# PSP COMMENTS



## Ed Gagnon (9 Mar 2006)

Hi folks,

As a PSP Manager for ten years, I welcome comments from military members about PSP in general.  I find that most military members do not understand how NPF and base funds work and are completely in the dark about PSP issues.  This is actually understandable as the area of public funds and non-public funds is rather complicated.

I would welcome any comments about PSP and the services provided at the base level.

thanks,

Ed Gagnon
PSP Manager 
CFB Petawawa


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## GO!!! (9 Mar 2006)

Ed,

Is there any truth to the persistent rumour that CANEX/NATEX is owned by a group of retired generals, who arranged for their business to have free rent and a monopoly on CF bases, in exchange for a portion of the profits going to PSP?

If not, given that most rumours have an element of truth, where did this rumour originate?


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## Ed Gagnon (9 Mar 2006)

Hi GO!!,

This rumour started late one dark Friday night in a mess far, far away.  Some comedian started this rumour and it has continued ever since.  CANEX/NATEX is essentially owed by all soldiers...we all benefit by the profits that are generated by CANEX.  Your base fund receives 1.5% of all CANEX sales.  In the case of Petawawa that adds up to about $200K per year which we use to provide quality of life activies and programs.  As well, CANEX and SISIP also provide each base with funds based on the number of soldiers.  For Petawawa, we are provided with an additional $140K per year.  This is serious money which goes a long way to providing lifeguards, staff to man the gym both during the day and at night, recreational programs for our military families, fireworks for Canada Day and many other things that most folks don't even think about.

There are no Generals getting shares or any of the profits from CANEX/NATEX.  It all goes back to improving the quality of life of our military community.

thanks,

Ed


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## Gunner (9 Mar 2006)

GO!!!, quite trolling.  

http://forums.army.ca/forums/threads/35315/post-345560.html#msg345560

Ed Gagnon, has opened himself up to questions, ask something intelligent.


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## Ed Gagnon (9 Mar 2006)

Gunner,

You are absolutely correct!  PSP is such an easy target...a bunch of civies who can't defend themselves and honestly don't try.  So I am prepared to answer any question...if I don't know the answer I will try to find it.

thanks,

Ed


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## Zoomie (10 Mar 2006)

Hi Ed,

Thanks for coming on these means.

I have a question about the CANEX.  I understand that the prices set in a convenience store style CANEX are on par with other convenience stores.  In the case of many bases the CANEX may be the only source of groceries for live-in personnel that is easily accessible (i.e. no car to drive into town).  Is it really fair to charge these troops outrageous convenience store prices vice that what would be found at the local full-service grocery store?  I have had to bite the bullet on many occasions in my local CANEX, I would shop there a lot more if they offered more competitive pricing.

CANEX is also only for CF members, DND employees, RCMP employees and all families of said organizations - why don't you actively enforce this rule and thus be able to offer bargain prices knowing that the people getting the good deal are those for whom you are there to support.


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## Ed Gagnon (10 Mar 2006)

Hi Zoomie,

I can't answer this question off the top of my head.  However, I have forwarded it to the PSP Mgr in Comox and asked her to speak to the CANEX folks in Comox to get a reply.

Pls wait out.

Ed


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## Franko (10 Mar 2006)

Ed,

Question in regards to the pricing of item in the CANEX overseas, either Bosnia or in KAF....

Why are the prices in these locals so inflated? 

Just as an example...when the CANEX in Zgon converted from DM to the Euro the prices stayed the same ....only the currency tag changed.

IE: Mach 3 razors....14 DM = 14 Euro (which when converted to Canadian dollars is absolutely ludicrous)

In KAF the prices are astronomical....when you can go down the road a bit to the PX and get it for at least 25% off, well you get the idea.

Thanks for your answer in advance.

Regards


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## DG-41 (10 Mar 2006)

Ed,

If one has a product they want to see sold in a CANEX, who do they have to talk to, and what is the process?

DG


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## Ed Gagnon (19 Mar 2006)

Hi Zoomie,

I have received a response regarding the issue of prices in the convenience store in Comox.

Our CANEX here in Comox is classed as a convenience/retail store.
> Unfortunately we cannot purchase like a Wal-Mart, SuperStore or Thrifty's.
> We have to use the middle man to purchase our goods like all convenience stores.
> Our cost prices in many cases are more than the other grocery stores retail prices.
> It does not matter who our customer is, our pricing structure is fully based on cost vs. retail.
> CANEX HQ is currently trying to set up deals with suppliers so we can offer better pricing in the market.
> I hope this answers your questions.

As for unauthorized patrons, all Canex stores attempt to screen clients but some slip through on occassion.

thanks,

Ed Gagnon
PSP Mgr
CFB Petawawa


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## Michael OLeary (19 Mar 2006)

Ed Gagnon said:
			
		

> Our CANEX here in Comox is classed as a convenience/retail store.
> > Unfortunately we cannot purchase like a Wal-Mart, SuperStore or Thrifty's.
> > We have to use the middle man to purchase our goods like all convenience stores.
> > Our cost prices in many cases are more than the other grocery stores retail prices.
> ...



Ed, I suppose this then begs the question of why does the profit margins sought by Canex gave to follow that of other retail stores?  Also, what overhead is directly paid directly by the Canex retail operations?  What costs of the physical establishment are offset by DND?  Could not better controls on who can shop (such as found in American PXs) lead to allowing better deals for service members?


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