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Tips for Buying the Right Amount of Fuel for Your Gas Station

Tips for Buying the Right Amount of Fuel for Your Gas Station

Many drivers have no idea how much effort goes into owning and operating a gas station. They pull their cars up to the pump, fill their tanks, pay, and go on their way. It’s easy for people to take it for granted that gas will always be plentiful when they need it, particularly if they never experience the inner workings of managing a gas station.

As a gas station owner, you have a lot to do to keep your business running while meeting the needs of every customer who comes to one of your pumps for refueling. Making sure you have enough fuel on hand to meet your customers’ needs is only the beginning. You’ll need some tips for buying the right amount of fuel for your gas station to maximize your profits and keep operations running smoothly.

How to Buy the Right Amount of Fuel for Your Gas Station

Buying the right amount of fuel for your gas station is an art and a science. You need to understand several factors about your gas station to avoid having a surplus or shortage. The good news is that, as you get increasingly familiar with your customers’ needs, you’ll have a better idea of what works for you to keep your profits high and your clientele happy. Use the following four tips to help you purchase the correct amount of fuel for your gas station.

How to Buy the Right Amount of Fuel for Your Gas Station

1. Know Your Demand and Costs

Supply and demand are the foundations of market values and business decisions across all industries. A baker makes enough bread to sell in a projected period. Likewise, you should keep enough gas on hand to sell in a given span while being able to pay your expenses. You can get all the fuel you can store, but you must sell it to earn a profit.

Here are some factors to keep in mind to help you better understand your demand and costs.

  • Your gas station’s size: If you run a small gas station, you can get away with buying smaller amounts of fuel. Larger convenience stops with several pumps may need more substantial fuel orders to meet the level of demand. But the amount of fuel you get should also match the number of people using your pumps. Having 15 or more pumps primed and ready is pointless if you lack the traffic to use up all the fuel.
  • Your gas station’s location: Location could play a pivotal role in how much fuel you need to order. A gas station in a rural area may get little traffic throughout the day, so a smaller amount of fuel may be enough to turn a profit. Gas stations in busy urban areas or rest stops along the highway may see hundreds or even thousands of vehicles per day, in which case much higher volumes of fuel would be necessary to meet demand.
  • Fuel service charges: Fuel service charges can influence your decision of how much gas to buy at a time. Many gas station fuel suppliers charge for the delivery of a minimum amount. Getting a quantity under that threshold may feel like a waste of money due to this service charge, leading you to buy more than you need. Do the math, because it may be better to purchase less if it means you can sell it faster and pay off your bill.
  • The cost of the fuel: You can confidently purchase gas under the minimum service charge if the price of the fuel itself is fair. Even with the service charge, you could spend less money while meeting your gas station’s demand. Or, if you run a larger gas station, you may see lower prices as an opportunity to buy more gas, boosting your profits in the event of a fuel price increase. You’ll still enjoy the benefits of lower costs from the previous delivery.

2. Understand When You Need Your Next Fuel Delivery

Every gas station owner wants to avoid the worst-case scenario — running out of fuel. This event could be detrimental to your business for several reasons, including the following:

  • Your customers will lose confidence in your ability to meet your needs, causing them to choose another gas station in the future.
  • Your transactions will come to a halt, reducing your profits.
  • You will feel more anxiety or stress as you scramble to schedule a quick delivery.
  • You’ll experience a customer service challenge as you try to appease patrons who are angry about the situation.

These issues are not fun to think about, but they are crucial in helping you understand the importance of knowing when to schedule your fuel deliveries.

Timing will affect how much fuel you purchase for each delivery. If you want to go long periods without a delivery, you may wish to buy more fuel at a time. Or, your gas station may run on smaller orders to fit your budget, causing you to need more frequent deliveries. Know what works for your gas station so you can always have fuel on hand and avoid running out and waiting for the next available delivery.

3. Create an Accurate Fuel Delivery Schedule

Tying into the previous point, fuel deliveries are crucial in meeting your gas station’s demand with the correct supply. Keeping a steady flow of fuel at your gas station will keep your customers happy and ensure you enjoy smoother day-to-day operations. Avoid any fuel shortage surprises and stay in control of the amount of fuel you have on hand with regular, logical deliveries.

Create an Accurate Fuel Delivery Schedule

One of the best ways to achieve this consistency is to create an accurate fuel delivery schedule. If you’re new to running a gas station, take some time to work out the kinks. Soon, you will have a better understanding of how your gas station sells fuel so you can schedule your deliveries at the perfect moment. Your deliveries should meet the following two needs:

  • The amount delivered should be the same each time, excluding special events or other factors that may require you to buy more than usual.
  • Fuel deliveries should have enough space between them to allow you to sell your product and pay your bills. When the next delivery comes, it should be at a time that makes sense within your budget.

Accurate fuel deliveries will help you tighten your budget so you can maximize your profits. Then, the only thing left for you to focus on is the next point — getting your fuel from a reputable supplier.

