated stores and a caring Green Oil office staff has collected more than $100,000 for charity—something I am truly proud of.
• Through the years so much pride has been felt while ringing the bells for the Salvation Army. Catch the spirit and encourage employees to do the same.
My late father-in-law preached and was living proof that what we give, comes back to us tenfold. There is great need and countless ways to be involved. Choose one now and feel the true warmth of the holiday season.
Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

The Power to Turn a Life Around

November 6th, 2009

While this troubled economy lingers, there might never be a better time than right now to increase your efforts to make a positive difference in the lives of your employees.

As I reflected on gracious words attributed to a motivational speaker, the late professor Leo Buscaglia, I was both struck by his gentle touch, and simultaneously inspired by the power and wisdom contained in the message. It read:

“Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the power to turn a life around.”

It gave pause to bringing this “power” more into focus and use. It’s a power we all possess and quite obviously those of us in management are in the enviable position of being able to exercise this powerful influence over many others—a tremendous privilege that comes with an element of responsibility that we might tend to overlook or under use.

While we might not always be able to turn life around, we are definitely in a position to strongly influence others in a positive manner. We would all take pleasure and pride in knowing we played even a small part in that process.

Professor Buscaglia’s message assures us that it doesn’t have to be a tangible item or cost money. A simple pat on the back, an “attaboy or attagirl” or even a simple smile all go a long way toward making someone feel special. And, how long has it been since you, yourself felt special. Perhaps the best way to gain this winning feeling is by being special to others. It doesn’t cost a thing.

Don’t Wait Another Day
There might never be a better time than right now to increase your efforts to make a positive difference in the lives of your employees, especially now during an economy that is more troubled than most any of us can recall.

Right now we are witnessing more unemployment, underemployment, failed and failing businesses, which is troublesome for management, but maybe more so for frontline employees. But these troubled times offer us both challenges and opportunities.

It is indeed a great time to recognize and reward successes and efforts, no matter how small they seem. Believe me, family and employees alike will appreciate it. I’ve talked to a lot of employees lately, more customers and loads of truckers, and while they are bearing up on the surface, there is an undeniable tenseness and struggle going on just below their Mendoza line. It begs for stress relief.

Jobs are being lost at an unprecedented rate, homes foreclosed in record numbers, vehicles being repossessed and lights and heat being turned off. Hope is difficult to see and kindness is in short supply.

As we bear witness to this change in the American lifestyle and realize that we are indeed only as strong as our customer base, we struggle with how to do our part to make things better without damaging the trough that feeds the families that depend on us.

Let’s do all we can to help—tangible and financial if possible—but, there can be no doubt that we are all able to give that simple touch, caring smile, simple words of inspiration, and a listening ear, all of which have the power to touch the life of someone who needs it. As Forrest Gump might say “special is as special does.”

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Convenience Industry Takes Center Stage

October 11th, 2009

Tips, thoughts and reminders to enhance your NACS Show experience.

Move over Ringling Brothers because the NACS Show is indeed “The Greatest Show on Earth.”

Beyond the night life, parties, shows and the glitter of the Las Vegas lights lies, by far, the best and most comprehensive trade show and conference in the industry for convenience store owners and executives. If, however, you hope to achieve the kind of success to justify a trip to the NACS Show and, more importantly, bring back the knowledge, ideas and new product information that are crucial for getting your company to the next level, it is absolutely essential that you place a great deal of thought into the planning of your show.

There is a lot to do and see and without the proper planning, whether it’s on the trade show floor or in the educational sessions, you could miss the next big idea for your business. Develop that plan, make appointments and stick to your schedule. Choose in advance from the educational meetings menu those that will do you and your organization the most good.

If you are to pay homage to this magnificent show and its star-studded line up of vendors and industry consultants, you can’t waste time. And yes, it takes all three days to do proper justice to the more than 1,300 vendors spread across 400,000-square-feet of show floor space. If you examine the displays closely, you’re likely to find the next generation of products and equipment that will rule your stores for years to come.

With upwards of 22,000 attendees, the NACS Show also offers an abundance of networking opportunities. Your peers are coming to the show ready and willing to share ideas. Don’t be shy. The finest minds in the industry will be there and they are all very approachable. Remember, it’s not just first time attendees that can learn. NACS prides itself on having something for even the saltiest dog.

To manage the key insights you’ll be learning, I suggest bringing along a tape recorder. Sure you’ll stand out in the crowd, but, more importantly, you’ll be able to write a meaningful report to share with the rest of the management team when you arrive home. Think that won’t be appreciated?

