Depending upon your customer base and service area, the cost of delivering home heating oil is generally between 17 and 25 cents per gallon. By making your deliveries more efficient, we believe that the use of wireless tank gauges will, on average, allow you to make one less delivery to each customer over the course of the year. Let's assume that your average customer uses 800 gallons per year and that you are making 5 deliveries to that customer over the course of the year. If you are able to cut the number of deliveries to 4 per year that's a 20% reduction in deliveries and delivery costs.
Here are the numbers for that average customer:
Cost of Rollie Wireless Tank Gauge in year 1 ($65 + $6) | $71 |
Average delivery cost per customer per year (800 gallons x 21 cents per gallon) | $168 |
Savings per year from use of Rollie Wireless Tank Gauge ($168 x 20 percent) | $33.60 |
Based on these numbers the payback period is 2.1 years ($71 / $33.60) and the return on investment is 47.3 % ($33.60 / $71) in year one and 38.9% ($33.60 - $6 / $71) in all subsequent years.
While those numbers are impressive, we believe that the savings are even greater because the extra marginal delivery you need to make without the wireless gauge costs more than the other deliveries. That last delivery is the one where you will likely be paying your driver overtime or have to buy and run an additional truck to meet your delivery obligations.