4. Get Your Fuel From a Reputable Supplier

This tip is like the glue that holds the entire wholesale fuel purchasing process together. You can understand your supply, demand, and delivery schedule down to the tiniest details, but an irresponsible fuel supplier can disrupt the entire process. Here are some characteristics you should look for in your gas station fuel supplier.

  • Reputable: Choose a supplier that has built an outstanding reputation in the community. You’ll find some suppliers may offer lower prices, but fellow gas station managers in your area may have had poor experiences with them. Choose a supplier whose stellar trustworthiness precedes it.
  • Consistent: You need consistency in your fuel supplier. Choose one that delivers fuel on time to help you better project your needs to meet your demand.
  • Flexible: Your fuel supplier should work with you to meet your needs instead of the other way around. As you research fuel suppliers for gas stations, keep a watch for the ones that care about meeting your unique needs. Supplying fuel differs from one gas station to the next, and your fuel supplier should work based on this knowledge.
  • Helpful: If you need some help with the process of getting fuel to your gas station, choose a knowledgeable fuel supplier. They may have been delivering wholesale fuel for a long time, so they could have tips and recommendations to guide you along. Find a fuel supplier that will make the process easier for you.

Benefits of Buying Wholesale Fuel for Gas Stations

Check out the following three benefits of buying wholesale fuel for your gas station.

Benefits of Buying Wholesale Fuel for Gas Stations

1. Buying Wholesale Gasoline Is More Cost-Effective Than Retail Fuel

The cost of wholesale fuel vs. retail fuel is the most notable difference between the two — and wholesale will win every time. Buying wholesale fuel for your gas station is the best option for meeting demand and keeping your costs down. Buying some products in bulk will save you money, and the same is true of wholesale gasoline.

The price of retail gasoline includes applicable taxes and markups from the seller to help them turn a profit. These extra costs are absent from the purchase of wholesale fuel, saving you money. You’ll be able to make more room in your budget and experience higher profits as a result.

2. Buying Wholesale Gasoline Can Help Streamline Your Business

When running a business, efficiency is crucial. Downtime can adversely affect your profits and reputation in the community. You should avoid these unfortunate scenarios at all costs, and buying wholesale gasoline can help you achieve that.

When you buy fuel in bulk, your supplier will make consistent deliveries, keeping your storage tanks full to meet your customers’ fuel demands. You’ll enjoy streamlined operations as you keep your pumps open for a fraction of the cost of buying fuel at the regular retail price. And with the right amounts of fuel, you can be confident that you’ll have enough to last until your next delivery.

3. You Can Count on Your Wholesale Fuel Supplier for Accurate, Timely Service

Fuel pricing is volatile. World markets influence price fluctuations, and these changes can make budgeting challenging. When you sign a contract with a wholesale fuel supplier, you can lock in your prices, helping you pay the same price for your deliveries every month.

Locking in your prices is an excellent option if you sign your contract when the market prices are low. But be careful about locking in your prices when the market is high, as you could end up stuck paying more throughout the year. Ask your fuel supplier to explain their contract with you, so you know what you’re signing up for.

Choosing a Reliable Wholesale Fuel Supplier

Working with the best fuel supplier is the cornerstone of running a successful operation. Here are some tips to help you choose a reliable wholesale fuel supplier for your gas station.

  1. Know your needs before starting your search: Every gas station’s requirements will vary based on several factors. Take some time to figure out your unique demands. You can even write them down to help you visualize and remember them. Know what you need before starting your search to narrow your search to suppliers that can meet your gas station’s demands. And when you start reaching out to suppliers, you’ll know what to ask for right away.
  2. Find each supplier’s delivery areas: This tip may seem self-explanatory, but you should keep it at the forefront of your mind as you begin your search. Make the supplier’s service area one of the first things you learn as you review their website or call them for more information. You’ll save yourself the time and frustration that comes with finding a fuel supplier you feel good about, only to discover they don’t offer service in your area.
  3. Ask around or read reviews about the fuel supplier: Public opinion can tell you a lot about any wholesale fuel supplier you’re considering. If you see plenty of five-star reviews online for a specific supplier, you can feel more confident getting involved with them. Ask around for some word-of-mouth opinions about fuel suppliers to receive unfiltered thoughts about their service.
  4. Give the supplier a call: It’s always a good idea to call the supplier for direct information about their service and options. See if they have friendly customer service representatives who are willing to provide helpful information. First impressions matter, so trust your instincts as you navigate these initial, crucial moments with a fuel supplier. Prepare for the phone call by writing a list of questions to ask so you can maximize everyone’s time.

Contact Shipley Energy to Learn More About Our Commercial Wholesale Fuel Services

If you’re looking for a fuel supplier for gas stations, Shipley Energy is the company for you. We can provide you with various wholesale fuels, including gasoline and diesel. We are an experienced commercial energy service provider, and we can help streamline your gas station to make it the most effective and profitable it can be.

Contact us online today for more information about we can help meet your wholesale fuel needs. Or you can call us at 800-839-1849 to talk to one of our representatives. We look forward to meeting you and serving you!

Contact Shipley Energy to Learn More About Our Commercial Wholesale Fuel Services