You are in the business of selling fuel, and deciding what kind of fuel to sell is one of the most important decisions to make. As a business owner, you may decide to take the branded route and go with a well-known fuel supplier; or you can select unbranded fuel and create your own unique storefront. Humboldt Petroleum is here to help you evaluate your options.
Many consumers purchase branded fuel (such as Chevron, Shell, or Texaco) because they perceive the quality to be higher than unbranded options. Branded fuels contain a cleaning additive in their TOP TIERTM fuel products to keep the gasoline cleaner and keep engines running more smoothly.
Consumers develop trust with a particular brand, and will drive out of their way to purchase their favorite brands. Regardless of the brand you choose, you will have the benefit of signage, logos, and brand colors to attract both new and existing customers to your location.
The downside is that branded fuel costs an average of 5 to 15 cents more per gallon and of course, you have to buy from that brand’s supplier. This additional cost goes towards paying for the cleaning additive and for the marketing and licensing of the brand.
When you choose the unbranded fuel route, you get to make all the decisions for your business: from its name, to its logos and its operating policies.
You typically don’t have a contract with one specific fuel distributor, so you make the decision where to purchase fuel from to maximize your profit margin each time you order fuel. However, keep in mind that without a contract you may fall to the bottom of the list to receive fuel in the case of a fuel shortage.
Even though its possible to buy fuel from the same distributors as branded fuel, the fuel you purchase won’t contain those additives found in branded fuels. However, any fuel on the market must meet regulatory standards for quality. Many consumers are looking for the best cost and you will have a little more flexibility to price yours less than a branded competitor if you choose.
Do all of these factors confuse you about which solution is best for your business? Our experts at Humboldt Petroleum are here to help you sort through it all! We’ll help you decide which type of program to choose and get you started on the path to business success. Give us a call today!