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EVERYTHING MCMINNVILLE PLUS A LITTLE BIT MORE

MCMINNVILLE COMMUNITY ADVANTAGE MAGAZINE

JUNE-JULY

50 YEARS OF LEGENDARY CONSIGNMENTS INSIDE COMMUNITY Nat iv e Plant S o c iety

SPOTLIGHT A ca d emy M or tg a g e

HISTORY of G a s P ri c e s

BUSINESS SPOTLIGHT

Northwest Professionalism Chimcare Chimney Service

himcare strives to be the leader in the chimney and fireplace industry. They are committed to providing customers with the highest quality service at affordable pricing, and are known throughout the Northwest for professionalism and dedication to customer satisfaction. In 1989, Richard Peralta began a small chimney sweeping company in Canby, Oregon in order to help support his growing family. Richard started the business on a part-time basis to provide extra income for his family of eight, while working full time for UPS. After five years of hard work and dedication to his customers, he was able to leave his day job and pursue the business full time. Richard built the business from the ground up by providing dependable, quality service that is still trusted to this day. Thanks to his incredible dedication to the craft, integrity, and impeccable customer care, Richard’s business quickly grew into the chimney repair and cleaning company that carries on his legacy today. Many of Richard’s first customers are still with Chimcare LLC today, along with their family and friends. Chimcare is very proud that the majority of their business is from loyal repeat customers and their referrals. As they have grown, Chimcare has expanded with additional locations in order to service the greater Portland and Seattle areas. Their chimney professionals can service homes and businesses as far north as Everett, Washington and as far south as Salem. Along with providing chimney cleaning, inspection, and repair services, the great team at Chimcare can also help transform your outdoor living space by constructing a beautiful outdoor fireplace for you to enjoy all year round. They are experts

2 To Advertise With Us, Call 503.825.2111

at chimney construction and masonry, and their work is so good that they have also branched out to doing special projects like patios, retaining walls, fire pits, walkways, and pretty much anything that can be done with brick and mortar. In 2005 Richard’s sons Jesse and Daniel took over the business. While these two keep Chimcare running, Richard now dedicates his time to community outreach projects that he is passionate about. Jesse and Daniel remain committed to not only keeping up with the level of service that their father provided for many years, but working to exceed it. They want to go above and beyond for each and every customer. Along with the current customer base, Jesse is working hard to expand Chimcare as his father had always dreamed. They are always looking to serve new customers who are searching for clean-cut service technicians with experience, quality workmanship, and a name that is trusted around the northwest. They are proud to carry on the Peralta family tradition of providing exemplary chimney care for you and your home. If you have any questions or want to inquire about their services, you can visit their website at www.chimcare.com, or call them at 971-367-0990.

THE MOST TRUSTED CHIMNEY CARE Since 1989

Chimney Sweep | Chimney Inspection | Chimney Crown Repair | Masonry Services & MORE! Fireplace Makeovers

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Offers may not be combined with other offers. Only one offer per household. Some restrictions apply. Please call for details. Expires 8/1/22

Call Us! 971-367-0990 • www.Chimcare.com OR CCB#195475 | WA License #CHIMC**882C2

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In-Store Orders Only

LARGE HAWAIIAN PIZZA

In-Store Orders Only

Our Original Crust topped with Creamy Garlic Sauce, Whole-Milk Canadian Bacon and Pineapple or two of your favorite Mozzarella, Grilled Chicken Raised Without Antibiotics, Roma toppings on Thin or Original crust. Tomatoes, Green Onions, Cheddar, and Herb & Cheese Blend Limited time offer. Limit 3. Not valid with any other offers, Limited time offer. Limit 3. Not valid with any other offers, specials,promotions or discounts. Valid at participating locations. specials,promotions or discounts. Valid at participating locations. Cannot be sold,transferred or duplicated. Cannot be sold,transferred or duplicated.

