Fuel Supply Agreement For Gas Station

For convenience stores, the brand name can lead to consumer recognition. More than half of convenience stores that sell fuel (58%) are single store companies, so a branded contract with a large refiner/supplier immediately offers a distributor a familiar brand for its high-end product: fuels. In addition to branding costs, fuel supply contracts generally represent the amount of fuel a retailer must sell each month. This varies depending on the oil company, so make sure you can meet these requirements before signing a contract. You`ll also want to know which brand has the best technology, the most professional innovation and the best customer perception. Gas and convenience stores are no longer just gas convenience stores – they create an experience for the customer. With new technologies such as smartphone payments, loyalty cards and high-level images, you want to make sure that the brand you have in mind is in line with the competition before signing fuel delivery contracts. In most cases, brand-free gasoline has lower wholesale prices because the additional benefits of branded fuel are not included, whether it is marketing support, additives or market information. Unbranded retailers can find the best « deal » for wholesale products on the open market, regardless of brand.

You can also enter into delivery agreements with a branded company to buy fuel sold as unbranded. Find out what you get for your station`s branding from a specific oil company that bears branding. These conditions are stipulated in black and white in fuel supply contracts. Depending on what your current station brand is, the money available and the state of the image, you may have made great upgrades such as four-poster fascias, lighting, gas price tags and gas pumps. Some of these upgrades may be required according to brand standards, and some may be a personal preference of the station owner. In any case, in the context of fuel supply contracts, you should always understand what are the costs covered and the likely costs of branding and upgrades when all is said and done. Find out what usually happens in a station branding by reading our blog here. Also find out what the impact is on the fuel – the margin above the rack (the price when the truck picks up the fuel on the power terminal). The margin is essentially the processing tax. All oil distributors should make the prices of their respective supply terminals available to their customers. Southeast Petro has a portal on its website where customers can register at any time of the day, seven days a week to see Rack`s current daily prices. Other convenience retail outlets prefer to be brandless.

At unbranded stations, the fuel brand is usually the same as the shop name. Although this fuel does not have a package of proprietary additives, it has a general additional package that meets all the requirements of the Confederation and local fuels. Stores generally try not to be stigmatized when they feel their store name is strong enough to give confidence to their product. A branded fuel can also determine where some customers want to shop. If the price is still number one for gas purchases, one in nine motorists (4%) The fuel brand is the main reason for its purchase decision.

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