As a convenience store owner, you are probably always looking for the best deals on gas and diesel fuel. This can lead to you shopping around and working with different companies, and you may not be interested in signing a contract with one fuel supplier. You could be afraid that you'll miss out on the best deals by doing so, but signing a contract for wholesale fuel can actually be a smart decision. These are a few reasons why.
Get Priority Pricing
If you shop around and buy from a different supplier every time that you need fuel, you probably pay the same wholesale prices that everyone else does. If you want to score the lowest prices, you are probably going to need to sign a contract with a supplier. Suppliers often offer special deals for those who sign contracts, such as a percentage off of the current fuel price. Plus, some contracts even include fixed pricing; if you sign a contract at a time when fuel is very affordable, this can be a very smart decision and can ensure that you're paying the lowest prices out there while everyone else is paying full price.
Ensure You Always Have Fuel
As a convenience store owner, the last thing that you probably want is to run out of fuel. Running out of fuel at the wrong time can be crippling for your business, and if you run out of fuel too often, your convenience store might become known as an unreliable source of fuel. Then, your loyal customers could start going elsewhere when they need a fill-up because they might fear that you don't have the fuel that they need.
If you sign a contract with a fuel supplier, you can get a routine schedule to have fuel delivered regularly. Plus, many fuel suppliers give priority to the customers with whom they have signed a contract, so you may be able to enjoy faster emergency deliveries.
You may have to sink a large amount of your capital into the fuel that you purchase every time that you need it. Some contracts include credit agreements that will allow you to get your fuel now and pay for it later, which can help free up cash for the other things that your convenience store needs.
As you can see, it's not a bad thing to sign a contract for wholesale fuel. In fact, it can be quite beneficial. Just make sure that you shop around for a fuel supplier that you can trust to provide you with reasonable prices and good customer service, and you're sure to be glad that you have a business partner that will help keep your store supplied with the fuel that you need.