Fuel Supply Agreement For Gas Station

Most consumers are familiar with the major brands of fuel sold in convenience stores. In many cases, these brands have been an important part of the U.S. economy for more than a century. In addition, with about half of convenience stores selling a brand of fuel to one of the 15 major refineries/suppliers, consumers may consider that an activity that sells a certain brand of fuel is owned by that fuel company, which is not often the case. A small percentage of gas stations belong to one of the large integrated oil companies. The company most likely signed a contract to sell a specific brand of fuel, and as part of that agreement, the company also receives marketing support and signage to promote the fuel brand. This contractual relationship for fuel is similar to that of the company, where beverage companies often help supply branded fountain distributors who spend a branded beverage. Both the oil company and the beverage company help the retailer sell products, but that doesn`t mean they own the store. Other convenience retailers prefer to be unmarked. At unmarked stations, the fuel brand is usually identical to the company name.

While this fuel does not have a proprietary additive package, it does have a general set of additives that meets all federal and local fuel requirements. Stores usually try not to be marked when they feel that their store name is strong enough to give confidence to their product. A branded fuel can also determine where certain customers buy. While price remains the main determinant of buying gasoline, one in nine motorists (4%) considers the fuel brand to be the main reason for their purchase decision. A brand contract also guarantees the supply of fuel, especially when stocks are scarce. Supply guarantees can also compensate for extreme price fluctuations in wholesale gas markets. While inventory is scarce, unsused retailers may find it more difficult to obtain products, as oil companies serve their businesses, brand contacts, and other contracts first. If supply is limited, it means that the remaining unsused retailers have to compete for what`s left – and wholesale prices are often much higher. If you need or need to supply a large amount of fuel, you can use a fuel supply agreement. Whether you`re a farmer, operating an equipment rental, providing fuel, and about to sign a new customer, a fuel supply contract can help you sketch out the terms of your relationship – when, where, how and how much. For convenience stores, trademark registration can lead to consumer recognition. More than half of the convenience stores that sell fuels (58%) are individual stores, so a brand contract with a large refinery/supplier immediately offers a retailer a brand known for its premium product: fuels.

One of the essential elements of operating a service station is a contract with a fuel supplier. There are several aspects of gasoline supply contracts that a station owner must consider. You`ll also want to know which brand has the best technology, most of the industry`s innovations, and the best customer perception. Gas and convenience stores are no longer just gas and convenience stores – they create an experience for the customer. With new technologies such as smartphone payments, customer cards, and high-level images, you should make sure that the brand you have in mind follows the competition before signing fuel supply contracts. See the type of credit you receive when purchasing fuel before efT or e-money transfer is used to pay for it. For example, you can get five or seven days of credit – the number of days from the date of fuel purchase before your account is intercepted to pay the bill. This will be written into fuel supply contracts, so make sure you know exactly what the terms are and that they are appropriate for you and your business.