Purchasing bulk fuel is one thing, purchasing it the right way is another. If you have made some mistakes while purchasing wholesale fuel, don’t feel alone. Cities, states, trucking companies, gas stations, utilities, airports – you name it – have all made crippling errors in buying bulk fuel. The good news is that mistakes can be avoided. Below are five mistakes retailers make when purchasing bulk fuel.
Not taking the time to get all the facts
Sometimes buying bulk fuel can seem like a guessing game. You are trying to buy at just the right time to get the best price, but your tanks are nearly empty and you can’t wait any longer. Roller coaster market conditions make it difficult to keep gas prices down while still trying to manage your business.
You can avoid this mistake by taking some time each day to study the market and how prices are being affected in your region. Talk to your wholesale fuel supplier whenever prices are going up or down to get a better idea of what’s causing the fluctuation.
Not having a plan
Many bulk fuel buyers make their purchases out of fear that they won’t have enough supply when they need it. Instead, you can develop a plan that takes into account a detailed look at how much fuel you use each day, each month and each year. Then, work with your wholesale fuel supplier. Your supplier can help make sure that you have what you need while laying out the options you have to make sure you never run dry.
Not getting to know your wholesale fuel supplier
Having a good relationship with your wholesale fuel supplier is critical. However, having one who can only get your bulk fuel at their convenience isn’t a sign of a healthy relationship. Knowing your supplier on a personal level helps them – and you – understand what to expect. It’s a competitive industry; you should have no problem finding a wholesale fuel supplier that’s just right for you and your needs.
Not using a supplier with more than one source of fuel
Getting hit by the double-edged whammy of low supply and high price can happen if you are reliant on a single-source fuel supplier. These kinds of suppliers are susceptible to gas shortages and high prices. Verify from the beginning that your supplier has a network of available sources that are always dependable. Your wholesale fuel supplier should be upfront about how many options they have. Relying on a versatile supplier is always the best way to go.
Not making a long-term commitment
You might be hesitant about locking into a contract because you are afraid your wholesale fuel supplier will miss out on low prices. However, in a volatile market, stability is king. By getting a good contract that’s based on a steady benchmark index price, you will be paying better and more efficiently than your competitors. Also, you will be in a better position to negotiate your price if your wholesale fuel supplier understands your needs. By making a long-term commitment, you will eliminate the daily worry of trying to lock onto the lowest price out there.
At Kendrick Oil, we are committed to providing high-quality, bulk fuel to convenience store retailers. If your business is in need of wholesale fuel or if you have any questions about any of our products and services, give us a call at (800) 299-3991. You can also Contact Us by email for more information. We have locations in Texas, New Mexico, Oklahoma, Kansas, Colorado and Louisiana.