When purchasing wholesale fuel in bulk, gas station owners often tend to make crippling mistakes that are actually quite easy to avoid.
This blog overviews the two biggest mistakes gas station owners make when purchasing wholesale fuel in bulk and discusses how you can avoid them.
Mistake #1: Not tracking fuel prices
The whole idea of buying wholesale fuel is to take advantage of cost opportunities presented by fluctuating crude oil market. However, it’s often seen that many gas station owners purchase wholesale fuel in bulk without tracking fuel prices. In other words, they buy blind.
The main reason for this lack of due diligence can be attributed to the practice of panic buying. Gas station owners typically purchase fuel when their inventory is nearly exhausted. Overwhelmed with the fear of running dry, they scramble for a purchase, signing off any invoice that’s presented to them.
To avoid such situations, it’s vital that you establish a complete understanding of your daily, weekly and monthly fuel requirements. It will help you to know the right time to order a new stock of fuel without running it late.
Also, use automated tools to keep track of fuel prices in the market to make an informed decision when purchasing wholesale fuel in bulk.
Mistake #2: Relying on a supplier with only one source of fuel
Gas station owners who rely on suppliers with only a single source of fuel easily fall victim to the dynamics of local fuel markets.
Suppliers with only one source of fuel are often vulnerable to issues of supply shortages and high prices and pass the resulting pain to gas station owners. Since gas station owners don’t have an alternative avenue, they agree to purchase wholesale fuel at market-inflated prices.
When signing a contract with a wholesale fuel supplier, check that the supplier has a dependable network of fuel sources. If possible, maintain a contact list of multiple suppliers to adequately switch between suppliers when one supplier is quoting a price too high.
Do you purchase wholesale fuel in bulk? What has been your worst experience when purchasing wholesale fuel in bulk from a supplier? Let us know in the comments section below; we’d love to hear from you.
John W. Kennedy Company is your one-stop shop for high quality gas station equipment and supplies. We sell everything you need to keep your gas station operational, safe and efficient. Visit our online store to view our complete product catalog.