April 30, 2021

Gas Station Management: How Fuel Retailers Work

If you have ever wondered if there’s a difference between the gas you get at branded stations, such as national chains, versus unbranded ones, like your local “mom and pop” operation, you’re not alone. Do you get better gas at branded stations? Do cheaper gas prices at privately owned stations mean that the quality of the fuel is somehow affected?

The short answer? Yes, there’s a distinct difference between branded and unbranded gas stations. Read on to learn more about these differences and how fuel retail works.

Gas Supply Chain

Gas doesn’t become a specific brand until it’s delivered to the station. Before that, it’s a generic fuel stored in common terminals. When fuel leaves these terminals, it becomes a specific fuel.

Branded Gas Stations

Each gas brand, such as Phillips 66, BP, and Exxon, has a unique blend of additives that is designed to help keep a vehicle’s engine running clean. Contrary to what many consumers may think, the convenience store that sells a specific fuel brand is typically independently owned and operated. A branded contract with a major supplier instantly gives the owner a familiar brand for their most lucrative product: gasoline.

A branded gas station can also determine where many customers choose to stop. Although price remains the number-one factor that influences gas purchases, one in 10 motorists consider fuel brand as the top reason for their purchasing decision.

Unbranded Gas Stations

If a retailer feels that their store name is strong enough to gain a gas consumer’s trust, they may opt to remain unbranded. While unbranded fuel doesn’t have a unique additive package, it does have a general package that meets government fuel regulations.

Unbranded gas stations may have lower fuel prices because the added benefits of branded fuel are not included. These benefits may include the additives, marketing support, and market insight. Unbranded retailers can find the best “deal” for fuel product on the open market, regardless of brand.

The Bottom Line

Branded gas stations enjoy an easily recognizable name, which can help them earn a customer’s trust, both locally and nationally. While price, accessibility, and location are critical to your gas station’s success, branded fuel can help “level up” your business and increase profits. Partnering with a fuel retailer can help you run your convenience store, manage food, negotiate fuel supply and delivery, provide site signage, conduct marketing, and more.

Contact Us

Konnect General Services  offers flexible and fair wholesale fuel supply contracts with recognized fuel brands like Phillips 66 and Conoco, delivered right to your station. Contact our team to see if you qualify for 100% funding to brand your store and make improvements.