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By Bradley "Buzz" Calkins Jr.

For over 35 years we at Bradley Petroleum have prided ourselves on being the leading low-cost gas retailer in the Rocky Mountain region.

Currently, House Bill 1208, which has passed through the legislature on its way to the governor's desk, would repeal a portion of the Colorado Unfair Practices Act, specifically relating to below-cost fuel sales. If this bill is signed, it will jeopardize many retailers' futures and more importantly Colorado consumers' access to low-cost gas.

The lobbyists representing the large grocery chains and hypermarts, Wal-Mart and Costco, have been actively deceiving the public into believing that this legislation will promote competition and lead to cheaper gasoline prices when, in fact, these changes will have the absolute opposite effect, leading to a net loss for the consumer in both the short, and more importantly, long term.

These big-box retailers want to repeal the portion of the law that forbids them from bundling products. In other words, under the new law, they would be able to sell gasoline below cost as long as they made up the difference in another area of their store.

The discounted gas price is offered only to those who purchase a certain amount of other products. For example, a consumer may save "x" cents a gallon on gas, but will pay more than usual on other purchases. If this bill is signed, consumers will be paying more for groceries. It's easy to see why the big-box retailers want to use this gimmick. It makes their stores much more profitable and leaves consumers thinking they paid less when they really paid more.

It has been argued that large independents like Bradley will keep them in check even though the last few Mom and Pops will be forced out of business. The problem is that we cannot compete when they are allowed to bundle their services. When even the biggest gas station/convenience store matches their price and takes a loss on gas, it does not have a large enough store to make up that loss on other purchases. In the end, even the most efficient competitors like us will be forced to close, leaving the large majority, if not all of the market, to the grocery stores and hypermarts. Then, prices will go higher because of the lack of competition.

There are few, if any, industries more competitive than gasoline retailing. We at Bradley welcome the competition from the big-box retailers; we just want it to be on a level playing field. In a true free-market economy we can continue to give Colorado consumers the best-quality, low-cost gas for years to come, but not with the current legislation. Don't be deceived into thinking you are paying less for gas with their discounts because overall you are paying more.

Bradley "Buzz" Calkins Jr. is a manager at Bradley Petroleum Inc. in Centennial. He has a master's in business from Northwestern University's Kellogg School of Management and is a former professional race-car driver.

READER COMMENTS

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Jeff,

"The problem with that assertion is, as one of the bill's sponsors noted on KOA, that the hypermarkets will make up for it in margin across the rest of their store."

Come on man. Use your brain. The stores are free to raise their prices for whatever reason. That doesn't mean consumers will still shop there. On the one hand, people not WalMart because they offer such low prices; and then on the other hand they criticize WalMart because they might raise their prices.

Buzz's commentary is spot on. Everyone has taken a very myopic view that "discount gas" will be provided by the charitable hypermarkets. The problem with that assertion is, as one of the bill's sponsors noted on KOA, that the hypermarkets will make up for it in margin across the rest of their store. Key result: a regressive tax where families that buy more groceries subsidize the fuel costs of others, regardless of their personal vehicle choice.

Wow. I guess when people completely abandon the study of basic economics, they can be fed a lot of BS.

Mr. Calkins letter was a self-serving piece of garbage.

"The discounted gas price is offered only to those who purchase a certain amount of other products. For example, a consumer may save "x" cents a gallon on gas, but will pay more than usual on other purchases."

Consumers do not have to pay more if they don't want to. If WalMart raises it's prices on other products, consumers will go to a different store. Mr. Calkin knows this. You how I know he knows this? Because he wrote a letter stating a competitors lower price will draw consumers away from his business.

If WalMart raises it's price on milk and bread to cover the cost of selling gas, consumers will shop at Target. Consumers are not idiots, Mr. Calkin. And neither are the readers of this newspaper (for the most part). Nice try though.

These promotions were in place for several years until one retailer complained. In those years we did not see any small businesses go under because of low cost gas at big retail stores. Why would that happen now? Don't forget the advantage with generic prescriptions either. Other states now have Target stores and Wal Mart stores pharmacies that sell generics for $4.00 when in Colorado the same drugs cost as much as ten times more. How many of us in northern Colorado already go to Wyoming to buy our prescriptions? We just worry that we will be caught coming across the border with the cheaper foreign drugs. Is it legal for us to buy our drugs out of state if they are cheaper? Will this force local businesses into bankruptcy?

IT'S 10 CENTS!! CAN'T A CONSUMER SAVE A STINKING 10 CENTS WITHOUT SOME STUPID BUSINESS OWNER CRYING THEY WILL GO OUT OF BUSINESS? YOU GOTTA BE KIDDING ME!!

The legislation shows that the Democrats work for big corporations just like the Republicans. Anyone who wishes to look will quickly find that competition will be enhanced only if the vertical integration of the global oil companies is ended. For the Democrats to celebrate this bill as comsumer protection or some kind of benefit is dishonest. History shows how large trusts and monopolist corporations strangled consumers in the late 1800's and early 1900's. Please, let this newspaper work for REAL competition and consumer protection.

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