Every gas station needs a wholesale fuel supplier, but no two suppliers are the same. Before you begin choosing a supplier, you’ll want to understand the differences between branded and unbranded fuel.

The following information will help you make an informed decision about whether branded or unbranded is best for your gas station.

What Is Branded Fuel?

You know how you’ll drive past a gas station and the sign outside will have a big, recognizable name and logo like Sunoco, Marathon, or Gulf? Those gas stations are selling branded fuel.

Branded fuel is sold under a major brand name, but that’s not the only difference between branded and unbranded fuel. These big brands add proprietary additives to their fuel, such as detergents or antioxidants, that they claim can help improve engine performance.

Something to keep in mind: Just because a gas station sells branded fuel doesn’t mean it’s a big corporate-owned c-store. In fact, most of these gas stations have independent owners. The owners are just partnering with a branded fuel supplier.

Advantages of Branded Fuel

Working with branded fuel can come with a few huge benefits, mainly surrounding the brand’s support and consumer trust.

Brand Support & Advertising

Partnering with a brand gives you tons of marketing and advertising support. Brands often offer signage, promotions, rewards memberships, and more that can help draw traffic to your c-store. Not to mention local or national ads the brand might run, increasing awareness and sending even more guests to your business.

Brand Recognition & Consumer Trust

Most consumers are going to stop at a gas station with a brand they recognize, making this one of the biggest pros to branded fuel. Now, if you’re the only game in town, you may be just fine with unbranded. But if your gas station is on the same stretch of highway as a Marathon, Valero, and Chevron, you might fare better with a brand partnership.

Disadvantages of Branded Fuel

Even with the benefits of brand support and recognition, branded fuel still has some potential drawbacks. You need to consider your profit margins and how important flexibility is for you.

Less Flexibility with Contracts

Branded fuel often comes with stricter contracts. Many brands will require you to adhere to strict standards regarding how your c-store looks. They may even require you to meet sales quotas. And, you have basically no negotiating power when it comes to fuel costs. So, if flexibility is a must for you, you might want to consider unbranded fuel.

Higher Fuel Costs

Not only is it difficult to negotiate the cost of fuel when you go the branded route, but branded fuel is on average 5 to 10 cents more expensive per gallon. However, many c-store owners view the marketing boost and consumer trust as worth the extra cost. After all, if having a name brand tied to your c-store brings in more customers, you can more than make up for the pricier fuel.

What Is Unbranded Fuel?

While branded fuel might be more commonly spotted, not every gas station has a big brand attached to it. Sometimes, you’ll drive past a gas station with its own branding on all the signage. These gas stations are operating with unbranded fuel.

Unbranded fuel still meets federal requirements for fuel and is the same base as branded fuel. However, it doesn’t have any of the special additives of branded gas. And with no brand attached, you get to use your own brand imaging.

Advantages of Unbranded Fuel

What about unbranded fuel draws in some c-store owners? Price and control are the two main benefits.

Lower Prices

Since you don’t have a brand shelling out for additives, marketing materials, and advertising, you get a cheaper price per gallon with unbranded fuel. You may be able to pass on these savings to your customers, attracting even more customers if your competitors prices are higher.

More Control Over Your Business

WIth unbranded fuel, you’re not at the mercy of a big brand. You have total freedom over your c-store’s image. Plus, you can negotiate prices and shop around with different suppliers to find the best gas and rates for your customers.

Disadvantages of Unbranded Fuel

Lower fuel costs and more business freedom are both great advantages. But you shouldn’t immediately choose unbranded fuel without first learning a few of the downsides, like the lack of brand trust and deprioritization during shortages.

You Have to Earn Brand Trust

Consumers will automatically trust a brand they know and recognize, so if you’re selling fuel under your own brand, you’ll have to work a bit harder to gain that trust. However, earning the trust of your customers isn’t impossible. For example, if you operate in a small, tight knit community where you know everyone by name, unbranded fuel might be the right choice for your c-store.

Lower Priority During Fuel Shortages

Fuel shortages happen, and you never know when they might hit. Big brands have priority during gas shortages due to their contracts, which can cause the prices of unbranded fuel to skyrocket. You may come out fine during a shortage, but not every gas station owner wants to take that risk.

Branded or Unbranded, Venture Fuels Can Help

Experience the ultimate convenience and peace of mind by choosing Venture Fuels as your reliable wholesale fuel supplier. With our extensive range of branded and unbranded fuel options, you can find the perfect fit for your business needs. Trust in our commitment to delivering top-notch fuel that keeps your operation running smoothly. Contact us today for a consultation.

The Fuel Supply Dilemma: Branded Fuel vs. Unbranded Fuel