Industry Analysis & Industry Trends
Industry performance tends to fluctuate widely, in line with crude oil prices and competitors' offerings. Fuel dealers can pass on product price increases or decreases to customers, which causes industry revenue react accordingly. Consequently, as the world price of crude oil dropped during the recession, so did industry revenue. The price of crude oil is expected to continue to decrease, hurting industry operators. However, an improving overall economy will boost revenue and lead to modest industry growth... purchase to read more
Industry Report - Starting a New Business Chapter
The Fuel Dealers industry has moderate barriers to entry. Firms that attempt to enter the industry must gain access to cost-effective and reliable sources of heating oil and propane for distribution. They also need to attract a customer base, most commonly from existing dealerships. High industry competition limits access to customers.
New firms lack economies of scale because they have few customers when first entering the industry. If customers are geographically distant, transportation costs may be prohibitive due to high per-unit expenses. Because the industry's products are generic, operators differentiate themselves through service and efficiency. New firms can find it difficult to gain a good reputation for service and efficiency in a short period of time... purchase to read more