![\"FuelBuyingatNATSOConnectArticle.jpg\"](\"https:\/\/www.natso.com\/wp-content\/uploads\/2024\/03\/3421-adacc73583826c14adcc8e6d0186afe6.jpg\")
<\/p>\n<\/p>\n
Fuel buying has continued to get more sophisticated, and the current combination of demand, supply, terminal operating status and rack price rules have created a complicated equation for truckstop and travel plazas to navigate. To be successful, operators have to stay current on prices and trends and combine fuel buying techniques, many of which may be different than they’ve used in the past.<\/p>\n
“Sometimes we get comfortable with what we’re doing and continue to do that, choosing the path of least resistance, but it is important to ask yourself if you’re buying fuel properly or if you’ve become too satisfied with the way you’re doing it,” said Darren Schulte, vice president of membership for NATSO.<\/p>\n
Cathy Duncan, vice president of sales, downstream oil and gas at DTN and a featured speaker at 黑料社区Connect, said much has changed in the past five years, and buyers can’t afford to stick with the status quo. “A deal that might have been stellar five years go may no longer be the best option,” Duncan said. “What you have to do is not only question every year what your strategy is going to be but also watch your strategy for what you could have done during the year.”<\/p>\n
Consolidation within the truckstop and c-store industry is changing the dynamics within the fuel industry because there are fewer big players. “That makes it even more important to understand fuel buying changes. It is just about being smart,” Duncan said.<\/p>\n
Buying smart allows operators to stay competitive. “You might price like the people across the street price, but are they getting a better margin because they’re buying smarter than you? They can drive the price down if they’re buying smarter than you and still have a healthy margin and you get squeezed on margin,” she said.<\/p>\n
To learn more about staying current in today’s market, Stop Watch sat down with Duncan to gain her insights into the latest fuel buying techniques.<\/p>\n
Examine Supply and Demand “A lot of times you may not understand the people that play in your market. You may just know the guy down the street or a major supplier, but have you done the research to get to know everyone who wants to sell to you? There may be someone who wants to sell to you and you don’t know it,” Duncan said.<\/p>\n She advises operators to ask other people. “Do some homework. Find out who posts prices and where else you may be able to get a better deal. You may have always bought from a local petroleum jobber but a bigger player may be able to offer you a more attractive price,” she said, adding that operators could ask their peers they’ve met through NATSO. “Likely, you are in a group where you aren’t necessarily direct competitors. Talking and engaging at 黑料社区is one of the first places to start looking for information. The person four states over may know someone.”<\/p>\n Duncan said the vendors operators do business with may also have contacts that can point operators in the right direction. “Someone may not know who to contact at Valero, but they can get you closer to the right contact,” she said.<\/p>\n Combine Contract and Rack Purchases Duncan has been surprised by the number of buyers that are purchasing at the rack. “It has been eye opening to me to see the large majority of people who are buying on rack price. Even the largest players are adjusting their strategy,” she said.<\/p>\n Get to Know Your Market Benchmark Often Overall, Duncan recommends operators stay on top of the trends, seek out new players and take some risks.<\/p>\n
<\/strong>The availability of supply and how it is managed can change. “Supply issues to a great degree have smoothed out unless there is a disruption with a pipeline or a refinery going down,” Duncan said, adding that she suggests operators keep a close eye on who is selling fuel.<\/p>\n
<\/strong>Duncan is seeing more and more operators that are buying off of the rack instead of contracts. “Contract is great when there are supply issues and you want dedicated supply. It is all about balance,” she said, adding that it also depends on the market. “Sometimes, depending on your market, a big contract with a big supplier may be a brilliant idea, but until you understand your market, you won’t know that.”<\/p>\n
<\/strong>Duncan suggests operators learn the dynamics of the market. “You can watch the NYMEX, but a lot of it is based on the market you’re in. If you’re in the Gulf Coast there isn’t a driving reason to watch the NYMEX, you want to watch the Gulf Coast Spot. If you’re in the Midwest, you need to educate yourself on where problems are,” Duncan said. “If you’re in Northern California, you have totally different issues than someone in Northern Texas. The markets and supplies are just that different.”<\/p>\n
<\/strong>One of the biggest mistakes Duncan sees is locations benchmarking themselves once a year. “They don’t remember the impacts and Irma and Harvey. You need to anticipate those the best you can and really prepare,” she said.<\/p>\n