Three years later, in 1985, BP took Hightowers from dealer to distributor status, when the oil giant selected Hightowers to carry jet fuel to various government installations such as the Ohio National Guard. Hightowers became licensed with the Public Utilities Commission of Ohio’s hauling authority as a PUCO contract carrier hauling fuel throughout the entire state of Ohio.
When it came time to renew Hightowers’ PUCO authority, BP supported Hightowers so that the carrier could transport fuel on its behalf, says Hightower, who now moves fuel in states from California to Maine. That’s when Hightower realized the incestuous nature of the fuel industry. The fiercest competitors of jobbers can on any given day be a vendor or customer to one another. Hightower recalls that the PUCO had a restriction that allowed existing carriers to protest new carriers from gaining a PUCO hauling authority in Ohio’s closed market, but BP called the carriers and asked them to not oppose Hightowers’ authority.
“It somewhat legitimized us from being a normal broker out there. It’s unique because you still have to buy from the same people you compete with.â€
Between the 1980s and 2006, the company’s revenues appeared to be flat, but the number of gallons it sold grew and its reputation increased among suppliers and customers.
Despite its stellar reputation in the industry, Hightowers was unable to obtain a line of credit until December 2011. Throughout the years the company relied on alternative financing and used larger oil suppliers such as The Lykins Cos. and Truman Arnold Cos., –not banks–to purchase fuel. Without this type of alternative financing, Hightowers would not be able to purchase, supply, and sell product to customers.
For example, Don Lykins of Lykins Oil was both a friend and a competitor. But after Hightower sought Lykins as a mentor, Lykins taught Hightower about the fueling business and supplied him with oil on credit to sell when Hightowers first received the contract through the set-aside program.
Hightower developed his business based on relationships with multiple suppliers throughout the country as well as multiple carriers. He set up a distribution network that allowed him an opportunity to go into any state, city, or county in the U.S. and source fuel on credit with little more than a handshake and his honor.
“I didn’t have to pay Lykins until I got paid,†said Hightower, who practiced competitive public speaking in high school, college, and beyond. Thirty years later, I still have a relationship with Lykins Oil.â€
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