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Featured interview with Evan Pigford of LJT Management 
Q: Evan Pigford, a consultant with LJT Management, has extensive experience in the oil industry and some one who I’ve had the pleasure of working with in the field. Its great to have you here for this interview. Evan based on your experience in the Retail Fuels Industry, can you give us an overview of what it is, the current environment, and why you believe that this industry is currently a viable option for those looking to change careers? What are the benefits and opportunities?
Today’s marketplace environment for the investor is good, mainly because the U.S.A. needs and uses lots of petroleum daily. Prices and demand vary but mostly track upward. From June through September 2008 fuel price were at an all time high and station volume declined as most people tried to reduce the amount of money they were spending on gasoline. Some of the decline was linked to customers reducing non-necessary driving.
As an investor the main product you sell is gas, and demand is still very high. An investor must study and learn the business first before investing. There are several different models one can use to sell petroleum products.
1) Fuel only unmanned card lock
2) Fuel small store kiosk
3) Fuel medium store
4) Fuel large store
5) Fuel service bay (auto repair)
6) Fuel store, car wash, service bay
7) Truck Stop
All of these models, if run correctly, can be successful. However, much study is required to learn all of the skills to be a great service station operator. I can not over emphasize the fact that you must have specialized business experience, training, or consider working with a knowledgable consulting company like LJT Management. Without a clear understanding of sucessful business models, your business can experience both financial and operational problems that can result in business failure.
Q: So, for those thinking of entering the field, what are some of the most favorable entry points to consider and where can they get started? How about those that have existing business management experience, but it might not be in retail?
A: For people who want to look at the petroleum delivery industry as a career the opportunities are good. Most people who work in service stations that have stores start as cashiers. Turnover is very high. Therefore I can start as a cashier, learn the job and promote to assistant manager then manager quickly. Annual turnover of cashiers is approximately 100% with manager turnover close to 35%.
Q: What is the most important advice you would give an entrepreneur that is looking to start a retail business, or as you would say a ‘people business’, and what should they avoid?
A: Study all of the models and learn the business first. Have a real business plan in place, with realistic goals and enough operating capital to run at least 24 months. Find a location you would like and spend time studying the area including social economical and competition. This is a people business. I would strongly recommend that either you or the people you hire are people who like people. People can buy gas anywhere. People come back to a station where they are treated well.
Q: If you are a retail manager owner/operator, what is the greatest factor for business growth and success?
A: Execution of the operation and how good is your staff. All service stations sell gas, coke, candy, chips, and soda. What can you do at your station to make me want to come back? Is it the cleanliness of the station? Is it the way your store is merchandised? Is it the friendly sincere greeting I get each and every time I come in the store?
Q: How can one keep up with industry trends? Do you have any good resources?
A: Taking advantage of industry seminars and ongoing training helps keep retailers abreast of what is happening in other areas of the country or even internationally. Attending state and/or brand industry organization trade shows as well as the national trade shows are the easiest and most comprehensive way of seeing new products, getting access to industry trade seminars and current government issues that affect the convenience and gasoline industries. Here are some recommended resources:
- NACS (National Association of Convenience Stores) national industry trade organization and sponsor of the largest national trade show for convenience and gas industry, monthly publication
- NPN (National Petroleum News) monthly publication
- CSP (Convenience Store/Petroleum) monthly publication
- Convenience Store News-most comprehensive monthly trade publication
Evan, thanks for taking the time to share this information with our audience; it is both timely and relevant. I look forward to continuing the conversation, hearing audience feedback, questions and comments with those viewing this interview here at BeyondThePump.org.
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