Branded or Unbranded Gasoline – Which Way Should You Go?
Branded or unbranded – choosing between the two isn’t just a dilemma limited to food and clothes. This also applies to those who are interested in getting a gas station franchise. See, aside from having enough money, the technical know-how, and the management skills to run this gas station business, you also have to determine what type of fuel you’ll be selling and so the question of branding your gas station business comes to mind.
For those wondering what the difference is between branded and unbranded gasoline, branded gasoline are those that you see marketed on a regional and national scale. You’ve got the likes of Shell, Texaco, Chevron, Mobil, and Fina just to name a few. What set’s them apart from their unbranded counterpart is that the fuel they offer contain additives which makes the performance and quality of their gasoline better. Because of the reputation they have and the image they project, these brands are what motorists would often go for when it comes to buying fuel.
Unbranded gasoline on the other hand is a lot cheaper compared to branded fuel because of one distinct quality – their fuel doesn’t contain any additives. Now just because unbranded fuel lacks those special additives, that doesn’t mean it can’t provide the same quality as its branded counterparts. On the contrary, this type performs the same way as branded fuel does, and at a fraction of the cost. This is why most car owners working on a budget consider this to be an economical alternative to branded gasoline.
So if you’re set on setting up your own gas station business, you need to be able to determine which type of fuel you should invest on before delving deeper on how to buy a gas station business. To help you determine which type of fuel to choose from, here are some of the pros and cons you can expect to see from each gasoline type:<
- Branded fuel has a reputation of being reliable and of quality. The drawback with this is that they often price their gasoline higher. You also have to deal with the lack of price negotiations and added credit card fees.
- They contain fuel additives which help improve the performance of a vehicle, making it the go-to fuel of most motorists. Unfortunately, the price to pay for this is having to follow a set of strict maintenance requirements for your station.
- Branded fuel is trusted by car owners so as someone planning to run a station, you’re bound to attract a lot of customers and generate revenue. The bad news is that you’ll be under contract with these brands for years.
- Unbranded gasoline is cheaper than branded fuel giving you value for your money. However, despite being cheap, since the brand isn’t familiar, expect people to think twice before they try your fuel.
- Station owners are allowed to negotiate for the price of unbranded fuel while avoiding additional credit card fees.
- Unbranded gasoline won’t require you to adhere to strict maintenance regulations. Without this though, don’t expect your gas station to look as chic as those selling branded fuel.
- Companies selling unbranded fuel won’t force you to get into a contract with them. The pitfall here is that you’re subject to very rare price inversions.
If you’re after more savings, unbranded is the way to go. If you want something that exudes reliability and stability, you’re better off with branded fuel. Regardless of the pros and cons though, when it comes to determining what fuel to use for your gas station business, always remember what you initially set out when you first came up with your gas station business plan and stick to it to avoid any problems in the future.
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