~ Seeking Your Opinion on a Fuel Price Guarantee Service

I remember hearing how Southwest Airlines was really good at buying their fuel on a contract.They made out crazy good buying a huge amount just before the prices went high

 

Limiting your potential customers to just one state will exclude OTR and regional O/Os & fleets.

 

Place your bets here!!!! There’s gonna be a “lock” symbol appearing here soon!

 

The risk is with you. You are not approaching this as someone experienced with the process or how to sell it.

See here is the problem, this is already being done and while it is common for bigger fleets, it isn't here because it isn't cost effective. The cost of the option and the associated fees having a (essentially) broker handle this as a hedge vehicle may not be as cosrt effective because the amount of money to make a good ROI has to include the road taxes, with the state and federal sales tax rolled into it. I know you will come back and explain this one way or another but to be effective it has to be at least a dollar spread on the option, which can happen but unlikely.

Now if others want to know how this all works, go here and read about it.

The Fundamentals of Diesel Fuel Hedging - Swaps

 

I think you're right. Everyone has basically said the same thing to the OP...his idea is a bad one and it doesn't really favor the drivers.
Time for the OP to back off and do some thinking.
Maybe he can put all that brain power to work on a scheme that will actually do O/Os some good.

 

In this day when diesel is being transitioned to other energy sources.

Be tough to keep diesel prices up. So hedging wouldn't be a very smart move.

Sort of like that whole moviepass idea. Didn't take them long to go bankrupt.

 

This is still going on? Another one trying to ride O/O coat tails. They see all the money an operator shells out on equipment so they assume they must be rolling in money to send to some guy noone has heard from before, only a guarantee of "trust me, im not like the others." In an industry plagued with shady practices anyone with half a brain will be highly skeptical.

The guy just wants your cash so he can go play at options trading. Another that wants to just sit behind a computer screen who knows where and suck off the profits from someone who is doing the real work.