Gas stations, trucking companies, cities and states, construction projects, airports, utilities, and any one else who needs to buy wholesale fuel, often make 5 crippling mistakes that are actually easy to avoid.
Mistake #1: They don’t, or think they can’t, take the few minutes needed to get the facts on high prices.
You wince every time you have to sign the check for the fuel you can’t be without. You hope you’re buying at the right time to get the best price you can, but it feels like a guessing game, not really understanding what’s probably the most volatile market on earth. So, as usual, your thirsty tanks out-vote your nagging doubt, and you sign it anyway.
But, there’s good news: You can get a handle on the factors that impact the price of fuel each day, where they’re trending, and why. Fuel buyers who spend about 10 minutes a day asking the right questions and using the right tools can increase their pricing IQ, buy better, save money, build confidence, and gain a great advantage over their competitors. Each day you should ask: “Why did prices go up or down today?” “What is affecting them in my region?” “Is now the best time to fill my tanks?” It’s easy to get familiar with daily trends on the NYMEX fuel exchange for an easy-to-use tool to understand how fuel is traded and priced in the U.S. And be sure you can talk to your supplier anytime about why prices are going up or down in your region, and what is affecting them.
Mistake #2: They live in fear they’ll not be able to get fuel, but still only buy when their tanks are running on empty
Buyers without a plan will always be afraid that, at the time when they most need fuel, they won’t have it, bringing their business to a screeching halt. No fear! The best way to make sure you always have fuel is to have a plan. Know the amount of fuel you go through each day, month, and year, and work with a supplier who will guarantee you will always have what you need. Your supplier should lay out the many options available to meet your fuel needs so you won’t have to fear running dry. And don’t forget to purchase a good tank, see Octane if you need one.
Mistake #3: They use a supplier with only one source of fuel
Fuel buyers who are dependent on a single source of fuel can easily fall victim to the two-edged sword of low supply and high price. Single-source suppliers are vulnerable to fuel shortages and high prices and will pass the resulting pain on to you, so it’s smart to verify now that your supplier has developed a fail-safe network of dependable fuel sources. Just ask. A confident supplier should be forthcoming about how many options they have when it comes to meeting your needs.
You can plan for the unexpected by relying on a versatile supplier with multiple fuel sources and the ability to deliver, despite any pipeline squeeze in your area.
Mistake #4: They don’t get to know their suppliers
We know how frustrating it is: Just when you need them most, you can’t get a hold of your supplier. Voice mails, unreturned calls, and unanswered emails make a bad situation worse. Is your supplier really available 24/7? Do they answer their phone or even return your calls? A good relationship with your supplier is an important part of your bottom line, so if your fuel needs are typically met at your supplier’s convenience, fire ’em and partner with a supplier on your side. Make sure you know your supplier on a personal level, and that they know you and what you expect. In an industry as competitive as ours, you don’t have to settle for second rate.
Mistake #5: They shy away from a long-term commitment
Many fuel buyers are afraid to sign a contract, thinking they’ll miss out on that low price they think they’re scoring by frequently jumping between multiple suppliers. But, think about it: in as volatile a market as fuel buying, stability is king. With the right contract, based on a steady benchmark index price that moves with the market, you can be assured that you’re buying consistently better and more efficiently than your competition. If your supplier understands your fuel needs, and you are willing to commit to the gallons, you are in a great position to negotiate a great price – dumping the daily worry ritual. Like we’ve seen time and again, you’ll wonder why you didn’t do it sooner.
Yes, we are different. And, we think, better. Desert Fuels has steadily grown to be one of the largest and most dependable petroleum wholesalers and marketers throughout the Southwest and beyond. And for good reason:
At Desert Fuels, we’re always looking out for the best deal for us and our customers. We win, they win. We’ve negotiated favorable fuel contracts with multiple suppliers in every region that we serve – ten states and growing. So we can deliver where and when the need arises.
We want our customers to have the confidence and peace of mind that they are buying smart, at the best prices, and at the right time. And we want to pass on the tools that we use so that you too can make good buying decisions.
We’ll take the time to learn your company and its fuel needs – and we’ll do everything we can to take away the fear of the unknown and demystify the crazy world of purchasing fuel.
Our innovative approach is nothing short of a fuel industry revolution:
▶ To transform the archaic and backward “way we’ve always done things,” to new and advanced technologies that deliver real-time data needed to make real-time decisions involving your real, hard-earned money.
▶ To simplify the complex, upgrade the obsolete, and throw open the closed doors of a long-secretive industry.
Give us a try and experience something refreshingly different!