3 OFF

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Limited time offer. Limit 1. Excludes XLNY®, Tuesday and Friday pizza deals. Not valid with any other offers, specials, promotions or discounts. Valid at participating locations. Cannot be sold, transferred or duplicated.

ANY LARGE PIZZA $12.99

McMinnville • 1049 OR-99W (503) 472-2536

4 OFF

Treat Yourself To A Clean Healthy Home

25 OFF

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Offer limited to first-time customers. One per household. Expires 8/15/22

NAOMI’S CLEANING

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NAOMI’S CLEANING

BATHROOMS KITCHENS BEDROOMS FLOORS DINING ROOMS LIVING ROOMS ... AND MORE!

DRINKS TO-GO Margaritas! And More

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50% OFF DINNER

Buy 2 drinks & One Dinner Entree, Get the 2nd of Equal or Lesser Value HALF OFF! Max $7 value with coupon. Not valid with any other offer. Expires 8/15/22

Open 7 Days A Week!

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McMinnville Community Advantage Magazine 5

NEW

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DISPOSABLE VAPE PEN WHEN YOU BUY 3

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CLOTHING & APPAREL

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VAPE PRODUCTS • CIGARETTES CLOTHING • COLLECTIBLES

PET FRIENDLY

2758 NORTHEAST HIGHWAY 99W MCMINNVILLE • NEXT TO MAZATLAN 503-966-3593 • APPARATUSSMOKESHOP@GMAIL.COM CIGARETTES SURGEON GENERAL’S WARNING: Smoking Causes Lung Cancer, Heart Disease, Emphysema, And May Complicate Pregnancy. CIGAR WARNING: Cigar smoking can cause lung cancer and heart disease. SMOKELESS TOBACCO WARNING: This product can cause mouth cancer. VAPE WARNING: This product contains nicotine. Nicotine is an additive chemical.

we have everything you need from seed to harvest! SOILS • HYDROPONIC MEDIAS • LED LIGHTS • CO2 TANKS & REGULATORS • PRUNING & CLONING SUPPLIES

We have heirloom vegetable starts including: • tomatoes • cucumber • peppers (ghost, scorpion, death spiral, carolina reapers)

• eggplant • watermelon • squash

20% off

any Aurora Innovation product including the full Roots Organic line & the full Soul line (limited to supply on hand)

Restrictions apply. Call 503-474-4400 for details. Expires 8/15/22

Ohana Gardening & Hydroponics

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2147 NE Cumulus Ave • McMinnville

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Mariscos

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$ Every Thursday $1.99 Margaritas (10oz. & on the rocks only)

Sun, Mon, Wed & Thurs 11am-9pm • Fri & Sat 11pm-10pm • Closed Tues

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(971) 706-5152

Any Any Purchase Purchase of $25 or More

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of $10 or More

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McMinnville Community Advantage Magazine 7

ARCADE FUN ALL SUMMER a Private Book A Party here!

GAMES FOR ALL AGES

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Open for dine-in

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Breakfast Sandwich

buy 1 breakfast sandwich and get a second one of equal or lesser value for free With purchase of regular priced sandwich. Limit one coupon per customer per visit. Not valid with other coupons or specials. Expires 8/15/22

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& Homemade Bread!

Best Bakery In Town Locally Owned & Operated

HOURS: Mon thru Fri 6:30am to 9pm Sat 8am to 9pm Sun 9am to 8pm

Breakfast served until 11am Mon-Fri and Noon on Sat & Sun ORDER ONLINE: sandwichexpressor.com

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2 GREAT LOCATIONS

945 North Baker Street • McMinnville

503-472-5133

1233 W. Main Street • Sheridan

503-843-4486

McMinnville Community Advantage Magazine 9

CJune O F2021 F E E &C R O S S WO R D 1 2

5 6

B A 8 G R B 9 I C E C S U E

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DOWN 1 Sweet & Tart Summer Drink 3 Fun In The Pool 4 Play Across 5 Grill 6 2Get Away to play with Someone 11 Sunny Season Outdoor meal 12 7Garment 15 8Outside Overnight Stay conferring of an academic degree

