Paying for gas became much more convenient when Randy Nicholsonshared his “pay-at-the-pump” idea 20 years ago.
Nicholson, CEO and founder of AutoGas Systems, Inc., wasrecently ranked No. 9 on USA Today’s list of the Top 25 Inventionsin the past 25 years for his creation, and employees in his NewBraunfels office are continuing to develop new technology to easethe gas-purchasing process. Currently, they’re working to patch afew holes high gas prices have burned in consumers’ pockets.
AutoGas’ patented program, Fuel Rewards, gives customers anopportunity to gain cents per gallon discounts with the purchase ofeither a product or a combination of products inside theconvenience store, said Steve Covington, technology officer ofAutoGas.
“Randy Nicholson laid out the vision for the program, and we putthe ideas on paper, developed the program and got the patent,”Covington said.
The Fuel Rewards program was first tested in Shertz in 1999, andas of May 2007 is found in more than 120 convenience and grocerystores nation-wide, said Scott Kilmer, product and promotionsmanager of AutoGas.
“The program is tied to the psychology of gas price. People arereally sensitive to the price of gas and drive across town to get agas discount,” Covington said.
Kilmer said the company’s approach provides gas discounts whileallowing customers to maintain normal grocery shopping habits. Thisallows gas stations to compete in areas other than gas price.
Instead of directly discounting promotional items, Covingtonsaid products are sold at full price, but cents per gallondiscounts are taken off gas. Generally the discount does not exceed15 gallons.
“This helps move products like cat food that aren’t alwayspopular at a gas station,” he said.
The amount of cents offered for each product is entirely up tothe vendor, Kilmer said. Vendors can also give cents off per gallondiscounts on a combination of products, such as a 20-ounce fountaindrink and a bag of chips.
If a customer makes a gas purchases of less than 15 gallons, theadditional rewards are burned. Customers can build up theirdiscounts to make the most of their 15-gallon purchase by visitingthe convenience store several times before filling up, said Kilmer,who has seen customers earn a free tank of gas.
The average consumer purchases fuel five to six times per month,and 31.6 percent of consumers plan to halt or trim travel due torising gas prices. About 16 percent of consumers will cut back ongroceries and about 21 percent plan to spend less on clothing,according to a report made by the National Retail Federation in2006.
