For a consumer, purchasing fuel is simple: pull up to the pump, pay, and fill up! But for the gas station owner, procuring fuel is a little more complicated. Not only do you have to find a fuel supplier, but you also have to manage prices, balance margins, and ensure you’re getting a quality product — reliably. You may be wondering where to start and how to buy gas wholesale.
HOW TO BUY WHOLESALE FUEL
Whether you’re getting ready to open your first gas station or are shopping for a new fuel supplier for your established store, there are a few factors that you need to consider before signing a contract.
SHOULD YOU BUY BRANDED OR UNBRANDED FUEL?
When thinking about how to buy gas wholesale, an important question to ask yourself is if you want to buy branded or unbranded fuel. Different fuel suppliers have contracts with major oil brands like Marathon or BP.
With branded fuel, your customers have an element of brand recognition and loyalty. In addition to carrying recognizable names, branded fuels also contain additives meant to improve engine performance. Branded fuels are typically a few cents more expensive per gallon than unbranded fuels.
On the other hand, you may choose to offer unbranded fuel instead of a name brand. Unbranded fuel has the benefit of being a few cents cheaper for you to purchase, making for better margins and the opportunity to offer your customers a lower price than some of your competitors. Using unbranded fuel also means you can pick fuel at the best prices instead of being stuck to a particular brand and forced to pay the cost of that specific brand’s fuel.
However, with unbranded fuel, your station lacks the instant trust and name recognition of branded fuel. Potential customers may not know what to expect and may choose to keep driving for a branded station — even if it costs a little more. You may need more branding work and time to earn local consumer trust!
HOW TO PICK A WHOLESALE FUEL SUPPLIER
Once you decide whether you’d prefer branded or unbranded fuel, you must sort through local wholesale gas suppliers to purchase your fuel. Looking for wholesale fuel suppliers may seem daunting, but it can be as easy as an internet search. Wholesale gas suppliers, also known as fuel jobbers, are plentiful throughout the country. For example, Venture Fuels is based in La Crosse, WI but services 13 states in the Midwest!
When considering different jobbers, there are a few questions that you should ask before signing a contract.
WHAT IS YOUR SUPPLIER’S FUEL AVAILABILITY?
Fuel is your business’s lifeblood, and running out of gas at your station can be disastrous. When picking a jobber, ensure they are available to provide fuel when needed.
With Venture Fuels’ SmartFill program, we monitor your fuel levels to ensure you always have plenty of gas. We also monitor truck availability and market-wide fuel sales to ensure that when it comes time for your fuel to be pulled, you’re getting it at the best price at the right time.
HOW MUCH DOES THEIR FUEL COST?
Every fuel jobber has different supply contracts and partners, different daily allocations, and different terminals that their trucks can pull product from. This drastically affects how they price their fuel each day to their customers. To ensure you’re getting the best price possible, you need to be comfortable with the sophistication of your jobber’s buying reach and transportation network. At Venture Fuels, our team of experts monitors the petroleum market to make sure you’re getting the best price possible at all times.
WHICH FUEL TYPES DO THEY OFFER?
Do you plan to sell unleaded gas? Diesel? Or even alternative fuels such as biodiesel? Finding a fuel supplier that offers all the products you wish to sell is crucial. A reputable supplier will have extensive knowledge and experience with different fuel types and can safely handle those products for you.
WHAT ADDITIONAL BENEFITS DO THEY HAVE?
While price is undoubtedly an essential factor when picking a fuel supplier, cheap fuel can come at a high cost. Check online reviews of your potential suppliers to see what experiences others have had to deal with them. Unreliable deliveries, unsafe handling practices, questionable products (especially unbranded), and poor customer service can be reasons to pause.
Fuel suppliers with slightly higher prices but better services may be worth the additional cost for peace of mind, high-quality fuel, and reliable service.
VENTURE FUELS IS HERE FOR YOU
Venture Fuels is here to help you and your c-store succeed. Whether you want a branded or unbranded fuel solution, our network of regional and national suppliers means we can bring you quality fuel at a price point you’ll love. Reach out today, and we’ll gladly set up a consultation.