PURE Co-op continues progress toward petroleum “inventory independence”

Efforts ongoing to move PURE from a price taker to a price maker

PURE member John Strickland, Sr. of Wayne Oil Company in Goldsboro, North Carolina (left) chats about petroleum suppliers with Steve Magness of Professional Energy Management.

PURE member John Strickland, Sr. of Wayne Oil Company in Goldsboro, North Carolina (left) chats about petroleum suppliers with Steve Magness of Professional Energy Management.

The long-term strategic plan of the PURE Co-op includes, foremost, protecting the business interests of its members – more specifically, the competitive price of the petroleum pumping through their retail outlets and wholesale operations, says Tim Allen, Immediate Past President of the PURE Oil Jobbers Cooperative.

Progress continues on that front, as leaders from the PURE Board of Directors attempt to improve the organization’s competitive advantage by becoming a (supply) price maker, rather than a price taker.

The Co-op’s supply and finance committees, with the more recent help of consultants from Professional Energy Management (PEM), have been active on several fronts, from obtaining the necessary financing, to implementing the back office administrative capabilities necessary for the purchase and distribution of product among PURE oil jobbers.

But first the Co-op membership had to approve the plan by adopting a resolution to amend the PURE Oil Jobbers Cooperative Articles of Incorporation and By-Laws. The resolution went before the PURE membership during the annual shareholders’ meeting in Charleston in November. A majority vote in favor during the annual meeting now allows the Co-op to move forward with the next steps in the process.

Following more than a year of research and planning, the PURE Co-op Board of Directors determined that it was in the best interest of the membership to alter the way PURE provides product to its shareholders. The ultimate goal is to have the Co-op directly purchase product to resell to shareholders, leveraging the collective volume demand of Co-op members to obtain more favorable product pricing from competing suppliers.

In order to do so, PURE must raise significant amounts of additional capital and/or pledges of letters of credit from member shareholders. The Co-op’s leadership, while campaigning to establish the organization’s credit worthiness, has located a potential source for financing.

In addition, after receiving bids from several potential vendors, the Co-op has likewise identified a qualified contractor to provide the back-office solution necessary to support the requirements of the organization if/when it restructures to function as a purchasing agent.

For more information on this exciting but challenging process to enhance the capabilities of the Co-op and growth potential of the PURE brand, members can contact their district sales manager, who can provide a complete overview and details of the capitalization and restructuring plan.

Media contact:
Chris Wood, Ph.D.
770-757-1681 (phone)
chris@jwapr.com (email)

Tagged: pure oil jobbers cooperative supply, professional energy management, pure capitalization plan, pure petroleum brand