Labour, Vehicles, and Fuel are your largest expenses. You may not be able to reduce labour rates nor easily and quickly change the mix of the vehicles in your fleet, but you have more control over fuel expense and the impact this has on your costs than you think. Your own bulk fuel facilities can deliver surprising cost savings and surprisingly provide increased security for your business.
What affects the price of fuel sourced through Retail Service Stations?
- Retailer’s profit margin
- Retailers expenses (rent/rates/maintenance/staffing/advertising/compliance etc)
- Card fees (monthly card fees/interest on debt/administration surcharges)
- Theft/Shrinkage (drive-off /theft losses are shared amongst paying customers)
- Cartage costs (cost of fuel delivered to fuel sites some distance from Vendor)
What other costs, perhaps not so visible, are associated with ‘Retail’ fuel purchases?
- Slower Retail fuel pump rates lead to longer refuelling time
- Food, beverage, and lounge facility temptations can lead to departure delays
- Socialising with other patrons/drivers can cause further delays
- Card misuse through the purchase of unapproved items can add to costs
- Card loss and replacement administrative expenses
- Account reconciliation time and expense for your administration staff
How do your own Bulk fuel facilities protect you from these costs?
- Bulk fuel, delivered in economical quantities, delivered efficiently and coordinated with your fleets’ consumption needs, will typically be the least cost fuel you can buy.
- Discretionary purchases when fuel prices are low as possible with your own tank
- With an approved and agreed Credit Facility, your terms may also improve cash-flow.
- One invoice for bulk fuel, versus an invoice for every fuel fill for every truck
- No retail site profit margin and extraordinary costs built into the price
- Your own Bulk Fuel Facilities are configured with Hi-Flow pumps with up to double the fuel flow rates of retail sites, leading to less time to refuel
- No Retail site distractions or unwanted driver/delivery delays
- No Retail site card administration expenses
- Bulk fuel tank Data Management computer fitted to your tank automatically accounts for fuel usage and runs on your own computer (data security)
- Large vehicle fleets can use lower cost labour to refuel vehicles before they depart
- You have fuel of a known and trusted high quality at all times.
And on the matter of Fuel Security, having additional bulk storage, only for you, on your site, can significantly protect your business from fuel shortages which may occur at Retail sites in high demand, or during fuel supply issues.
Bulk fuel facilities can be supplied as part of a Supply Agreement between you and Pacific Petroleum. We can provide many fleet fuelling options and we would be pleased to discuss an arrangement that would best suit your individual business needs. Contact Us!