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Founders of Folk Oil Company
Folk Oil Company, Inc.
currently manages 26 retail
locations, and all are
within a 45-mile radius of
Homer, Mi. Folk Oil’s roots
began in 1921 with L.H.
Folk, a Standard Oil agent,
providing fuel oil and
lubricants to rural
homes/farms in Calhoun
County, Mi. L.H. Folk’s
successors were his son
Robert Folk, and Richard
Folk the current owner who
is the grandson.
Robert Folk, a 1939
Homer
High School graduate,
initially gained gas station
experience working for his
brother-in-law, Ralph Yost,
at the Homer Yost Service
Station, in Homer, Mi.
Robert left the service
station to serve his country
during WWII.
After the war, Robert
returned to Homer and began
working for his father in
1945. He became sole owner
of the business in 1963.
Twenty-eight years later,
Robert relinquished control
of the business in 1973 to
his son Richard
Founder’s Motivation and
History of Major Changes
Robert acquired different
several businesses during
his leadership. Robert
started Folk Oil’s first
gas/service station after
purchasing his first piece
of property in 1963, which
since has ceased operation
and is now the site of our
new corporate office,
located in Homer, Mi. In
1965, Robert started a fuel
oil furnace business that
complemented his petroleum
business and helped retain
existing customers.
In 1969, Robert took a
giant leap and switched from
a Standard Oil Agent to a
Mobil Oil Jobber. Robert
wanted to own a business,
rather than just being an
agent, and Mobil Oil was
willing to accommodate him
whereas Standard Oil only
wanted him to be an agent.
The Mobil Oil Jobber
business venture required
Robert to purchase land,
which he did at 4407 M-99
South, Homer, Mi., and he
installed four 20,000 gallon
above ground tanks to store
the fuel in bulk. This site
became the Folk Oil
corporate office until the
new corporate office was
completed in 1999. Four
years later in 1973, Folk
Oil installed its second
bulk plant in Albion,
Michigan, enabling the
distribution of fuel to a
greater geographic area.
Up until 1982, Folk Oil
did not have a transport
truck, and a common carrier
delivered approximately
10,000 gallons of product at
a time to the bulk plants.
Folk Oil used their
2300-gallon tank wagon truck
to distribute the product
from the bulk tanks to fuel
customers, and also to the
Folk Oil convenience stores.
In 1970, Robert purchased
an existing Homer, Mi.,
propane business to further
strengthen his fuel heating
market share. The propane
business was very
successful, gaining market
share from competing
businesses. At the time
Robert entered the propane
business his competition was
not open on weekends, nor
were they open at night.
Robert saw the opportunity
and quickly gained market
share by selling propane at
night and on weekends to
service the crop drying
market.
Richard Folk became
president of Folk Oil in
1973 after Robert suffered a
heart attack, but prior to
becoming president, he
received several years of
petroleum experience away
from Homer, Mi. This
experience gave him a
competitive edge over
existing businesses when he
returned to Homer. Richard
Folk graduated from Western
Michigan University, in
Kalamazoo, Michigan, with a
Bachelors in Science and a
minor in business. In 1968,
Richard worked for Mobil Oil
Corporation in the marketing
and training department
before being drafted. He
returned to Mobil Oil in
1971 after completing his
military service. In 1972
Richard went to work for
Clark Oil in the wholesale
division, selling product to
jobbers and distributors.
After the fuel shortage that
occurred in 1972, Richard’s
job was eliminated at Clark
and he returned to Homer to
help his ailing father run
the business.
In 1974, Folk Oil
purchased the Homer Yost
Service Station that became
known as the “Pop Shop
(PS),” and it became the
first Folk Oil convenience
store, selling fuel, food,
and drinks. Folk Oil
Company, Inc., now does
business under the assumed
name, “PS Food Mart.”
The “Pop Shop” had a
significant impact in the
early success of Folk Oil’s
first convenience store.
Many grocery stores did not
want the hassle of returning
the bottles, hence, sold
non-returnable bottles of
pop. Richard devised a
lucrative method of
returning bottles and sold
returnable bottles of pop,
thus undercutting his
competitor’s pop prices.
Starting in 1976 the “Pop
Shop” concept was replicated
at the newly acquired Folk
Oil convenience stores in
Spring Arbor, Mi., Albion,
Mi. and Marshall, Mi.
In 1981, Emro Propane
offered to buy the propane
business from Folk Oil.
Richard felt the propane
business had peaked and
realized it was an opportune
time to sell the business.
After selling the propane
business the money was used
to pay off all the existing
debt and expand the
business.
Between 1981 and 1982,
Folk Oil purchased
convenience stores in
Coldwater, Mi., and in Union
City, Mi. The turning point
and commitment in running
convenience stores greatly
increased when Folk Oil
accepted an offer from
Checker Oil, in 1982,
purchasing three existing
convenience stores located
in Marshall, Mi., Albion,
Mi., and Battle Creek, Mi.
A long-time working
relationship between Richard
Folk and Bob Watkins of
Watkins Oil, located in
Hillsdale, Mi., enabled a
joint venture in 1984
between Watkins Oil and Folk
Oil, forming a separate
corporation known as
Convenience King Group,
Inc. A joint venture was
favorable since Watkins Oil
provided the opportunity to
buy the four convenience
stores and Folk Oil provided
the expertise to manage the
business.
In October 2001 the fuel
oil business was sold to
Owens Petroleum out of
Albion, Michigan, along with
the lubricant division. A
large bulk fuel retailer
made an offer, but to help
out the little guy, Owens
was the preferred buyer.
Because of stringent
guidelines foreseen to be
enacted by either the
Environmental Protection
Agency (EPA) or the Michigan
Department of Environmental
Quality it seemed to be an
opportune time to sell the
business. The above ground
tanks used to store fuel at
the bulk plant in Homer,
Michigan, would have
required a major outlay of
money to bring the up to
expected environmental
standards. This upgrade of
the tanks would have taken
many years of profit to gain
back the investment. Also
it was predicted because of
stiffing competition from
major bulk fuel retailers
moving into our market it
was a good time to consider
selling. One final reason
for selling was the desire
of long-term employed Jim
Boyd’s desire to
semi-retire.
Folk Oil currently owns
and manages the following
businesses: ten wholly owned
convenience stores, ten
convenience stores under
Convenience King Group,
Inc., five convenience
stores under R & J, Inc.,
and one convenience store
under the legal name of 115
Truck Stop, Inc. In
keeping up with providing
the latest services, several
stores have car washes,
quick-serve restaurants
(Subways, Taco Bell, A&W),
and two locations have
full-serve restaurants,
known as Denny’s and the 115
Truck Stop Diner.
Several other people have
contributed to Folk Oil’s
success as follows:
·
Jim Boyd has been in charge of the sales and distribution of
fuel,
and lubricants since he was
hired in 1960.
·
Tom Foltz, hired in 1965 and retired in 1998, provided the
expertise
for installing furnaces, and
he later was the chief of
maintenance
for all our business
locations.
·
Joe Hagenbarth, hired in 1986 for his computer and accounting
knowledge, instituted the
first Folk Oil PC computer.
·
Ed Heath, hired in 1986, has contributed his knowledge in
operating convenience
stores, and has been a key
player in
technological advances over
the years.
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