L 2 3 4 F R I E N D S F M W U 6 7 V O P I C N I C A D U A T I O N M C A M C R E A M D I T E N N S H I N E G O 11 12 S A N D A L S U H 13 M P O O L M R 14 15 B E A C H T R A S M P I N G

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NON-PROFIT

NATIVE PLANT SOCIETY OF OREGON: CHEAHMILL CHAPTER

Enjoyment, Conservation, & Study F

or a quarter century, local environmentalists and horticulturalists have volunteered thousands of hours in keeping Yamhill County green (and actually other colors if you count wildflowers) with native vegetation. The Cheahmill Chapter of the Native Plant Society of Oregon, which was founded in 1961, was launched in 1998 and has collaborated with local governments to transform and maintain public land full of trees, flowers, grasses, and other plants that are literally at home.

“The term ‘native’ plant refers to plants that have adapted over time to local environmental and social influences, such as soil types, hydrology, micro-climate and human influences,” explains chapter member Michal Wert, who lives on Chehalem Mountain north of Newberg. “They produce flowers, fruits and seeds throughout the year and create a beautiful, natural look.” Like many organizations, the Cheahmill Chapter met virtually the last couple of years, but they expect to ease back into in-person meetings in the fall. Along with hosting speakers and educational workshops, the group has held an annual wildflower show and a native plant sale. But work parties outdoors continue, and there’s a lot to do! If you’ve ever visited or driven by the McMinnville Public Library on Adams Street, you can see the fruits of their labor. The native plant garden that surrounds the Carnegie Building on Adams Street actually predates the NPSO chapter, but since 1999 they’ve maintained the now 11-bed garden.

By David Bates, Contributing Writer

incense cedar, wild ginger, shrubs like ocean spray, and pink and white fawn lilies. A similarly ambitious project can be found on Lafayette Avenue at the Yamhill County Public Works Department. When the new facilities were built a few years ago, Wert and Cheahmill volunteers Rob Tracey, Dave Hanson and Jeanie Taylor worked with county staff on a plan for twelve garden beds around the new building and in the parking lot. In all, nearly 4,000 plants representing nearly 70 species were sourced from Oregon nurseries and planted on the property, including a large wet prairie garden that collects runoff from half the parking lot and a demonstration garden at the entrance. But volunteers also get out of town, working in parks that are tucked into the hills and woodlands. Deer Creek Park west of McMinnville, for example, is the crown jewel of local NPSO efforts. Thanks to restoration of 30 acres of upland and wet prairies, beaver ponds and riparian habitat, it is the most biologically diverse park in the county. You can learn all about it by visiting, because their work has included installing interpretive signs that describe the area’s rich history.

It’s a beautiful showcase for plants that can easily be used in domestic landscaping in a variety of micro ecological niches, from full sun to complete shade. The gardens here include nearly 80 species, including Pacific yew,

DAVISON

AUTO PARTS MCMINNVILLE • 1717 N. Baker St. • 503-472-6114 CARLTON • 155 N. Yamhill St. • 503-852-7071 SHERIDAN • 317 S. Bridge St. • 503-843-2211 12 To Advertise With Us, Call 503.825.2111

For more information about the Native Plant Society of Oregon, visit npsoregon.org, where you’ ll find a link to the local Cheahmill group under “Chapters.” The local chapter is also on Facebook.

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of $25 or more

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Any Service of $500 or More

Are you underpaid and underappreciated? Chemeketa Community College can help you change that! There are many options available at Chemeketa. We will help you create the foundation to a new and rewarding career.

