RPF Oil Company is a family-owned business specializing in fuel sales and delivery. They supply gasoline and diesel to over 100 Michigan gas stations, and distribute kerosene, diesel, ethanol-based gasoline, and E-85 to a growing list of customers.
RPF Oil was approached by one of their dealers who owned a piece of land close to Detroit International Airport, next to the rental car return point. The dealer wanted to build a fuel site on the land, funded by RPF Oil. The company was reluctant to risk the investment without knowing whether this site was going to be profitable.
Executive Chairman Dan Fleckenstein remarked, “I’m looking for scientific objective data. I already have my gut feeling on whether I think a site is going to do well. Sometimes my gut is right, sometimes it’s wrong, but I’m really looking for hard data.”
RPF Oil commissioned a Single Site Analysis feasibility study to understand the potential of the site. Believing this to be a prudent action, Fleckenstein noted, “The size of the bet has increased […] now that sites cost so much money. Our average site costs between two and four million to build. Why wouldn’t you spend 6K to have another point of view to validate the investment?”
Based on the results of the report, RPF Oil decided to go ahead with the proposed site build. They also commissioned six other reports for other sites.
“I would recommend using Kalibrate. They give you another layer of information. The reports themselves — the way they’re organized — help you to look at empirical data relative to your decision. It’s good to have this information when you go for financing. It makes us look more professional when we include it in our PowerPoint to our investors. They think, ‘These people have done their homework.’”
— Dan Fleckenstein, Executive Chairman (Owner), RPF Oil Company