Royal Farms Sparks Gas War

A once-vacant plot of land at the corner of Annapolis and Blue Water roads has morphed into a new Royal Farms gas and convenience store that has not only dramatically changed the once staid gas scene, but eliminated a run-down corner adjacent to Fort Meade.

"I'm coming here now because of sheer convenience," said Ronald Smith of Odenton, as he finished filling up his car on a busy Sunday morning. "They have the lowest gas price and the best fried chicken in the area. Great cigarette prices too."

Other area gas stations have responded to the Odenton Royal Farms low prices by dropping their prices to compete. Local Exxon-Mobil, Shell, Hess, BP and Sunoco stations all featured prices within one or two cents for all grades of gasoline and diesel during a recent random survey. A gallon of regular gasoline at Royal Farms is now $2.53 and was priced as low as $2.49 this month.

Several other customers noted the fried chicken and gas prices as determining factors in using the new store. However, Kevin Moriarty of Odenton, cautioned about just using price to choose your gas station.

"People forget that one reason a gas price can be lower is that the fuel is altered by adding ethanol or oxygenated. This also affects gas mileage," he said while leaning against his SUV as the tank filled with fuel. Moriarty said he used Royal Farms because of its good fuel quality and proximity to his home.

As home to thousands of troops and their support staff and several federal agencies, the Ft. Meade population is growing due to the BRAC (Base Realignment And Closure) units sprouting up on base, and government contractors expanding in the surrounding communities. It's a car commuter post, and that means the need increases for more gasoline and diesel to fuel that traffic.

Local truckers seem to be changing their fueling habits just like Odenton area auto drivers. Lou, the owner of DAC Sales in Gambrills was driving a flat bed tow truck and pointed out that the Odenton Royal Farms diesel price was "20 percent cheaper than where I'm going" as he finished filling up his tank. Lou, who didn't give his last name, said he was headed to central Pennsylvania.

Famous for fried chicken, low prices and a large convenience store inventory, Royal Farms has opened almost 150 stores in the region, including stores in Pennsylvania and Virginia.

At least one study of Royal Farms' marketing success is being popularized by vendor Skyline Products of Colorado Springs, CO, on their Skylineproducts.com Web site. The study points out the quick speed that Royal Farms can change their prices on signs, registers and pumps using Internet and automated systems from company headquarters in response to local and regional competitors, and changes in new contract gas and diesel  prices.

Ted Butler of Odenton explained his Royal Farms presence on a Sunday morning: "Good gas price and donuts in the same spot."

Ted was accompanied by several youngsters who were waiting patiently in the car for their pending treat.

Jim Ludwick is the owner of Odenton-based MainStreet Financial Planning. He can be reached via jim@adviceonly.net