With heating oil prices uppermost in everyone’s mind, there has been much talk about whether forming or joining Buying Groups can save money for individual householders.
Oakley’s are happy to pass on any savings in delivery time and road fuel usage that we are able to make as a result of delivering to a Buying Group of people in a local area. If you run, or are thinking of forming, a buying group with near neighbours, here’s what you need to know about how Oakley’s prices are affected.
The optimum order from a buying group is around 17,000 litres. That is the carrying capacity of one of Oakley’s larger delivery tankers. If we can deliver a tanker full to several drops in one limited area, there are the greatest savings for everyone. However, many buying groups can still make savings on lesser quantities.
The price per litre that a buying group can achieve depends on the following factors:
1 – overall round-trip distance to all the group delivery points from our nearest storage depot (Telford or Kingsbury). The closer together the deliveries are, the greater the potential savings in driver time and transport fuel to complete the group’s order. We will work out the most cost-effective route before giving you a price per litre. If buying group deliveries are many miles apart, then the savings will be smaller.
2 – number of deliveries. The larger the average size of each delivery, the greater the savings in driver time and transport costs that Oakley’s can pass on to the group.
3 – access for our standard tankers. For example, if one of the group drops can be made only by a mini-tanker, we will have to factor in the extra costs of sending out a small vehicle for that particular delivery.
4 – time restrictions. If one of the drops is stipulated for a certain time or a specific day (for example only after 2pm, or only on a Wednesday), we may have to visit the area more than once, eating into the time and transport discounts available to the group.
Customers who already place substantial orders as individuals (say 2,000 litres or more) may see the smallest savings in a buying group. That is because they will already be receiving a favourable pence per litre rate from Oakley’s based on the volume of their order. Users who generally order smaller quantities (say 500 or 1,000 litres) could see relatively greater benefits, because their individual volume discounts will not have been as big. The price per litre they pay will reflect the overall group order volume.
Oakley’s are always interested in hearing from buying groups. If you want to talk further to us about group buying, please speak to Shirley at Oakley’s Telford depot (01952 684 600) or Peter at our Kingsbury, Tamworth depot (01827 875 588).