E-85 vs UNL87 Delivered Cost Comparison
Example: 1st half 2014, retailers purchased delivered E85 from The Andersons at 85 cent /gallon lower delivered cost than UNL87! Most retailers sell E85 at a 60-70 cent discount to UNL87 price... therefore pocketing 15-25 cents / gallon ADDED margin over UNL87! Also attracting more consumers due to posted E85 price... thereby increasing inside sales!
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Top Reasons to Carry E-85
- With only 3,300 stations offering E-85 nationwide, carrying E-85 will differentiate your store from others.
- You can increase your profit margin while lowering the price of fuel to the consumer.
- Offering E-85 attracts new customers, which increases fuel and in-store sales. Most municipal vehicles like police, fire and city maintenance are flex fuel vehicles.
- E-85 is commonly sold at a strong discount to unleaded gasoline.
- There are nearly 16 million flex-fuel vehicles on the road, with more being produced every day.
- Installing E-85 helps to prepare your station for future blends.
- E-85 is better for the environment, which appeals to the environmental consumer with flex fuel vehicles.
- Installing E-85 isn’t as expensive as you might think.
- E-85 sold through a blender pump (dispenser) allows you to offer more blends meaning more options for your customers.
- You can buy directly from ethanol plants, which avoids fuel terminal margins, middleman markups and higher prices.