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Fueling Solutions Blog

The Real Cost of a Lost Gallon

[fa icon="calendar"] Sep 1, 2016 9:05:00 AM / by Veeder-Root

Veeder-Root

Do you know what a lost gallon of fuel is really costing you? When even a single gallon of fuel is unaccounted for at the end of the day, more is at stake than the few dollars that gallon cost at wholesale. For example, if you lose a gallon of fuel that was purchased at $3 and has an average margin of 17 cents, you would have to sell over 17.5 more gallons of fuel just to make up the revenue lost. On a larger scale, the theft of 250 gallons of fuel would require the sale of an additional 4,375 gallons to break even.

With the threat of tank leaks, theft, and a slew of other sources of fuel loss threatening your profitability every day, a clear understanding of what a lost gallon of fuel really costs is the first step to combating fuel loss and improving your business's operations.

Fuel margins are simply too thin to risk theft or loss. “The average gross margin on fuel has averaged only 6.2% before expenses over the past five years,” according to the NACS 2016 Retail Fuels Report. “After factoring in expenses, most retailers make, at best, a few cents per gallon in pretax profit, and may even lose money on some sales when margins are tight and credit card expenses are high.”

See full-scale how fuel losses can eat into your profits.
Click to enlarge:

Each Gallon Lost Cost_600.png

 


Ready to start combating the lost gallon? Contact us today to discuss how Veeder-Root's portfolio of fuel management hardware, software, and service solutions can help you detect and reduce fuel loss in real time.

Topics: Fuel Loss

Veeder-Root

Written by Veeder-Root