~ Seeking Your Opinion on a Fuel Price Guarantee Service

Thank you Terlingua,

I understand it is a heavily regulated industry.
That's why I am starting with feasibility of the idea before I build or do anything.

 

Thank you gentleroger

You can't use state averages - there's too much swing. In MO right now there is a 40 cent difference from the cheapest to most expensive. You'd have to use pump price, and if you don't think drivers know how to manipulate that then you don't know who you're trying to get into bed with.
I get your point.
If avg posted price for Diesel in Nebraska is $4.0 . And there is some gas station sells it for $3.60.
When Diesel goes up to $6.0, this same gas station will sell it for $5.60 .
The difference between $4 and $6 is the same $3.60 and $5.60 which is $2.
But the price we both can look at is the published avg price.
Do you agree?

I'm also pretty sure what you're trying to do is against SEC rules, but not certain.
I am definitely going to run this idea by lawyers to cover SEC/insurance area before I start.
For now I am checking if this has a market in the first place.
So far, based on responses I got, I don't think it has (yet!).

 

Thanks Long FLD,

I’m paying less than the pump price due to my companies cost plus discount program. You want to sell this “insurance” policy of yours based on the pump price so what I’m actually paying isn’t any of your business.
This is correct.


I could save money on my fuel purchases and still make money off you at least until you run out of new people paying for your “insurance” and can no longer pay out on your bad contracts.
You would not be able to make money from my contract unless price goes up.
You are not taking money from other contracts I create. You are taking money from my company, my company takes money from the Option( s) I used to cover your contract. I'm not running out of money because Option is covering the difference I pay you.

 

Thanks gokiddogo,


If someone did buy the option to buy it for 4.00 and it goes up to 4.25 you really think they're going to hold out for 6.00?
To clarify, you buy the contract from my company. I buy the Options covering it.
And to answer your question, In that case it is up to you to wait till it reaches $6 or not.
All I care about is once you claim it, I will give you the difference between your contract and current price (if it went up).

It doesn't really change anything if I've bought an option to buy it at x price if I still have to consider if the price is going up or down. Is that why you want customers to buy the option for a whole years worth of fuel?
The customer is buying a contract I sell. I cover it with Options.


Sounds like a pyramid scheme to me. If it isn't, I guess I'm just not smart enough to understand it. Guess I'll just keep paying my discount at whatever the market rate is for the day.
I do not think it is a pyramid scheme. I am not asking you to sell the contract to anyone.
I think I am not good in sales. lol
Thank you for your feedback.

 

Thanks gokiddogo,

Almost nobody times the lows and highs of any market and when it does happen it's more luck than number crunching.
That's correct.

Saving a bit on fuel isn't going to produce wild stacks of money. Now what you need to do is get one of those 10 mpg freightliners and a fixed 1.25 a gallon, come on
It is not meant to make you rich. The main purpose is to cap/lock fuel cost for the amount you chose.
It is meant to be like insurance. Not an investment.
Even if you get $5 a gallon difference, you are still paying that difference (or some of it) on pump.