Main Line: (800) 299-3991 | Fax: (800) 777-9263 PADD MAP Customer Login HOME ABOUT PRODUCTS & SERVICES BRANDING NEWS EVENTS FUEL SOURCE CONTACT The Benefits Of A Fuel Contract One major question that all fuel retailers must ask themselves is, “Do I sign a contract or take my chances on the spot market?” Before you decide one way or the other, you should understand the benefits of a fuel contract and what it could mean for your retail business. What is a fuel contract? A fuel contract is an agreement between a wholesale provider and a retailer. The retailer agrees to only buy gas from the wholesaler for a given amount of time. The wholesaler agrees to provide the product to the retailer at a given volume and price. What are the benefits of signing a fuel contract? This agreement is good for companies that need a consistent supply of product. Major retailers along major vehicle routes always need a supply of fuel to keep customers happy. Signing a contract ensures a steady supply at a predictable price. This agreement is great for keeping customers happy while making a profit at the same time. A contract means less time spent shopping for fuel prices. Independent retailers often spend a lot of time calling around to various wholesalers to find the lowest price. These phone calls take up time that could be better spent on other aspects of the business. Having a contract takes all the price shopping out of the equation. This agreement also guarantees that a retailer gets fuel when supplies are running low. On occasion, refineries and pipelines do go down. That can mean a decrease in available supply. When supply gets scarce, the retailers without a contract scramble to get even a small shipment at an exorbitant price. With a fuel contract, low supply is not a problem. Contract customers are given priority when it comes time to distribute the available supply of fuel. A fuel contract helps retailers avoid the perils of a price inversion. Price inversions are rare, but can be very costly to retailers. These inversions happen when unbranded supplies go so low that the fuel prices skyrocket. The scarcity of the product drives the price above that of branded or contracted fuels. Having a contract means that a retailer has a steady supply and can still turn a profit during a price inversion. If you are interested in talking to someone about a fuel contract, give us a call at Kendrick Oil. You can reach us at (806) 250-3991. We are happy to answer any questions you might have. You can also send us an email through our Contact Us page. For more information, read About Us. CONTACT US KENDRICK OIL CO 801 S MAIN ST, FRIONA, TX 79035 (800) 299-3991 (800) 777-9263 SITEMAP Home About Staff What We Offer Branding Terminals Classes PADD Maps News Events Fuel Source Contact OUR PRODUCTS Clear Diesel Bio-Diesel Unleaded Gasoline Premium Gasoline Kerosene Dyed Diesel Winterized Diesel Mid-Grade Gasoline Propane …and more! CUSTOMER LOGIN Find Us: Licensed to serve Texas, New Mexico, Oklahoma, Kansas, Colorado and Louisiana. 2017 © Kendrick Oil Company. | UCI Digital website