BY STEVE ABBATE

Preliminary reports from fuel marketers show that 2018 was a very good year . For the most part , gallons were up , margins were strong and the new tax laws seem to be putting more after-tax dollars in owners ’ pockets . With the new Section 179 accelerated depreciation rules in place , owners now have opportunities to make capital investments .

Deciding where to spend your capital dollars is always a challenge . Understanding your needs and wants is a great first step . Funds spent on necessary repairs to stay in compliance may not be optional . Items like installing new tank bottoms in a fuel facility or adding bulk propane storage to handle capacity may be required investments . Replacing vehicles is always a capital expense item that needs to be addressed and we love our trucks in the delivered fuel industry .

Investing in technology to reduce operating expenses and

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VISIT : ESEANY . org Or Call : 518-280-6645 provide a better customer experience is a trend of the more successful companies . Customers that invested ten years ago in GPS systems , delivery routing and modern back office systems have seen the benefits . Many of those systems may be antiquated now , however they likely had quick paybacks and they gave the customer a better buying experience , which has continued to pay dividends . New technologies continue to come on the market and companies who do their homework , invest in them , and properly implement the systems often see extremely positive results .

One of the fastest growing technologies in our industry is tank monitoring . This is my personal favorite technology on the market . It was a great idea when the first systems came out some 25 years ago , but there were many issues that prevented them from being successful and they never caught on big until the last few years . The cost of tank monitors has come down significantly in the last couple of years and the reliability has increased . At the last trade show I attended there were close to a dozen companies with booths showing tank monitoring technology . These systems lower delivery costs by optimizing drop size and they help turn “ will-call ” customers into customers that " we will call ."

Imagine sending an email ( or text ) to a customer letting them know that with the current weather forecast they will run out of fuel in six days and then ask if you can fill their tank . I would like to make a bold projection : 80 % of fuel and propane delivered 10 years from now will be delivered to customers with tank monitors . Our acquisition business has seen the value variance between an automatic delivery account and a will-call account narrow , and with tank monitors , I expect it to narrow further .

Back office software is never an easy item to upgrade or replace . This requires a lot of change and people don ’ t like change . But customers do like the advantages of a modern , interactive , paperless back-office system . Your employees will eventually learn to love it also . Imagine a system where customers receive an email after they get a delivery and the payment is automatically charged to their credit card and the funds are transferred into your account the next day . That makes for a happy customer and a happy company . You don ’ t have to imagine it , you can shop for it .

It ’ s trade show season and I would encourage everyone reading this to take the time to attend one of the many industry events . Trade shows are great places to do your homework on what money-saving and customer-enhancing technologies are available . Take advantage of the tax breaks on depreciation and invest in your business . Good luck in finding the right capital improvements for your business ! l FON

24 APRIL 2019 | FUEL OIL NEWS | www . fueloilnews . com