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PRICE
MANAGEMENT PROGRAMS OFFER THE POTENTIAL FOR THE FOLLOWING:
- increasing
your profits by controlling your fuel cost
- removing
volatility from your fuel cost expense
- knowing
your fuel costs in advance - a bonus in budgeting
- reducing
the impact of supply/demand price uncertainties
PRICE
MANAGEMENT PROGRAMS ARE ATTRACTIVE TO MANY SEGMENTS OF THE
TRANSPORTATION INDUSTRY. FOR EXAMPLE:
Trucking:
Since the second largest fixed expense in the trucking industry is fuel
cost, doesn't it make sense to manage this expense? Investments have
been made in low-profile tires, fuel additives, electronic ignition
systems and air foils all designed to increase fuel mileage and thus
reduce operating expenses. A well designed price management program
from PTC will pay benefits by allowing you to treat fuel cost as a
managed, basic expense. This will not only impact your bottom line, but
will allow you to better serve your potential and existing customers.
You will be able to give accurate freight rate estimates based on known
fuel costs and offer pro-active price protection for your customer
base, thus curtailing the need for fuel cost adjustments. Concurrently,
you prospect to gain an edge in the market by offering more competitive
freight rate costs.
Government
and Related Agencies: The benefits of a price management program
include predictable and accurate budgeting. Instead of forecasting
where fuel costs will go and then suffering the consequences of market
volatility, your fuel costs will be known and managed. Many agencies
across the country use price management to their advantage. Not only
does it add an ease of administration, but also there is often the
potential for guaranteed savings versus the previous year's budget.
Firm prices assure exact and accurate budgeting.
Branded
and Unbranded Distributors: PTC can meet your demand for firm
priced quotes among government agencies, bus fleets, etc. A price
management program with PTC can help you secure additional business
with trucking fleet business. Additionally, through Petroleum Traders
Corporation's swaps, you have the potential to gain new market shares
in retail home heat business while maintaining purchases of fuel from
your historical suppliers.
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