May 2017 Industry News from Patriot Capital
Does Trump's Tax Plan Mean Higher Costs for C-Stores?
President Trump has announced one of the largest tax cuts tin history. The changes will impact most American businesses, including convenience stores.
The planned reduction of taxes proposed for “for corporations, small businesses and partnerships of all sizes” is the headline story. At the same time, the maximum personal income tax rate is proposed to be 35 percent and the number of personal tax rates would drop from seven tiers to three (35 percent, 25 percent, 10 percent).
Considerations for your business include:
- lower tax rates mean higher after tax costs for equipment due to lower depreciation
- if the Border Adjustment Tax comes into effect, higher prices for imported components and equipment
- uncertainty around the fate of Section 179.
- acceleration of interest rate increase
For more on how the new tax proposal could affect your business, read the entire article here.
Three Factors to Consider When Purchasing Convenience Store Equipment
Chris Santy, President of Patriot Capital, shares some key points that need to be considered when deciding whether to invest in equipment upgrades in this article.
When making any investment decision, the first consideration always should be the return on your investment (ROI), Santy's article discusses three important ROI concerns to consider:
- What is the cost of the equipment or investment?
- What will the equipment earn?
- What could happen to make the return on investment different than expected?
Patriot Capital offers a variety of equipment financing options for C-stores, fuel marketers and jobbers. To get a quick quote, or find an advisor near you, visit the Patriot Capital website or call (877) 527-0383.
225-foot Tunnel: 'World's Largest Car Wash' Part of Buc-ee's New Site. Read more about the massive new project here.
Fuel customers will change their driving habits to decrease their fuel consumption once gas prices reach $3.37 per gallon, according to a new NACS Consumer Fuels Survey. The price would have to hit $4.43 before consumers will drastically decrease their driving.
The price of gas also affects how consumers think about broader economic issues. Other issues the survey explored include expectations on future fuel prices, generational differences in consumer attitudes, and consumer perceptions on the reasons for fuel price increases - the good news is they don't tend to blame the fuel retailer.
Visit the NACS Fuel Resources Center to review a variety of 2017 C-store consumer opinion surveys.
Low Gas Prices Attract Southern Drivers, While Westerners Focus More on Brand. Learn how geography affects consumer behavior here.
Dirty Pumps, Restrooms Cited Among 'Four Sins of Fuel Retail'
Filthy gas pumps, malfunctioning card readers, unwelcoming stores, and dirty restrooms are cited as the top "Four Sins of Fuel Retail" in a recent editorial by industry strategist Norman Turiano.
Cleanliness at the pumps tops the list. Turiano points out that female consumers are especially reluctant to touch a visibly dirty pump, and this can drive away business.
Dirty restrooms make customers question overall cleanliness, and particularly. wonder about the healthiness of on-site prepared food. Does your site have the right focus on the 'Four Sins'?
Read the entire article in CSP Daily.
Consumers Have Driven More Than 500 Million Miles on E15 Ethanol-Blended Fuel. - Growth Energy
Consumer Optimism Remains High Despite Fuel Price Increases
Consumer optimism is at an all-time high despite rising gas prices, according to a NACS National Consumer Fuel Survey. NACS reports that 61 percent of consumers feel optimistic about the economy, the highest number in the 4-year history of the monthly survey.
Drivers remain optimistic despite the fact that a majority of gasoline consumers expect prices to increase in the next month. Slightly more than half of all Americans report they expect prices to be “much higher” or “somewhat higher”, while only 9 percent expect prices to drop.
Traditionally, rising prices result in decreased consumer optimist. Four years ago, when 85 percent of Americans said that gas prices had increased, 41 percent were optimistic. However, gas prices were more than $1 per gallon higher in 2013 than they are today.