Comfort Rules
Other tips to remember include getting to the trade show early to be among the first to check out NACS’ “Hot New Products” area. There are great ideas in there for category managers and chains of all sizes, and it opens before the trade show.

Perhaps my most practical advice to one and all comes via my dad, who in his 87th year, resplendent in his blue pinstripe suit and regimental tie, was standing at the edge of the altar as the soloist at my son’s wedding. Dad’s sneakers spoke priceless volumes regarding the importance of being comfortable. Heed this sage advice! Ladies, save that great new pair of shoes for the evening. Comfort rules on the show floor.

And to our wonderful vendors, and I do mean that, it is extremely frustrating to wander through your booths while you and your fellow employees are carrying on conversations in groups of four. It happens every year and is quite counter-productive. Let this be the year we see great improvement in this troubling area. Retailers are on the show floor to learn about your products and how you can help us improve our businesses and be more efficient. Making us wait to hear your message is a bad a sign. If you make us wait in your effort to get us to be a customer, how will you treat us should we become a customer?

Lastly, don’t forget your business cards. Vendors will be scanning badges, but scanners sometimes malfunction and business cards don’t, plus they are great to exchange with the people you meet.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

FDA Clarifies Tobacco Ban

October 11th, 2009

Flavored products including cigarettes, RYO and loose tobaccos and rolling papers are no longer legal in U.S. stores; administration said it would look at “little cigars” and similar products on a “case-by-case basis.”

The smoking lamp on the majority of flavored tobacco products sold in convenience stores has been extinguished, but the ruling has ignited a firestorm among retailers.

In a media briefing on Sept. 22, the Food and Drug Administration (FDA) issued additional information on its far-reaching ban of flavored cigarettes. The salient points of the ruling, which went immediately into effect, include:

• Cigarettes containing an artificial or natural flavor (excluding tobacco or menthol) that is a characterizing flavor are banned.  The banned characterizing flavors include an herb or spice, strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut, licorice, cocoa, chocolate, cherry or coffee.

• Loose tobacco and roll-your-own (RYO) tobacco intended to be used in cigarettes can continue to be sold provided that the tobacco does not contain a characterizing flavor that is banned under the new FDA law.

• Cigarette rolling papers and cigarette filters for use in RYO cigarettes that contain a characterizing flavor are banned. Only those cigarette rolling papers and cigarette filters that do not contain a characterizing flavor are legal to sell.

• The advisory published by the FDA continues to take an ambiguous position regarding whether flavored little cigars are banned. The FDA essentially repeats the sentence that it included in its letter issued on Sept. 14 and states in the advisory that “the ban applies to all tobacco products with certain characterizing flavors” that meet its definition of a cigarette under the new Food, Drug and Cosmetic Act (FDCA) “even if they are not labeled as cigarettes or are labeled as cigars or as some other product.”

At presstime, when questioned flatly on whether the flavored tobacco ban includes flavored little cigars, Dr. Lawrence Deyton of the FDA refused to give a definitive “yes” or “no” answer. Instead, FDA lawyers said the administration would look at “little cigars” and similar products on a “case-by-case basis.”

• Pipe tobacco, that according to the FDA is bona fide pipe tobacco, is not banned.

Under the new law, the agency has broad authority to regulate the marketing and manufacture of tobacco products, but cannot ban regular cigarettes, cigars or chewing tobacco. By January, manufacturers must submit information to the agency about ingredients and additives, and by July, the industry will be barred from using terms like “light,” “low” and “mild” on products. The ban is the first major step taken by the FDA since the agency was given jurisdiction over the tobacco industry in June.

Swift Response
Retailers fear the FDA’s involvement in tobacco sales will have lasting ramifications.

“While the FDA’s initial foray into tobacco’s already much troubled and diminishing business might be labeled as somewhat mild given that most cigarette manufacturers do very little with flavored cigarettes, I do feel this is just the tip of the iceberg,” said Jim Callahan, a retailer with more than 25 years of experience and president of Convenience Store Solutions, a Georgia-based consulting firm. “Overall, I think the industry should have done more in its fight against the FDA governing the tobacco industry, which may be a short-term gain for some, but will have severe long term implications for the entire industry.”

Suppliers quickly responded to the FDA. Kretek International Inc., which imports Djarum-branded tobacco products, filed a request for declaratory judgment against the FDA in Washington, D.C.

