Shifting into High Gear
Visher, who brought a more conservative perspective from the corporate banking world, joined the company in 2006 with the goal to build up the company’s balance sheet, and as a result, Hightowers Petroleum increased profitability and assets, which opened the door to a line of credit.
“To strengthen the balance sheet, I first had to make it profitable, grow the equity, put assets on the books, and restrict tax liabilities,†explains Visher. Laying off workers never crossed his mind. Further, though the price of fuel can change twice a day, the margins are fixed, so Visher couldn’t alter the company’s pricing structure. Instead, he watched the budget and found additional cost savings by averting situations where the company could be overtaxed.
“When you’re selling millions of gallons, that can be a lot of money,†says Visher. For example, Hightowers Petroleum operates as a fuel dealer in 17 states, which means it is subject to a multitude of taxes, including federal excise taxes, federal inspection fees, and state motor fuel taxes. In some instances those taxes can be 37 cents on the gallon or more.
“Visher’s contribution as CFO is what our organization needed at the time,†says Hightower.
Also in December 2011, Hightowers purchased a 14,400-square-foot building for slightly more than $1 million. Since Hightowers rents out more than 50% of the space, the mortgage is covered.
Exponential Marketing
In the fuel industry, contracts are rarely confirmed with signatures on paper, but with handshakes, says Hightower.
“It is a very upright industry. It depends on good faith and good will. If you don’t have it, you’re not in it,†says Hightower, who is the only African American national fuel distributor. “That had to be proven over time.â€
Proving that has been as much about staying accessible to customers as it has been about perfecting the business processes at the pump. Hightower attributes the company’s growth in sales and customer relationships to its exponential marketing strategy, which he implemented 10 years ago. The strategy relies heavily on creating a marketing atmosphere, where others–customers, political networks, and industry agencies–are selling on the company’s behalf.
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