There is nothing more important than fuel for business ventures involved in transportation of goods. It is often the case that a business has a very consumption rate of fuel; so much so that it becomes imperative to buy in bulk. Well, there are few tips to cap your expenditure while purchasing fuel for your business. Always keep in mind that gas cards for business are a very handy option to help you save more.
Let us have look at some of the other ways to reduce the expenditure when the rate of consumption is higher than average. Read on to know more about saving on company fuel costs.
Negotiating A Fuel Discount
You can negotiate fuel discounts while building a network of best price stops and gas stations. This is especially true for businesses and individuals where the consumption is higher than average. The best way to gain this leverage according to our experts is to purchase around 80-90% of the entire volume of the fuel from a primary provider. This will allow for negotiation with respect to the price. The rest of the 10% can be filled up on depending on the geographical location of the movement. You can program your fuel cards to work selectively at the fuel stops that are on your discount network.
How About A Fuel Buying Group?
You might just be the little guy just starting out in your business and this essentially translates into non-negotiation of discounts. What you can do is join forces and team up with other smaller businesses to form an aggressively operated fuel buying group. There are groups like the national Association of Small Trucking Companies that you can go for.
The Fuel Card Program Is Important
Fuel is more commonly needed while travelling, so it is vital that you look into a card program which will help you to manage your expenditure better. This is due to the fact that these cards offer discount pricing, tracking and control of fuel prices as well as acts perfectly well irrespective of the size of the business or the fleet.
Buying Only The Required Amount
Stale fuel is a breeding ground for algae and often water accumulation in stale fuel can lead to the decrease in the energy content. So if you are in the habit of buying more than the required amount, get rid of it. It is not a great idea to carry the extra weight around which effectively decreases the load capacity for your vehicle.
Use The Technology Available
The market conditions when it comes to fuel availability and pricing fluctuates many times within a month, so it is essential to leverage software and technological tools to get around this specific problem. When prices are swinging it is essential to make bulk purchases on the lower side concerning the price. Use the volatility to your competitive advantage and beat your competition.
Fuel Quality Is Important
Another important consideration is the quality of the fuel since poor quality fuel translates into low mileage which means you need to purchase more than what you had planned. Locate the best fuel stops and stores to save more on the long run.
Buy In Bulk
You can buy fuel in bulk which will help you save more. How to store the extra fuel at your premises? All you need to do is install a storage tank for your company fuel needs!
Business Fuel Buying Conclusion
That concludes our list of tips that you need to use to reduce the expenditure while purchasing fuel. How many fuel storage units and fuel deliveries will your company go for?
