CURRENT O/O FUEL PRICE CAP
- Thread starter Jaydee
- Start date
Thats a loaded question. I've had a number of O/O come through my door with fuel programs from other carriers that make no sense to me and no sense to them. Most carriers take advantage of the fact that most O/O are operational minded people with no business or financial acumen.
You want something that is no maintenance and properly reimburses the O/O. You need to create a payment matrix that makes sense so that O/O can figure it out. They need to ensure that when fuel changes they can plug the numbers into an equation and feel good that all is ok. If not, they'll be headed for the door, and you'll be dealing with the headaches of replacing the O/O. I recommend that a fuel calculation has both a fuel and exchange component that can be looked up from a third party based on where they buy their fuel. If they are only Canadian O/O then make sure you're getting the fuel cost from a Canadian source/website. Fuel from the US you can use the DOE website but then use the exchange set by the Bank of Canada.
After all, that is how you calculate your costs to your customers right?
You want something that is no maintenance and properly reimburses the O/O. You need to create a payment matrix that makes sense so that O/O can figure it out. They need to ensure that when fuel changes they can plug the numbers into an equation and feel good that all is ok. If not, they'll be headed for the door, and you'll be dealing with the headaches of replacing the O/O. I recommend that a fuel calculation has both a fuel and exchange component that can be looked up from a third party based on where they buy their fuel. If they are only Canadian O/O then make sure you're getting the fuel cost from a Canadian source/website. Fuel from the US you can use the DOE website but then use the exchange set by the Bank of Canada.
After all, that is how you calculate your costs to your customers right?
