Published since 1951...
January 19, 2007 | Vol. 57, No. 2

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In This Issue

Dear PEI Member:

Does it make sense to combine forces with distributors of other commodity lines and open a branch location with them? That's exactly what three independent distributors in central Pennsylvania did late last year and so far the results are positive.

As reported in Modern Distribution Management, the three distributors--APR Supply (HVAC/plumbing), Industrial Piping Systems (pipe, valves and fittings), and Schaedler Yesco Distribution (electrical)--teamed up to open a branch office in Chambersburg, Pennsylvania. The three distributors had been doing business in the area, although none had ever operated a branch in Chambersburg.

Since the distributors serviced the same areas, shared many of the same customers, ran trucks over the same routes, and had branches that served the same towns, they thought there might be a way to save money while providing better service to their customers. The monetary savings are significant: It costs each company about a third of what it would to establish and operate a branch of its own.

From the outside, the branch is seen as one business, not three. The Chambersburg facility is wired to provide full visibility into the inventory of all three distributors by all counter people and the warehouse is fully bar-coded. On the inside, each distributor provides counter people and sends out unique invoices from the home office.

So far, customers have responded positively to the idea. PEI member PWI Incorporated in New Oxford, Pennsylvania, has bought equipment from the Chambersburg branch. "Chambersburg is about 40 miles from our office, " explained Steve Hieber from PWI. "We used to buy equipment from each of the three companies that were in three different locations. Now we can make one call, receive one shipment, or make one visit. I'm a completely satisfied customer," he concluded. 

Is this an idea that would work for PEI distributors? Are there distributors of different commodity lines that might be good partners in a branch operation? Is it at least an idea worth thinking about and exploring with your management team?

Combining Distributors

RP400 Being Reviewed

Equipment Company Acquisitions

 PEI News

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The PEI Electrical Continuity Testing Committee is accepting comments and recommendations for revision of PEI's Recommended Procedure for Testing Electrical Continuity of Fuel-Dispensing Hanging Hardware (PEI/RP400-02).

Anyone in the petroleum marketing industry--PEI members, regulators, oil marketers, trade associations, and private citizens--is permitted to comment on the document. If you have suggestions or recommendations for revisions to RP400-02, you are invited to submit them on the special form on page 13 of the recommended practice or online at Written comments must be received in Tulsa by March 20 to be considered by the committee.

The PEI Electrical Continuity Testing Committee will meet this spring to review and act on the proposed changes. A revised document will be issued later this year.

Petroleum Solutions, Inc., (PSI)
headquartered in McAllen, Texas, has purchased certain assets of Aus-Tex Service Station Equipment. On February 1, PSI will move these and other assets to a new facility located at 1804 Smith Road in Austin, Texas. The new branch manager is Michael Jorgenson, who held a similar position for PSI in Houston. Brent Peffer is operations manager of the branch and will assist in the transition period. PSI has retained the services of all current Aus-Tex employees.
Mark VII Equipment Inc., Arvada, Colorado, has acquired its long-time distributor Mid-Tenn Mark VII, Inc. of Lebanon, Tennessee. The new subsidiary is now called Mark VII of Tennessee. Former owners Robert Taylor and Moose Tyree will continue to work with the subsidiary as consultants; Larry McCarty has been promoted to general manager. 

Square D® Integrated Power and Control Solutions (IPaCS)
, Salisbury, North Carolina, has chosen Carolina Marketing Solutions, also based in Salisbury, as its sales representative for the convenience store/petroleum market in the southeastern United States.
Petroleum Solutions, Inc., headquartered in McAllen, Texas, has promoted Luke Clements to sales manager of the Houston regional office. He will also fill the role of Gilbarco/VeederRoot product sales manager for the corporation.
, Tulsa, Oklahoma, has named Alan L. Sylvester, Pete Luitwieler and Bill McCollough to its advisory board. The three men are former executives of the oil and refined fuels industry.

Petroleum Solutions, Inc.
of San Antonio has moved to a new location at 11111 Iota Drive in San Antonio. The 12,750 square foot facility has a 6,500 square foot warehouse and a training facility.
Illinois Governor Rod Blagojevich signed HB 4137 into law January 12. It requires state agencies to buy flexible fuel vehicles that use E85 or diesel-powered trucks that use B5. The law also encourages state agencies to purchase fuel-efficient hybrid vehicles.

Sam's Real Estate Holdings of Georgia LLC has purchased 47 Shell sites in the greater Atlanta and northern Georgia areas from Motiva Enterprises LLC. Sam's Holdings currently operates nearly 50 other Shell-branded wholesale sites in North Carolina and South Carolina.
NewGen Technologies Inc., Charlotte, North Carolina, has agreed to acquire Appalachian Oil Co. (APPCO), headquartered in Blountville, Tennessee. APPCO operates 58 company-owned stations and supplies petroleum products to more than 160 other independent dealers. 
The Pantry Inc., Sanford, North Carolina, has signed an agreement to acquire 55 Petro Express convenience stores in North Carolina and 11 in South Carolina.
Southern Convenience Stores Inc., Mooresboro, North Carolina, has sold substantially all of its 68 retail sites to a variety of buyers.
Uni-Mart LLC, State College, Pennsylvania, has acquired 28 retail and wholesale gasoline sites in the Youngstown, Ohio, area from BP.

Oregon leasing/financing firm
. Capital Equipment Leasing, Inc., 1855 NE Albion Court, Beaverton, Oregon 97006, has applied for affiliate division membership in PEI. James Phelps is president of the firm, which was established in 1996. Capital Equipment Leasing provides leasing and financing options for new and used equipment. Nominated for PEI membership by Susan J. Scott, JWScott, Trenton, NJ.
Static grounding systems and clamps provider
. Anysafe Safety Equipment Co., Ltd., 750 JingGang Shan Avenue, Economic and Technical Development Zone, QingDao City, China 266555, has applied for affiliate division membership. Annie Ye is export manager for the firm, which was established in 1996. The company provides static grounding clamps and systems, liquid level sensors, autodisplay systems, and magnetic digital displays. Nominated for PEI membership by Nathan Chen, PetroqpEng, Xiamen, Fujian, China.
Piping installation and service company. EUST Co., Ltd., Seokchon Sungchang Bldg. 303 297-2, Seokchon-dong, Songpa-gu, Seoul, Korea, has applied for affiliate division membership. Myungyoung Haw is foreign sales manager for the firm, which was established in 2004. The company installs and services double-walled piping systems. Nominated for PEI membership by Glyn Owens, PtrTechnik, Ipswich, Suffolk, United Kingdom.

Admitted to PEI

  • Fast Tech S.A., Quito, Ecuador (dis)
  • MTS Systems Corp., Sensors Division, Cary, NC (mfr)
  • Petro-Meter Corporation, West Babylon, NY (mfr)
  • Elliott Parts & Services, Inc., Boulder, CO (aff)
  • Amlin Pump Service, Bonham, TX (aff)
  • Gates Construction, Inc., San Antonio, TX (aff)
  • S.C. Fueling Solutions, Sherman Oaks, CA (aff)
  • APS International Inc., La Porte, CO (aff)
  • BC&C, LLC, Winchester, VA (aff)

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Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.

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