New Development Highly Successful
A New Site Shines with a Comprehensive Offer to the Consumer
The owner of a diverse regional retail and wholesale petroleum company acquired land at a significant major highway exit and wanted to develop a modern station.
The property was well-located. It was large enough to support the desired uses. The Owner was knowledgeable and involved. How can we bring all the necessary elements together to properly develop a new site quickly and economically?
The Owner had other successful stations and an excellent reputation in the community. They had a vision for the development that they wanted to implement but needed support from an experienced project manager.
Woods supported the owner in a complex negotiation with a branded food partner ultimately leading to a long-term lease.
Woods utilized concepts and drawings from the Owner’s prior projects to reduce the cost of site and building design.
Woods supported the Owner in obtaining Site Plan Approval and Building Permits quickly. It was a conscious decision to have the owner be the main point of contact with the municipality due to their excellent reputation in the community.
Woods recommended and the Owner agreed to hire a top-notch petroleum contractor for the project. The Contractor not only built an excellent site but recommended several design changes resulting in cost savings of over $150,000.
The Payoff: Sales Targets Exceed Projections in the second year
The site's petroleum sales volume reached its three-year goal midway through the second year. The food partner sales exceeded everyone’s expectations within the first year. This was a successful development and is now a highly successful operation.
Partnering with Petroleum Contractor
Woods Solves Contractor’s Resource Issue
An established petroleum contractor was offered a long-term opportunity to implement a multi-site image upgrade for a major oil company. Because of their long-standing relationship with the client, they wanted to accept the contract, but their internal resources were stretched thin with their primary business.
Can Woods provide the necessary project oversight, staff and organization to execute the work?
The project would consist of 30 to 40 image upgrade projects annually across the country
The client was rightfully demanding of strict adherence to their brand standards
Competitive quoting and a strong safety mindset were critical components to every project
Each project would, to a greater or lesser degree, interrupt the business of the retail outlet being upgraded
Woods developed a network of competent contractors across the country to execute the projects
Woods developed checklists and other project management tools to track project progress and monitor safety compliance
Woods established regular coordination calls with the client, suppliers and contractors to quickly solve issues and manage bottlenecks
Woods was relentless when communicating with the individual business owners regarding schedules, down-time and ways to mitigate impacts on their business
The Payoff: A network’s image is greatly enhanced
Over 250 re-imaging projects were completed, the vast majority of which were accomplished as planned. There were some difficult projects and some surprises along the way, but a constant and honest communication strategy was effective at keeping everyone informed and comfortable that everything possible was being done to keep things on track. Very positive feedback was received from the site owners and the oil company client, enhancing both Woods’ and the Petroleum Contractor’s reputation.
Due Diligence Pays Off
Walking Away is Sometimes the Best Course of Action
The owner of a small multi-site company was looking to expand into a highway commercial market on a major north-south artery connecting Southern and Northern Ontario.
Can the market support the construction of a new gas station/convenience store? Alternatively, can an existing station be purchased and renovated?
Through the analysis of traffic counts, estimates of existing site volumes and future growth projections (which were negative) it was determined that the acquisition of land and the construction of a new station would not be profitable.
It was recommended that the owner try to acquire one of two existing facilities at prices that would afford an acceptable return on investment after renovations. A preliminary offer to purchase was negotiated with one of the two target properties. While performing detailed due diligence on the property, a significant issue was discovered with the property boundaries in relation to the location of certain structures on the property. The issue was significant enough that a renegotiated purchase price was necessary. An acceptable revised number could not be reached with the existing owner.
The owner of the second target property was approached. A preliminary review of the condition of the property and the potential redevelopment costs resulted in a purchase price range that would satisfy the client’s desired return on investment. An offer to purchase could not be reached with the existing owner within the desired price range.
Despite the client’s desire to expand into this market, a cost-effective way to do so could not be found. The client abandoned their plans to expand into this market. Interestingly, within a year of this decision, the second target station closed for financial reasons.
Lesson - Sometimes the best course of action is to walk away.