As a fuel station business owner, you have the opportunity to decide whether you want to provide a branded or unbranded fuel product for your customers. There are many aspects to consider in making this decision--each with its advantages and disadvantages. Peninsula Petroleum can help you review all your options to decide what’s best for your business.
Many consumers prefer to purchase a branded fuel because they feel the quality is higher. Branded fuels include a cleaning additive in their TOP TIERTM fuels to help engines run better. Those fuels are on average 5 to 15 cents more expensive than unbranded fuels, and you will have a contract to purchase fuel from only that brand’s local distributor.
Your customers already know and love many of the brands on the market such as Chevron, Texaco, Shell, and others. They’ve already built brand loyalty and are likely to drive out of their way to purchase fuel from that brand. You receive the benefit of already having a level of trust with these customers. Some of the extra cost of branded fuel goes to pay for the brand licensing and national marketing you receive.
With this option, you make all the decisions about your business including the name, your logo, your operating practices, and your unique brand colors.
You don’t have a contract with any single distributor, so every time your order you can evaluate the choices and select the lowest cost option for your business. This will help you to maximize your profits. However, without a contract you may also be at the back of the line in a fuel shortage.
Because you have the opportunity to locate fuel that costs you less than branded alternatives, you have more flexibility to offer it at a lower price to customers. It won’t have those cleaning additives that the branded fuels include, but many consumers are looking for the lowest price to fill their tanks.
It can be very challenging to weigh all the options and make the best decision for your business. Our experts at Peninsula Petroleum are here to help you get the information you need, answer your questions, and guide you to choosing the option that’s best for you. Contact us today to get started!