Western Global
Fuel Distribution 2 61e45df8944ae

4 ways to make more money in fuel distribution

March 3, 2022
Switching to modern tanks can set up distributors for success, and improve customer satisfaction

In the competitive industry of fuel marketing and distribution, where profit margins can be slim, customer retention and satisfaction can go a long way toward sustaining a successful and thriving business. This is why more distributors are ditching their old tanks in favor of modern fuel storage solutions—an investment that, for many, has proven to pay dividends over time.

While the initial cost of a new tank tends to increase in relation to its quality and features, many customers will gladly pay a small premium for the benefits associated with modern tanks. Here are a few ways switching tanks can benefit customers, as well as the bottom line.  

Cut lead times

First impressions are key. When a new customer needs a tank, they generally need it quickly, as fuel seems to be the last thing they plan for in most cases. By partnering with a manufacturer that stocks and quickly ships tanks to you, lead times can be reduced and your customers’ experience will be a positive one. Some manufacturers keep ready-to-use tanks and accessories in stock and available for speedy delivery in three or four business days or less, cutting delivery for the customer as well as setup and labor costs for the fuel distributor. This also means fewer tanks needing to be kept on hand, which means less capital tied up in customer-ready tanks.

Stay on top of deliveries

Once a customer’s tank is set up, their primary interaction with fuel distributors centers on deliveries. Fuel-tracking technology can simplify deliveries for both parties. New tanks can be configured with a range of dispensing and fuel management systems to allow users to accurately track consumption and monitor levels. For most customers, running out of fuel brings their business to a grinding halt, and effective monitoring keeps them ahead of the curve for scheduling deliveries.

In addition to benefiting customers, fuel-monitoring systems can allow distributors to monitor fuel levels from afar. With this arrangement, delivery logistics—as well as customer service—can be improved by contacting customers when a truck will be nearby and filling their tank then as opposed to waiting for them to call and making a separate trip.

Reduce maintenance

Customer satisfaction and ROI both hinge on the tank’s service life and durability. Most traditional round tanks have pumps, hoses, and meters mounted to the exterior, exposing them to rain, ice, and thieves. In contrast, cube tanks offer secure, weatherproof cabinets to extend the service life of components, as well as deter theft.

Some manufacturers also feature double-wall 110% containment, making them easier and less expensive to clean and maintain compared to traditional round tanks and containment basins. Plus, since the tanks are designed with a removable inner tank, spills that would otherwise be inaccessible are no problem.  

Promote a positive brand image

Large steel tanks are not designed for aesthetics, but providing customers with a clean, dependable tank reflects positively on your business. While most tanks look nice when they’re new, there’s value in setting customers up with one that will continue to appear clean and well maintained for years.

Offering tanks with a high-quality coating is a great way to prevent them from becoming eyesores. Some manufacturers take it a step further with their double-walled tanks by applying the same durable coating to the outside of the inner tank. This way, if the outer wall becomes damaged, the inner tank will stay protected. Additionally, since branding tanks with a company name and logo is a cost-effective way to promote business, it’s even more important to keep it clean and well maintained for a long time.

Providing tanks that promote a positive brand image, improve customer satisfaction, and provide excellent return on investment is an easy way to differentiate a business from others and set it up for years of success.  

Ken Steury leads Western Global’s regional sales team. He has over 20 years of industry experience and has been working closely with Western Global customers for nearly five years.
About the Author

Ken Steury | Director of sales

Ken Steury leads Western Global’s regional sales team. He has more than 20 years of industry experience and has been working closely with Western Global customers for nearly five years.