Earlier, R.J. Reynolds, seller of Camel cigarettes, and some other tobacco makers filed a lawsuit against the FDA saying their free-speech rights have been violated by the administration’s authority to regulate tobacco. Reynolds said it seeks to protect its right to communicate with adult consumers.

Hitting the Customers’ “Sweet Spot”

September 6th, 2009

The ability to offer outstanding service remains the industry’s biggest asset. Do whatever it takes to exceed expectations.

Doing a late night check on our new Huddle House restaurant attached to a quite awesome BP travel center, I arrived just in time to tackle the concerns of a pretty tough and very tired truck driver getting in from a rugged 12 hours on the interstate.

He related that he did not feel that his server, one of our very best, was adequately friendly to him. I sat down to listen first, than talk with him, for over the road drivers are the heart of our business at Green Oil and truly the heartbeat of America.

Toward the end of our conversation, I was feeling only a C+ grade for my efforts despite my magnetic personality and matchless charm. Failure for me is never easily accepted. I asked him to excuse me for a moment and went into the c-store section and returned with a single king-sized Reese’s bar, which helped produce a very happy customer who promised to return.

This customer was tired and road weary and merely needed a little extra respect. Reese’s was the vehicle I chose to sweeten his day, and it worked. Customers need to know we care. In this case, it took just a $1.50 candy bar. But let’s examine the situation a little closer.

Using the same tried and true formula that I’ve used for many years, I determined the average merchandise sale per customer—adding in the average fuel purchase—and the result showed that the average value of a single customer today amounts to almost $2,500 in sales per year.

Service First Industry
We all know when you factor in that happy customers will inform five other people about their good experience and unhappy ones are much more likely to tell 10 others, the overall influence of that one customer scares the heck out of me to the tune of as much as $40,000. In those terms, the candy magic was well worth the investment.

I’ve said before that candy is the only consistently true happy purchase a c-store customer makes. I also use this tactic to reward servers, cooks, cashiers and other customers. In the past, we’ve also used Tootsie Pops at our laundry. Children quite obviously love them, but you’d be amazed how well they go over with teens, adults and even seniors.

I’m here to tell you what you most likely already know—your business can’t survive pleasing just the easily satisfied. Today’s economy demands that we consistently make an effort to exceed all customers’ expectations.

To achieve a truly high level of success, we must be able to handle the challenging consumers on a consistent basis.  The first key to successfully handling these situations is pretty simple: have someone greet that customer quickly and flash them a world class smile. Smiles are indeed a special language that transcend all nationalities and often eliminate the need for the spoken word.

A crucial key to achieving this kind of success level through your employees is to make them understand that quite often they have not done anything wrong but, perhaps at the same time, they have not done anything overly right either.

Cashiers must learn that a customer’s bad mood is usually not at all personal, rather the results of a bad day, financial troubles, etc. While it’s still not going to be fun dealing with the challenging customer, turning their day around is really worth the effort. In baseball parlance, it’s the equivalent of a game winning hit. For me, being able to compete in this wonderful game keeps me excited and makes getting up each morning a reward instead of a task. Let’s pass the good thought on my friends.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Mind Control: The Road to Success and Rewards

August 1st, 2009

Fostering determination, desire and a great attitude in employees is what allows cashiers and middle managers to rise in senior management’s eyes.

Saturday is my “honey, I’ll do it today” day. To be candid, though, my wife is much better with home repairs than me. We tackled regrouting an entire bathroom and my task was to remove the old grout. It appeared pretty simple on the surface, but boy, was I wrong.

I’m more than a bit embarrassed to tell you I was sweating like an old war horse in mere minutes. In almost no time, I discovered my own mind was whispering all kinds of defeatist phrases to me, such as, “you might want to take a break” and, my favorite, “if you eat a little something it’ll give you some extra strength and energy.” Isn’t the mind supposed to be an ally? Why the negativity and not a few positive thoughts? It should have uttered just one word: ”wimp.”

If we are truthful, this type thing happens to all of us, and more frequently than we’d like to admit. There’s nothing wrong with it if we recognize and control it. While I labeled myself the smartest kid in the dumb row, I ended up with the valedictorian of the class working for me. I learned that having a great brain is one thing, controlling it is another.

For some of us a great work ethic comes naturally, especially if you’re among the very fortunate whose parents worked constantly with them and led by example. For most of us, though, a great work ethic is an acquired talent that often comes through desire and strong determination. Once discovered, it quickly becomes a life changing and exhilarating way of life that, when coupled with a great attitude, allows cashiers and middle managers to rise in senior management’s eyes. The best part is it’s never too late to acquire this skill.