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Community Advantage Magazine R1

DELIVERING PIZZA, Salads

Odd Moe’s Menu

2515 Portland Rd • Newberg • 971-281-8987 1350 North Baker Street • McMinnville • 503-434-6666

Ice cream, BEER & SMILES

n I s I r e m m u S ! r i A e TH

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R6 To Advertise With Us, Call 503.825.2111

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Offer valid for NEW systems over $1500. Coupon must be presented at time of inspection. Expires 8/1/2022

168

Yamhill County Fair & Rodeo

Nitty Gritty Dirt Band August 3

August 3-6

Jo Dee Messina August 4

Shenandoah August 5

Season P Golden asses Tickets Circle On Sale NOW!

Night Ranger August 6

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Walker County

2070 NE Lafayette Ave ■ McMinnville ■ (503) 434-7524 for more information, visit www.co.yamhill.or.us/fair

SERVICING THE GREATER PORTLAND & VANCOUVER AREA

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CALL FOR A FREE ESTIMATE | 503-342-0595 | www.KraftScreens.com Community Advantage Magazine R7

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Community Advantage Magazine R11

BUSINESS FEATURE

NEW TO YOU

Legendary Consignment By Patti Jo Brooks, Contributing Writer Photos by Kara Langley

elebrating “Over 50 Years of Legendary Consignment,” New to You extends their thanks to McMinnville and the local community. “We’re truly locally supported. It’s amazing to see new friends made generation after generation!” Offering quality new and pre-owned apparel, home furnishings, books and more, New to You has something for everyone. A community icon, New to You is the largest consignment store in the Willamette Valley. Rarely does a business experience the 50 year longevity that New to You has enjoyed—and they attribute it all to You! Consigners, shoppers, and staff merge together in one big happy family. Consignors and shoppers alike appreciate the friendly, welcoming atmosphere, and personal attention extended by each and every staff member. New to You employees go “above and beyond ” to let guests know they are genuinely cared about. Consignors are free to browse the store while waiting to complete the check-in process. Customers “feel special ” knowing they are contributing to the recycle/reuse program, as well as selecting unique items at discounted resale prices. As one employee put it, “Saving the planet while making extra money will always be in style!” New to You’s “lovely” staff are always open to new ideas and improvements. They help each other out, and “have fun while getting the job done.” Kelly, lead consignment employee at New to You, shares her feelings: “What keeps me coming to work every day is our customers, building wonderful relationships and knowing them for so many years.” Kelly adds, “I love it, and I’ve been here for 27 years!” Diana, another lead employee at NTY, relates:

R12 To Advertise With Us, Call 503.825.2111

“I remember shopping here as a kid. Working here now is a form of nostalgia for me.” Staff members are hired throughout the local community based on “personality and positive energ y.” Candidates come through many channels: Referrals from family and friends who love working at NTY, Word of Mouth, Social Advertising, and Customers who become employees because of the positive experiences they’ve had as shoppers and consignors. An active online presence, Fivestars Rewards program, and email subscriptions provide consignors with up to date information on their accounts. They receive coupons, pricing information, and feed-back questionnaires, as well as notifications when they have consignment money to spend, or available rewards for their next shopping trip. Consignment is extremely popular— people just love earning shopping money! Consignors also have the option to donate items to the nonprofit consignor accounts (such as Dayton Food Bank, A Family Place, etc.), and communities in need can utilize NTY’s link with McMinnville’s Soroptimist. Shoppers participate in the loyalty program as well, and NTY offers Military and Senior Discounts. Social media and email communications extend Birthday Coupons and information on Flash Sales and more. Consistently popular and “well sought after” are the discounted designer handbags. Activewear is another huge draw—the shoppers LOVE Nike. “Wear it. Adore it. Consign it.” Shoppers and consignors perpetuate the cycle through their direct involvement in this process, and by helping to spread the word. Thanks to their efforts, New to You

