NBJ PR Wire

4REFUEL TAKES AIM AT HIGH FUEL COSTS IN LAS VEGAS

Release Date: October 27, 2008

Contact: Megan Downey

(Las Vegas, NV)--- According to industry averages, fueling a commercial vehicle takes roughly 20 minutes. For a company with a fleet of 30 delivery trucks to fuel, however, that 20 minutes jumps to 600 minutes (10 hours), during which time no deliveries can be made.

For 4Refuel, that wasted time is simply unacceptable. The Langley, British Columbia-based company is hoping to quell this downtime for Las Vegas businesses by bringing at least 10 tanker trucks to the area and the company is actively seeking franchisees. "With the rising price of fuel costs, our services are in high-demand, especially from area business owners," said Norm Bogner, vice president of international development for 4Refuel. "Last year alone, we were able to save our clients over $20 million dollars. Furthermore, by reducing the amount of fuel consumption, 4Refuel prevented just under 40 million pounds of greenhouse gases from entering the atmosphere - the equivalent of removing 3,300 cars from the road!" said Bogner.
While most complain about the rising cost of fuel, 4Refuel offers the opportunity to get involved in the industry at a level where you are really making a difference. "It's a chance for prospective franchisees to be part of something that is a major global opportunity," said Jack Lee, 4Refuel's president.
4Refuel is a fuel management company that synergizes logistics and information to focus on the productivity, efficiency, and control aspects of our client's fuel. By controlling fuel costs, we help them be more productive and more efficient. We leverage industry-leading and proprietary technologies combined with a dedicated client focus service element that helps our clients manage their fuel and treat it as an investment rather than a cost. For our clients, Fuel Management is about "maximizing the cost of refueling and maximizing fuel and time efficiency".
4Refuel helps companies fight the high cost of fuel with complete fuel management services that include onsite diesel refueling, fuel logistics, automated fleet management and biodiesel solutions for any company that uses diesel or biodiesel as its fuel, including those with fleet vehicles or operating equipment in industries such as transportation, construction, government/municipalities, power generation, industrial, marine, mining, rail and airport ground services.
"In the case of the company with 30 trucks, you're talking about giving a client back 10 hours a day of productivity," said Bogner. "How many more deliveries can you make in 10 hours? And if productivity isn't a concern, maybe it's labor. We're giving you back 10 hours a day to reduce your overtime costs. Whether companies refuel at the beginning or end of the day, it's added time. It cuts down on your asset utilization - using your equipment or vehicles for what they're supposed to be doing instead of sitting idle - and we are excited to bring this service to the Las Vegas market."
The company currently has 6,000 clients across Canada and the U.S. that 4Refuel has serviced for over 13 years. These range from major Fortune 100 companies such as major beverage companies, international couriers and large rail companies, to smaller construction and fleet organizations with three or four pieces of equipment. If it is a standard or biodiesel consuming asset, 4Refuel services it.
The estimated initial investment for 4Refuel ranges between $550,000 and $850,000, including a $50,000 franchise fee and a $25,000 per truck in unit development fee; the $100,000 unit development fee for the first four tanker trucks is due upon agreement signing. The royalty on fuel is the greater of 8 percent of gross margin on sales or 3.5 cents per gallon of fuel delivered to customers and there are currently no advertising fees.
4Refuel charges clients on a cents-per-gallon basis, on top of the wholesale cost of the fuel. Even with the service charge, 4Refuel is able to demonstrate and provide significant cost savings and productivity gains to it clients by illustrating the "true cost" of their fuel. 4Refuel then provides detailed reporting of what piece of equipment got what fuel at what time; this is done almost real time from when the vehicles are fueled. All of that information - including pricing, volume and even a duplicate invoice - is available online.
"4Refuel is not about fuel; we're about the fuel management services we provide that allows clients to treat their fuel as and INVESTMENT versus a COST. And since clients demand a return on investment, we provide them with the information to do so. If a company thinks they are paying $3 a gallon by the time you incorporate labor costs, down time and loss of productivity multiplied by the pieces of equipment or vehicles you have, the cost is much, much higher," said Bogner, who added that 4Refuel can even benefit clients who refuel on their own by offering customized solutions based on clients' needs. "We analyze their fuel costs and if we can't show the client in black and white using their numbers that we can save them money either in productivity or labor gains, then our service is not for them. But we find in an overwhelming majority of cases that when we analyze their true cost of fuel, we can save that client money."
In addition to saving clients money, 4Refuel is doing its part to combat global warming. Since beginning onsite fuel management services in 1995, 4Refuel has cut greenhouse gas emissions by almost 160 million pounds! "It's always been about saving money," said Lee, "but now it's also about cutting greenhouse gases and reducing risk to the environment."
4Refuel has approximately 115 tanker trucks operating in Canada, with about two-thirds of those company-operated. 4Refuel launched its first "corporate franchise" in the United States in Seattle on Aug. 1, 2007. Expansion will be focused primarily in western states and 4Refuel expects to have 50 to 75 tanker trucks operating in the U.S. by the end of 2010, about 80 percent of which will be franchisee owned. Regional franchisees will be granted exclusive territories in which they will be required to operate a minimum of four tanker trucks during their first year in business and adding a minimum of two units each of their next three years in business. About 25 to 35 tanker trucks will be added in Canada during the same period and expansion activities in other regions of the world including Europe and Asia are ongoing.
For more information, call 604-513-0386 or visit www.4refuel.com.
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