Is Saving 1 Cent per Gallon Costing You Thousands of Dollars?

Tony Christensen |

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Buying fuel at the cheapest price every day sounds like good business sense, right? Unfortunately, this strategy isn’t always profitable. In fact, some fuel retailers who “shop around” can lose sales during peak times of the year. 

Here’s why.

Just like you, distributors are stretched for resources during demanding times of the year, especially in the summer. Distributor volume can rise by as much as 30% during this time. They can’t afford to have trucks waiting around at supply terminals for one-off sales when their committed partners need help. 

Large distributors invest the majority of their time and resources on their loyal customers, whom they often hold contracts with. The higher demand for fuel in the summer means that distributors work overtime to restock fuel retailer supplies and support them in any way possible. 

Unfortunately, this means that fuel retailers who don’t have a partner can be left hanging during peak times. Retailers located in rural or remote regions are especially at risk of running out of stock and needing to shut down for hours or even longer as they wait for a distributor to deliver more fuel or product supply.

What if you ran out of fuel and your supplier wasn’t able to restock your supply until the following day? How much do you stand to lose from a day without business, especially during peak times of the year. 

Your fuel supply depends on a lot. Don’t risk losing a day of business just so you can chase the cheapest price per gallon. Seasonal demand, weather, geo-political conditions, and regional fluctuations in price and supply are factors beyond your control.

Think long-term and consider:

  • Can you rely on just any supplier for daily deliveries?
  • Will the distributor you purchased fuel from today continue to deliver that same product at the same low price for the next week? What about the next year?
  • Who can you call to refresh your stock when your product runs low?
  • What would you do if you ran out of stock unexpectedly?
  • Is saving a few cents per gallon going to cover the cost of shutting down for a day (or more)?

Partnering with a reliable distributor isn’t just about your commitment to purchase fuel – it’s also about your distributor’s loyalty to you.

When you partner with a dependable distributor, you are guaranteed supply – every day. Because great partners are not just about delivering great prices – they’re committed to providing you dependable service and business profitability.