Gas Station Fuel Supply Agreement

Choosing the brand that will show your station is an important part of your business. If you get into business with the way of thinking that all brands are the same, please do some research on your site, which puts each brand on the table. If you need help, please start with our article on how to choose the right brand for your gas station. You may be limited to the brand you can have on your website, which is determined by the location of your shop and the store`s sales history. If there is a particular brand you want, but there is already the same brand terminal within 2 miles of your location, chances are you don`t get permission to get that specific brand for your shop. When deliveries are scarce, Unbranded dealers may have a harder time obtaining products, since oil companies first serve their stores, brand contacts and other contracts. If supply is limited, this means that the remaining unbranded distributors must compete for what is left – and wholesale prices are often much higher. A small percentage of gas stations are owned by one of the large integrated oil companies. The store most likely signed a contract to sell a particular brand of fuel and, as part of this agreement, the store also receives marketing support and signage to promote the fuel brand. This contractual relationship for fuel is similar to that of the store, where beverage manufacturers often help supply distributors of branded fountains that emit a branded soft drink. Both the oil group and the beverage group help the retailer sell products, but that does not mean they own the store.

Most consumers are familiar with the major fuel brands sold in convenience stores. In many cases, these brands have been an important part of the U.S. economy for more than a century. In addition, about half of convenience stores sell a fuel brand to one of the 15 major refineries/suppliers, and consumers may consider a company selling a certain brand of fuel to be owned by that company, which is not often the case. Convenience stores and gas stations, which depend on fuel sales as equivalent to their business plan, can grow smart gallons by avoiding the delivery offers offered by the PPD. It requires discipline, but the best approach is to slow down the process and focus on a consistent way to create long-term business value. More than 58 per cent of stores that sell fuel are unmarked, but a branded fuel supply contract gives consumers confidence in a name they know and trust. Know the oil company`s brand requirements, such as credit card networks, brand signage, service standards and loyalty programs. Here`s another great NACS article that describes the pros and cons of the brand.