Touching Bases: Fuel at cost; dime-per-gallon pumping charge

 - October 9, 2007, 4:40 AM

Chuck Greenwood, a Phillips 66 dealer in Ponca City, Okla., has instituted a unique pricing structure for jet operators. They can buy fuel at his cost, then pay a flat $100 fee for any amount up to the first 1,000 gallons and 10 cents per gallon for any amount greater than 1,000 gallons. Greenwood Aviation’s goal is to establish a pricing structure that is “cost effective, quick and simple” in contrast with what it describes as the “costlier practice of trying to negotiate fuel prices or working with third-party discount fuel programs.” Customers sign on to receive an e-mail on Monday morning setting the fuel price for the remainder of the week. Greenwood tested the program in a three-month e-mail marketing campaign this summer, during which he said fuel sales doubled over the same time period last year.