A Strong Distributor Partnership can be a Fuel Retailer’s Best Friend
By Ed Kammerer
We’re going to do something a bit different in this issue’s “Forecourt Insight” column, so I hope you have your bags packed. Why? Because we’re going to take a little summer vacation to Caronport, Saskatchewan, a hamlet of approximately 1,000 residents located on the Trans-Canada Highway about 670 kilometers (415 miles) west of our Convenience & Carwash Canada editorial office in Winnipeg and roughly 20 kilometers (12 miles) away from Moose Jaw, Saskatchewan.
We’re going to Caronport because it is typical of many small Canadian towns that are located away from a major metropolitan area, a tightly knit community with a population – despite its relatively diminutive size – that still requires many of the services that are found in larger municipalities, including a retail-fueling business. So, let’s assume that we’re going to open a new petrol station in Caronport. As the prospective owner, you’ve done your due diligence and are aware of all of the fuel-handling, storage and dispensing equipment and systems that will need to be acquired and installed in order to make your new business operational.
Through your due diligence, you’ve also decided that you would like to outfit your fueling infrastructure with new equipment and systems. Some facilities are headquartered too far away that would make delivery of the equipment and systems you need in a timely manner a little problematic and cost-ineffective – to say nothing of the logistical challenges that would have to be conquered should any components in your operation need maintenance or have to be replaced.
But before you get discouraged looking for a manufacturer that may be situated a little closer to Caronport, we have a solution to this conundrum…
A Friend Indeed
This solution is a distributor defined as “a supply-chain intermediary that connects manufacturers with retailers or wholesalers” – who specifically buys products from manufacturers, stores them and then sells them to retailers when needed, in the process streamlining and optimizing the distribution process.
There’s nothing imaginary about the fact that it is incredibly important for the owners and operators of any retail-fueling business – no matter the location or site demographics – to identify and build a good, trusting relationship with a distributor partner. A good distributor not only has a ready supply of equipment on hand should the operator need it, but can offer a number of other benefits to the business, the most basic of which is tribal knowledge of the area that can be shared as the business is being planned.
Knowledgeable distributors can provide advantages for equipment manufacturers, as well, with their experience within the territory enabling them to educate the manufacturer on what types of equipment and systems other retailers are using and when it is being used. In the end, the retail-fueling industry is only as successful as its distribution channels. Sure, the ultimate job of the retailer is to provide fuel to their network of customers, but don’t forget about the guys and gals in the middle who handle logistics, help schedule service visits and make sure that all the pieces and parts that go into building a successful retail-fueling business are always in place.
Finding The Best Partner
But how do you know you’re partnering with the right distributor? These six recommendations can help you not only find the right one, but then help you use their expertise to optimize the performance of your retail-fueling business.
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Perform Due Diligence
Research the market area in which you will be operating. Talk to the local Chamber of Commerce, for example, to see what they can tell you about the distributors in the area, including any significant successes they’ve had. The objective is to use the resources at your disposal to identify a distributor with a strong reputation who can be your ally as you work through the site selection, permitting, equipment selection, installation process and, eventually, service.
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Lean On Local Knowledge
Distributors who know the area can provide important information regarding population demographics, travel patterns and other important variables that can be determining factors in the ultimate success of your business. The distributor can also provide background on any competitors in the area and may also be able provide some insight on what has been successful or unsuccessful for them.
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Take Advantage Of Product Expertise
The best distributors are the ones who know the systems that they sell and represent inside and out. This knowledge can be indispensable when the operator is trying to decide, for instance, what types of fueling nozzles to use or which secondary-containment system is the most waterproof.
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Manufacturer Alignment
Make sure your distributor is partnered with the most innovative manufacturers in the industry. Be sure the distributor is up to date on all new products the manufacturer has to offer and has attended manufacturer-sponsored activities such as factory visits, seminars and training classes. And, finally, work with the distributor to ensure that a sufficient amount of stock or inventory of the essential fueling components you may need quickly is kept onsite.
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Look Down The Road
A distributor who is familiar with the latest changes, upgrades or enhancements in equipment technology can also help keep the retail-fueling business operating on the cutting edge. This can include next-generation sump technologies that improve uptime and reduce maintenance costs or fueling nozzles that have been designed to deliver a cleaner fueling experience for drivers.
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Plan For An Emergency
There is always a chance, especially as systems age, that an equipment breakdown will occur or some form of preventive maintenance will be required. To ensure that profit-absorbing downtime and repair or replacement costs are kept to the bare minimum, partner with a distributor who not only has a vast knowledge of the complete fueling system, but also employs a staff of technicians who are able to respond quickly and have the expertise to quickly and reliably expedite any equipment emergency.
Conclusion
Building a successful retail-fueling business can be a daunting task – especially if you try to go it alone. That’s why distributors – described by some as “the lifeblood of the retail-fueling industry” – can be your best friend. They not only serve as a conduit between you and the manufacturer, but can be an advocate for your operation in many different and significant ways, from sharing their deep well of local knowledge regarding what does and doesn’t work to filling you in on the latest fueling-system innovations.
Remember, site downtime or “bag on nozzle” syndrome can send the customer base looking for alternatives. However, during the life cycle of any retail-fueling outlet the equipment and systems will wear and age due to use and abuse. That’s what makes having local parts support so important as it helps minimize downtime and will only enhance the customer experience. In the end, identifying and partnering with a good, reliable distributor can be as critical as choosing the best retail-fueling equipment and systems, with the end result being a stronger business with a healthier bottom line.
Ed Kammerer is the senior director, global product management for OPW, based in Cincinnati, OH, USA. He can be reached at ed.kammerer@opwglobal.com. For more information on OPW go to opwglobal.com.