Value of Training
For those fortunate enough to take part in training new and existing employees don’t overlook the importance of this often ignored area. It provides an exciting and rewarding avenue to explore for the development of future leaders.

My best advice for young employees is don’t listen when your inner self says, “really not feeling well, might be a good day to take a sick day.” Or, “only 15 minutes till the end of shift, let’s start kickin’ back.” Dismiss those negative thoughts and search out the positive.

The people who control their minds will ultimately control their destiny to the fullest and end up with the best paying and most rewarding jobs. Once you’re out of school, discipline and dedication beat smart and strong. Great attitudes always rule.

Once again, I’m in debt to my Hall of Fame mentor Bob Seng who, when hiring me, presented me a copy of the Edgar Guest poem he lived by.

“Someone said that it couldn’t be done, but he with a chuckle replied that ‘maybe it couldn’t,’ but he would be one who wouldn’t say so ‘till he’d tried. So he buckled right in, with a trace of a grin, if he worried he hid it, and he started to sing as he tackled that thing—it couldn’t be done, but he did it.”

Train yourself to recognize the voice—argue with it if you must—but never give into it. Seize the moment. Controlling one’s mind is an ever-present battle we all face, but hardly ever talk about. Be gracious in your victories and maybe once in awhile it’s OK to give in, especially if it involves ice cream and brownies.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Here Comes the Sun

July 6th, 2009

As the summer selling season hits its peak, operators must hone best practices to increase market share.

Gazing through my crystal ball, I see it boldly predicts summer 2009 is going to bring some very solid sales numbers, indeed greatly increased sales for much of the country.  Moreover, as you view this issue of Convenience Store Decisions you’re going to get an immediate indication of just how well that crystal ball of mine functions, as summer’s first big holiday—Memorial Day—passed with mixed results.

Those companies that were well prepared and did their homework will absolutely agree with my thoughts. Those that did not will surely be tempted to turn the page. To that I say, “Turn on those headlights and don’t let the summer selling season slip away.” As an industry, we must obtain a bigger piece of the retail pie by providing a wonderful shopping experience and great products.

Here’s my thinking: customers are sick and tired of all the doom and gloom talk. They want some fun, and we need to give it to them. Remember, customers:

• Need to forget their troubles, even if only for a short time.
• Can’t afford to travel or take trips as freely as they did in previous years.
• Need to be around family, friends and friendly people.
• Will party at or near their homes all summer long.
• Will drive to destinations two or more hours away and return the same or next day.

This all bodes especially well for convenience store owners. To increase your market share try to:
• Provide the upbeat and friendly atmosphere customers seek.
• Offer enticing specials on adult beverages–a key destination driver.
• Have an attractive salty snack offering to go with that cold beverage.
• Have a very good frozen drink offering, another destination for all demographics.
• Display an outstanding candy/novelty offering. Kids strongly influence their parents’ purchases.
• Post a fuel price attractive enough to make customers stop. This requires you to monitor the competition several times a day.
• Always have a super clean and well-presented store, inside and out.

Strive to Do More
In my mind, business is not nearly as difficult as many people think, yet not nearly as easy as many business owners try and make it. In other words, to achieve true long term success in this business, you must demonstrate discipline and determination on a consistent basis.

True discipline does not allow for your stores’ appearance to be anything less than great. Great determination assures that you are always on the cutting edge. The reward for this effort is called profit! Work on honing and improving these difference-making attributes. Teach your team how to be successful.

And let’s not forget to do a good job checking those ID’s on tobacco, alcohol and lottery this summer.

You have roughly three more months before fall begins. Will you be satisfied to continue to let the big boys eat away at your market share, or is your hunger sufficient enough that you will plan and execute?

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Harm Reduction: The Voice of Reason

May 5th, 2009

Despite all the naysayers, safer tobacco products are a reality convenience  store owners should embrace.

Great strides have been made within the last year to introduce new tobacco products that would, from my perspective, reduce harm when compared with traditional cigarettes. I must say, though, that I would have never thought the quest for harm reduction would be besieged with so much controversy and ignorance.
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Things I Learned on the Way to the Convenience Store

May 5th, 2009

The term “blessed” is trite but, in this case, true: My journey through the convenience store industry has seen me blessed with the friendships of so many special people. More than a few of them fit the mold reserved for greatness. I’d like to share some of the wonderful wisdom I’ve learned from them.
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