welcomes new referral guests all the time. “We love being Wine Country’s Favorite Closet, and believe New to You is a landmark destination for anyone who loves shopping!” Local owner and operator, Todd Peters, acquired the business in October 2020, taking up New to You’s long-established legacy. Favoring Resale over Retail, Todd and New to You remain dedicated to the mission of limiting textile waste, landfill contribution, and reducing carbon footprint. New to You also has a sister store—the Thrift Store in Keizer—committed to the same mission of sustainability and focus to “help save the planet.” Community outreach and local involvement includes partnerships with The Big Brother’s Big Sister’s Foundation and the Union Gospel Mission. New to You also participates in the Holiday Toy & Joy Drive hosted by McMinnville Fire Dept, Breast Cancer Awareness Month in October by partnering with the local organization, With Courage, as well as various other local non-profits. “Everything about New to You, from employees and ownership, to long-term consignors and first-time shoppers—is all community based.” Moving into the future, New to You holds high hopes that the McMinnville community will continue to “share the tradition of shopping and consigning with their loved ones, now and for generations to come.” Taking this opportunity

to express a similar sentiment, spokesperson Dallas Olejniczak tells the community of New to You’s desire to “pay homage to our 50 Year Anniversary serving the Willamette Valley, and encourage new shoppers, and consignors, in the next 50 years to come.” New to You is located at 238 N Hwy 99W in McMinnville. Reach them at (503)472-1418, info@shopnewtoyou.com, or visit their website shopnewtoyou.com.

Community Advantage Magazine R13

Well-Pump Sales, Service and Installation Our crew of experienced well pump service professionals work hard to carry on the fundamental principles of hard work and integrity laid out by our owner Jim Roofener, when he established Hillsboro Pump Service in 1978.

Installation • Troubleshooting & Repairs • Flow Testing

CCB# 120254

For Any New Pump or Water Treatment Installation

503-357-4217

www.hpspipe.com • Info@HPSPipe.com

R14 To Advertise With Us, Call 503.825.2111

• Tree Trimming & Pruning • Tree Removal • Preventative Tree Care • Stump Grinding • Brush Chipping • Hedge Trimming • Fruit Tree Pruning • Lot & View Clearing

Free Estimates

24-HR EMERGENCY SERVICE

971.241.2471 w w w. nw t r e e c a r e . c o m

Licensed • Bonded • Insured • CCB#158060

KEEP YOUR VEHICLE

READY FOR ADVENTURE THIS SUMMER!

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REGULAR PRICE WITH COUPON

• Lube, Oil & Filter (5 qts. synthetic blend oil) • Premium Oil Filter • Check Antifreeze Protection • Battery Test and Inspection • Vehicle Inspection Report • Inspect Tire Condition Call for Appointment. Most Cars. Up to 5 quarts of conventional oil. Full synthetic oil is extra. Cannot be combined with any other offers. Expires 8/15/22.

Steve’s Auto Service

503.476.3989

112 N MERIDIAN • NEWBERG

971.287.7205

710 NE 3RD ST • McMINNVILLE Historic Downtown McMinnville

COURTESY SHUTTLE AVAILABLE ON MAJOR REPAIRS

$ 100 OFF 50 OFF 5 OFF 75 OFF COMPLETE BRAKE JOB $

ANY REGULAR PRICED OIL CHANGE

ANY SERVICE OVER $1000

(Call Store for Details)

Not valid with any other offers. Offers cannot be combined. Call for appointment. Expires 8/15/22

FULL A/C KIT

(Call Store for Details)

Not valid with any other offers. Offers cannot be combined. Call for appointment. Expires 8/15/22

Experience Modern Eye Care

Dr. Brian Morrissey, Optometrist

Jamie Newman, Optician & Office Manager

Eye Care Center of McMinnville Mon - Fri 8:30am - 5pm • Saturday Appointments Available

2225 NE Evans St. • McMinnville

503-472-0825

25off

Any New Frame Over $100

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McMinnville Community Advantage Magazine 13

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SPOTLIGHT

ACADEMY MORTGAGE

Changing Lives Through Lending By Dennis McNabb, Contributing Writer

hen it comes to choosing a mortgage broker, especially in a volatile market like the one we are currently witnessing here in the Northwest, it’s imperative to find someone you can trust. You need someone with an intimate understanding of your local market; someone with access to a broad portfolio of product solutions to get you the terms you are looking for. In Yamhill County, there’s one brokerage who both meets and exceeds your every expectation, and that is Academy Mortgage.

she completed the annual Susan G. Komen 60 Mile Walk. She’s not afraid to walk the extra mile for her customers! Jacob Halsey is a huge fan of McMinnville’s small-town community and is tremendously active in local events. One of his favorites is the annual Peanut Butter Drive which has a profound impact on fighting childhood hunger!

