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Gasoline Marketing
   Posted June 05, 2008                                                                               JLZ Business Services
 

Our Gasoline Marketing Section provides valuable on-line information for the gasoline retailer. Browse away ... we're certain you'll find information to make your business more successful. 

Where have all the profits gone?

Keeping a Tight Ship Tight

                   

Do you give away free gas?

Problems with gasoline meters are among the most common mechanical problems at fuel dispensing facilities. Many cases can be quoted on this type of problem. Principally these problems are dealt with by dispatching technicians to sites for a gasoline meter check and calibration if necessary.

One common misconception is that gas measurement errors are random and that precision errors will "average out" to zero over the long term. To the contrary, most measurement errors are bias or systematic errors. Bias errors are repeatable in both magnitude and direction. For example, a biased gas meter that under-registers today will under-register tomorrow and the days that follow.

Pump Calibration facts:

  • As a dispenser pumps gas, it can wear out various mechanically driven parts.

  • The greater the volume, the greater the obsolescence, the greater chance for mis-calibration.

  • The older the dispenser, the greater the obsolesce, hence the greater chance for mis-calibration.

  • To test a gasoline dispenser for proper calibration, a special calibration gasoline can is used by the tester to measure the fuel.

  • Calibration gasoline cans measure gasoline in gallons and in cubic inches.

  • Two tests measure gallons dispensed for calibration.

  • Measurements are made in gallons (5), and in cubic inches.

  • One test is of 5 gallons at slow speed (1st click on nozzle).

  • Second test is of 5 gallons at high speed (3rd click on nozzle).

  • All gasoline measured in test is returned to proper underground tank (we hope).

  • Tester provides written report on each nozzle tested. The results are measured in gals and cu.in.

  • Tolerances over/short 5.0 gals are measured in cu.in

  • Acceptable tolerances are: 0 = 5.0 gals exact, to 7 cu.in. plus or minus (varies by county).

  • For tolerance readings of 8 cu.in. plus or minus, the nozzle is red-tagged and must be re-calibrated.

  • For tolerance readings of 10 cu. in. short, the nozzle is red tagged for repair and the dealer can be fined as provided for by law.

  • When your pump is deemed to be out of calibration, the calibration is always paid for by the dealer.

But what about those pumps over between 1 & 7 cu. in. per 5 gallon test?

THEY ARE ALL WITHIN TOLERANCE AND DO NOT GET CALIBRATED!

Fact Sheet

  • 231 cubic inches = 1 gallon

  • 5 cu. in. divided by 5 gals = 1 cu. in. per gal

Little Things Become Big

Just 1 cu. in. "give-away" on every 5 gal sale / 200,000 gallons monthly = 40,000 5 gallon sales.

40,000 5 gallon sales x 1 cu. in. per 5 gallons = 40,000 cu. in. divided by 231 cu. in. per gal = 173 gallons.

Sample Exercise:

Average Gallon Replacement Cost $3.87.4 (includes pre-paid sales tax)

173 gallons "given away" x $3.874 average gal. replacement cost = $670.20 monthly.

$670.20 x 12 months = $8,042.40 yearly.

$8,042.40 yearly x 5 years = $40,212.00 (WOW!)

Pump Calibration Guidelines

Need a calibration can? Click here >

  • Purchase calibration gas can from the same supplier who sells you nozzles & hoses.

  • The can costs vary by type and quality. I would buy the best one.

  • Keep can in a safe & secure place. ANY dent or ding means the can is no longer correctly calibrated.

  • Check for calibration all pumps monthly using the slow/fast method as described above.

  • Use a suitable form to record the calibration readings from each nozzle, slow & fast.

  • Compare current calibration results to that of the previous months test.

  • "Bag" nozzle immediately that is out of calibration.

  • Correct mis-calibrated pumps without delay.

  • Make frequent comparisons between your daily book, APCD log sheet delivered vs. gallons sold, and the gallons reading from the Veeder-Root print out.

  • All nozzles should be checked for calibration monthly, the larger your volume, the greater the potential "give away".

  • If you have a large volume station, or a station that has many nozzles, tests for calibrations could be done "one island per week".

  • The average time to test 24 nozzles is about 4-5 hours.

Pump calibration tests are not high tech and very simple. The most difficult thing about it is doing it accurately. Anyone can do it but you must do it carefully. Watch when filling the can, it’s not that easy to be exact. Pay attention to the slope of your driveway, and a level should be purchased to ensure the calibration can is placed on a flat, level surface.

                   Note:

  • You can hire the same company that calibrates your pumps for your brand oil company.

  • You can hire them on a "contract" basis to test and calibrate frequently.