Paying for gas became much more convenient when Randy Nicholson shared his “pay-at-the-pump” idea 20 years ago.
Nicholson, CEO and founder of AutoGas Systems, Inc., was recently ranked No. 9 on USA Today’s list of the Top 25 Inventions in the past 25 years for his creation, and employees in his New Braunfels office are continuing to develop new technology to ease the gas-purchasing process. Currently, they’re working to patch a few holes high gas prices have burned in consumers’ pockets.
AutoGas’ patented program, Fuel Rewards, gives customers an opportunity to gain cents per gallon discounts with the purchase of either a product or a combination of products inside the convenience store, said Steve Covington, technology officer of AutoGas.
“Randy Nicholson laid out the vision for the program, and we put the ideas on paper, developed the program and got the patent,” Covington said.
The Fuel Rewards program was first tested in Shertz in 1999, and as of May 2007 is found in more than 120 convenience and grocery stores nation-wide, said Scott Kilmer, product and promotions manager of AutoGas.
“The program is tied to the psychology of gas price. People are really sensitive to the price of gas and drive across town to get a gas discount,” Covington said.
Kilmer said the company’s approach provides gas discounts while allowing customers to maintain normal grocery shopping habits. This allows gas stations to compete in areas other than gas price.
Instead of directly discounting promotional items, Covington said products are sold at full price, but cents per gallon discounts are taken off gas. Generally the discount does not exceed 15 gallons.
“This helps move products like cat food that aren’t always popular at a gas station,” he said.
The amount of cents offered for each product is entirely up to the vendor, Kilmer said. Vendors can also give cents off per gallon discounts on a combination of products, such as a 20-ounce fountain drink and a bag of chips.
If a customer makes a gas purchases of less than 15 gallons, the additional rewards are burned. Customers can build up their discounts to make the most of their 15-gallon purchase by visiting the 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 to rising gas prices. About 16 percent of consumers will cut back on groceries and about 21 percent plan to spend less on clothing, according to a report made by the National Retail Federation in 2006.