Academy Mortgage has been in existence for over 30 years. During that time, they have grown to become one of the largest and most well-respected independent mortgage lenders in the entire country, while still retaining a smallbusiness approach to customer service. Their sole focus is on you, the customer; and because they have the distinct advantage of being a direct lender, every step of the mortgage loan transaction—from processing, underwriting, closing, and funding—is all handled locally for maximum speed and efficiency! With their integrity-based approach, full transactional transparency, and unwavering commitment to responsible lending practices, Academy Mortgage provides you with the ultimate peace of mind.

Academy Mortgage is located at 835 NW Adams St. in McMinnville. Visit their website at academymortgage.com, or give the office a call at 503-443-9935 to get more information.

So how did they do it? How did Academy find that perfect balance between commanding attention as a nationallyrecognized powerhouse in the industry, and still providing service like a single-location mom and pop enterprise? Simple. By hiring the best brokers in the business. The McMinnville office is staffed with the warmest, kindest, mostprofessional people you’ll ever meet; and they’re all local! These people are your friends. They’re your neighbors. They have the same sincere affection for this community that you do, and their level of involvement reflects that. Sharon Champagne is an avid lover and supporter of local wineries. She is heavily involved in the annual fundraising event, Sip McMinnville Wine & Food Classic. Leslie Wolfe has lived her entire life in Yamhill County, and works with multiple local charitable organizations to help those in need. A few years ago, 20 To Advertise With Us, Call 503.825.2111

When considering loan institutions for your next home buying experience, there’s no need to look beyond Academy Mortgage!

HISTORY

Gasoline Prices: How 9/10th of a Cent Pricing Became Standard in the Fuel Industry By Robert Matsumura, Contributing Writer

Have you seen gas prices lately? They are out of control! And this prompted me to wonder, while waiting at the gas station for my tank to fill, why do gas prices end in 9/10 of a cent? After all, most products in the marketplace are priced in whole dollars and cents, so why do gas stations follow the practice of fractional pricing? In order to understand this seemingly arbitrary custom we must go back to the Coinage Act of 1792 which standardized the nation’s currency. One of the standards established in this act made legal pricing to the 1/1000th of a dollar (1/10th of a cent) which was commonly referred to as a “mill.” Shortly thereafter a half-cent coin was minted, and remained in circulation till 1857. Mill pricing was implemented for the issuance of stock, property tax assessments, and electricity bills, and remains common in the pricing of these commodities today. Fractional pricing did not apply to gasoline, however, till the 1930s. The Revenue Act of 1932 instituted an excise tax on gasoline of 1/10th of a cent per gallon. The following year the tax was increased to 1.5 cents per gallon. To most consumers today this may not seem like a lot of money, but when one considers that throughout the 1920s gas prices ranged from 20-30 cents a gallon, such a tax was indeed significant. With the popularity of the automobile in the 1920s, and the concurrent increase in the demand for gasoline to fuel the new vehicles, the price of gasoline had been on the rise. However, with the onset of the Great Depression, demand for gasoline began to fall and competition for customers between gas stations became fierce. By 1930, gas prices had declined to 20 cents per gallon, and would continue to fall throughout the decade to as low as 10 cents a gallon in certain parts of the country. Due to the dire state of the economy, consumers were 22 To Advertise With Us, Call 503.825.2111

