A fuel contract can be beneficial in many ways, but it can also be a disaster if you’re not careful. Most vendors will start off by giving you the best stories that they have heard or seen. I will start off with the worst. Here is an example of what became a disaster.
I came across a business person that was new to the fuel industry and had purchased several stations. After talking to this owner it appeared that the vendor he signed the contract with took advantage of the business owner’s lack of knowledge. The owner was paying high wholesale price without the ability to negotiate them. On top of credit card fees, there were additional fees just for using their credit card machine. The business is on the brink of collapsing. The contract turned into a 12 year grave.
Here were the mistakes:
- There was no price negotiation, just a guaranteed fuel contract.
- The business owner agreed to use the vendor’s credit card service which had large credit card fees.
- The business owner was paying 10-15 cents higher than the vendors stores were paying. This meant that between the high credit card fees and the 10-15 cents markup on the fuel, they were 20-25 cents higher than any other stations around.
- The supplier did not have the best interests of the business owner in mind. They only wanted to profit at the expense of others. Thus the business owner got taken advantage of.
Enough said about that.
The “Pros” of signing a fuel contract with Desert Fuels.
…we truly care about what is BEST for our customers, we are not here to make a quick buck and run away. We are in it for the longrun.What really sets Desert Fuels apart from other suppliers when it comes to fuel contracts, is that we truly care about what is BEST for our customers, we are not here to make a quick buck and run away. We see our customers as a close partnership in business. We don’t disappear after a contract is signed. Instead, it is the beginning of our relationship. Many times that means that we have to educate our customers in the fuel industry. Some customers desire to be brand their stations, but if the best decision for them is to be unbranded, we will make sure to educate them as to why. There are other reasons why Desert Fuels is a great company to partner with for a fuel contract.
- Let’s start off with the exceptional customer service you will receive. You will be assigned your own customer service manager whom you can contact 24/7.
- You are guaranteed your product and price no matter what the situation is. No stress or worry wondering if you will get your load and if the price is going to be higher because the market is going up. Tank monitoring is an additional service that we offer. You will receive daily updates of what the fuel market is doing.
- If you use our credit card service you will receive the Lowest Guaranteed Credit Card Processing Rates in the Country.
- One of the most compelling reasons to choose Desert Fuels if you are looking into a fuel contract, is that we offer creative fuel contract pricing. Normally fuel contracts are based off of OPIS, cost, or some other potentially ambiguous benchmark. But with Desert Fuels, we can cater the contract directly to your needs. For example: If there is a gas-station customer that needs to be price competitive with a another gas station down the road from their station, then we can build a provision into the contract that makes sure that they will never pay more for fuel than 6 cents less than the posted price of the competitive gas-station.
Frequently Asked Questions:
Q: What is a fuel contract?
A: It is an agreement between the vendor and the customer for the purchase of fuel and any other services that are agreed upon.
Q: What responsibility comes from the Vendor?
A: The Vendor will guarantee gallons negotiated to the customer and the price per gallon that was negotiated. The vendor shall also guarantee the delivery and quality of the fuel.
Q: What responsibility comes from the Customer?
A: The customer agrees to purchase all fuel gallons agreed upon to the vendor. The customer also agrees to the terms and condition of the contract such as: payment terms, monthly gallon guarantee if applicable and credit card fees if applicable.
Q: Can we use your credit card service?
A: Yes. We offer our credit card service at no additional fee. You will only pay credit card fees.
Q: Do you offer any fuel branding contracts?
A: Yes. We offer our Duke City Fueling Brand. We also brand Alon, Conoco Philips and Phillips 66.
Q: How is a contract determined?
A: We tailor a contract to the customer needs. Everything is taken into consideration: monthly gallons, credit card service, branding options. Every contact is different.
Q: What is the term of the contract?
A: Every contract is different. Anywhere from 5-12 years. It all depends on your needs.