LOYALTY PAYS IN GAS

Customers are drawn to dealership by reduced rate

Editor’s note: This article was originally published on March 27, 2004.

Soaring gasoline prices, which reached another high point on Friday, have become a marketing tool for some South Florida businesses.

As part of a promotion, a morning show on Miami radio station Y-100 (WHYI, FM 100.7) recently offered its listeners a free fill-up at a Miami gas station, drawing long lines of cars.

And Rick Case, chairman and chief executive officer of the Rick Case Automotive Group, on Friday began selling gasoline at prices just above wholesale costs to holders of Rick Case Rewards cards at his Honda dealership in Davie.

“The plan is not to make money but to build customer loyalty,” Case said. “We’re going to be real close to break even. It’s a service to our customers.”

The dealership, which installed eight new pumps on its property at the intersection of Interstate 75 and Griffin Road, is selling three grades of gasoline “at close to cost,” said Case. It plans to buy gasoline from wholesalers and price it just high enough to cover the purchase price and fees charged by credit card companies. The dealership will accept only Master

Card and Visa cards for credit payments.

About 200,000 people in South Florida who have bought cars, motorcycles, parts or accessories, or have obtained service from a Rick Case dealership, already hold these customer benefit cards. Case said others may obtain a card at no cost by visiting any Rick Case dealership in the area. The cards, which accumulate points for purchases, can be used for discounts when customers buy a car.

Case’s initiative comes after gasoline prices nationwide reached another peak. The national average retail price for a gallon of unleaded regular was $1.75, according to the AAA Auto Club’s Friday Fuel Gauge report. In Fort Lauderdale, a gallon of regular unleaded had an average price of $1.82, also an all-time high. Gas stations polled by phone were selling unleaded regular from $1.79 to $1.87 per gallon Friday.

The Case dealership priced a gallon of unleaded regular Friday for $1.74, and a gallon of high octane for $1.86. Prices will change as wholesale prices rise and fall, Case said.

“We’re not going to make money on this. We sure don’t make any money on our free car washes,” he added. Rick Case dealerships also offer free car washes to those who buy a car at a Rick Case dealership for as long as they own the car.

The Davie dealership invested $300,000 to buy and install the gas pumps.