keenly sensitive to prices. In turn, this price sensitivity made it difficult for gas stations to increase prices according to market conditions without generating a negative response from customers. Fortunately for gas retailers at the time, gas pump technology had advanced to the point where gas pumps could dispense gas to a fraction of a penny. With the ability to dispense gas in such a precise manner, gas station owners implemented the practice of pricing to a fraction of a cent in an effort to adjust prices without psychologically triggering the customer in a negative way. Initially, the fractional prices varied depending on the station, with 0.5 not being uncommon during the 1930s. As time passed, however, gas stations followed suit with other retailers who had learned that goods priced slightly less than those priced at a whole number ($2.99 versus $3.00) to the minds of consumers, seemed

significantly less, despite the fact that in reality the difference in the two prices was a mere cent. Infomercials today employ this exact tactic when offering products for three easy payments of $19.99 rather than simply advertising the product for $60, as $60 seems like a significant amount, while $19.99 resonates as a modest expenditure. It didn’t take savvy gas retailers long to realize that they could sell a lot more gas if they reduced their price by 1/10th of a cent rather than listing the per gallon price as a whole number.

do provide significant revenue for the gasoline industry. Studies have shown that Americans purchase approximately 178 million gallons of gasoline per day, which in turn amounts to a half-billion dollars in revenue per year.

were able to price fuel according to their own perceptions of supply, demand, and competition, but were required to price gasoline according to a government mandated formula that resulted in gas being priced in other fractional amounts such as 0.4 to 0.8, which frustrated drivers who were accustomed to 0.9 pricing at the pump. In response to a groundswell of negativity towards the unorthodox pricing, the mandates were lifted and retailers reinstituted the 9/10th pricing which has been our standard ever since.

“In the final analysis, no real advantage is gained either by the retailer or the consumer with the 9/10 pricing.”

Another reason for the effectiveness of the 9/10 pricing was the fact that most customers viewed the price of gas while driving by in their car. The main numbers drivers noticed on the gas price boards of a station while zooming by in their automobile were the whole numbers, not the fractions. People didn’t factor in the fraction of a cent into their decision to purchase at a particular station or not, so it was logical to price as close to a whole number as possible to maximize profits. Even though you won’t see fractional pricing on your credit card bill for the gas you purchased, the fractional profits

While it’s clear to see how a price change in cents could significantly impact consumer demand for gasoline when a 20 to 30 cents per gallon price prevailed, by the time the 1970s rolled around the price of gas had risen to 40 cents per gallon. At 40 cents per gallon, price changes in fractions of a cent were no longer necessary since a one-cent change in price amounted to approximately a 2% difference at the pump—an insignificant amount to most consumers. The 9/10 pricing as an industry standard came about in the wake of the Nixon administration’s temporary freeze on wages and prices in August of 1971, which were reinstituted again in June 1973. Gas stations no longer

In the final analysis, no real advantage is gained either by the retailer or the consumer with the 9/10 pricing. On average, the gas station makes approximately 10 cents per gallon on every gallon of gasoline sold. The 0.9 cent in the price accounts for about 10% of a station’s profit in a fuel market that is intensely competitive. As for the consumer, they receive precisely what they pay for at the pump, and the dispensers automatically perform basic rounding. Should the final price total with a fraction of a cent below 0.5, the price is rounded down. If the total is 0.5 or above, it is rounded up. This rounding procedure is common in retail. An example of this might be at the deli when you are purchasing sliced roast beef for $6.99 per pound. You might receive 0.51 pound of roast beef, but the price is rounded down to $3.56. This practice is also in effect in states that require sales tax. If a store must collect a 7.5% sales tax, the total will be adjusted up or down accordingly via the same method. So the next time you find yourself at the gas station gazing up at the electronic price board, remember that the 9/10 pricing, though seemingly random, has a history stretching back to the earliest days of the automobile, and in the end, works out equitably for both yourself and the owner of your local gas station.

McMinnville Community Advantage Magazine 23

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