The High Cost of Gas Theft

By George Anderson
Based on the numbers, Jeff Lenard is right. The National Association of Convenience Stores’ (NACS) spokesperson told The Associated Press, “As the price of gas climbs, people’s values decline.”
The numbers certainly bear Mr. Lenard out. Last year, retailers lost more than $237 million due to gas theft, more than twice the dollar amount stolen in 2003. This year’s numbers are expected to top the 2004 figure.
While the financial losses are significant, there are also far too frequent human costs associated with gas theft. A case in point is the death last week of an Alabama service station owner, Husain “Tony” Caddi, who was run over by a driver seeking to avoid paying the $52 it cost to fill his/her SUV.
To cut down on theft and protect workers from the senseless type of violence that took Mr. Caddi’s life, many station operators have begun requiring customers to pay for gas in advance.
Mr. Lenard and Sam Turner, president of Calfee Co., which operates 114 Favorite Markets convenience stores in the Southern U.S., said that there is a financial cost associated with having customers pay in advance for gas. According to the men, prepaying cuts down on customers browsing and buying other merchandise in stores.
Moderator’s Comment: Do people’s values decline as the price paid at the pump goes higher? Is there a solution that allows employers to protect their
employees and gas profits without losing sales in other areas of their retail operation? –
George Anderson – Moderator
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9 Comments on "The High Cost of Gas Theft"
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Unfortunately, there is always a segment of the population that will stoop to theft. And, the high gas prices can push some people over the edge. But, Sam and Jeff are right – that prepaying can actually decrease the amount of time consumers will spend shopping for other items. If anything, prepaying angers consumers and will likely entice them to go elsewhere for gas where they don’t have to prepay.
Other convenience chains have put representatives at the forecourt to provide various valet services, take an order for food or a drink, suggest an in-store visit and generally promote consumer goodwill. Will the added costs of these services offset any performance gains? Maybe not in the short term, but the consumer loyalty they may reinforce can only help over time.
Depends on what you mean by values. If you mean – do more people turn to crime as a method to get gas? – I really doubt that is true. It’s more likely that those already on the criminal side just do it more frequently.
What’s more likely to happen is that the general public will alter their behavior, taking fewer “unnecessary” trips and, therefore, spending less on gas. The real problem for C-stores will be the impulse purchases associated with gas purchases. I would recommend some special deals on goods sold (with the help of the manufacturers who are also losing money) to entice customers to at least go inside the stores.
First, let’s be clear – people’s values don’t “decline”; they are “revealed.” People’s values are people’s values. When people behave in these ways – killing someone for $52 worth of gas – that’s their values at play. That’s them. They are simply revealing more of who they are. In fact, everything we do, in public or in private, reveals who we are and what values we hold. Watch some guys play golf and you’ll know what I mean. We’ve got to start being honest about how we think and the mind-sets we cling to. In the long haul, only when our thinking changes does our behavior change. As the ancient proverb says, how we think, so we are.
Do people’s values decline as prices rise? Yep! Americans have been culturally conditioned to have high expectations and feelings of entitlement. When thwarted by higher prices at the pump or for the table, some folks will rebel and jump the pump.
Gas stations should require cash in advance or credit cards. All stations are in the same quagmire so don’t overly sweat the program.
This is an easy problem to solve. Just require everyone to pre-pay. Most people do anyway. Why would someone want to fumble around with cash and have to stand in line? Plus, with all the 3% to 5% rebates on credit cards, its too expensive to pay with cash. You just swipe your credit card and pump. Very simple. If C-stores worry that people will not come in and browse, then put some kind of offer on the receipt that the gas pump spits out. Grocery stores do that all the time to get people to come inside.