Introduction to Juice Fuel
Cory and his wife Caroline built a 7-figure business, Juice Fuel, which delivers gas straight to customers’ driveways, eliminating the need for gas stations. They started with $77,000 in revenue in the first year, jumped to $385,000 in the second year, and exceeded $1 million in the third year, without big tech or investors, just by executing an overlooked business model and showcasing relatable family values.
Business Model and Strategy
The business model includes gas, subscriptions, and an app, allowing customers to input their address and vehicle type to request fuel delivery. The company uses technology to improve customer experience, providing a 30-minute delivery window and using GPS for efficient routing. They also have a unique approach to marketing, which includes insulting people on Instagram, leading to engagement and building their business.
- Mobile gas station concept with three tankers
- Costs include tanker expenses and fuel costs
- Shipping costs are built into the freight rate of the supplier
Growth and Scaling
The business started with one truck and two tanks, offering regular and premium gas. Initially, Cory and Caroline handled deliveries and also worked a 9-to-5 job. In the first year, they personally did the fueling, but by year two, they hired drivers and expanded services to include delivering fuel to boats. The company has since grown to four employees and has a system for filling up boats with fuel, with a solution that doesn’t limit them to the length of the hose, allowing for more efficiency in their operations.
- Four employees and a growing customer base
- System for filling up boats with fuel, with a solution that doesn’t limit them to the length of the hose
- Temporary nickname for the solution: “the juice box”
Customer Relationships and Revenue
The company has a non-subscription model, allowing customers to downgrade, and they use marketing techniques to nurture relationships and aim to lock customers into subscription-based recurring revenue. The goal is to have a customer’s credit card on file to facilitate potential future sales, whether it’s leasing, selling, or offering less expensive alternatives. Customer spending varies greatly, with individual vehicles spending around $2,500 per year on fuel, and families spending up to $5,000.
- Non-subscription model with options to downgrade
- Marketing techniques to nurture relationships and aim for subscription-based recurring revenue
- Customer spending varies greatly, with individual vehicles spending around $2,500 per year on fuel, and families spending up to $5,000
Financials and Pricing
The company sells gas to customers, including those with private docks, at various prices, making around 30 cents on regular gas and 60 cents on premium, with additional fees for delivery or subscription. They can compete with marinas due to their built-in margin. The business model has three upsell opportunities, earning between $0.50 to $150 per gallon per customer.
- Pricing strategy with markup on fuel, subscription services, and delivery fees
- Three upsell opportunities, earning between $0.50 to $150 per gallon per customer
- Customer spending varies greatly, with individual vehicles spending around $2,500 per year on fuel, and families spending up to $5,000
Partnerships and Acquisition
The company partners with marinas to offer fuel to their customers, generating revenue through a markup on fuel, subscription services, and delivery fees. They are open to potential acquisition offers and have a simple model with opportunities for growth and expansion.
- Partnerships with marinas to offer fuel to their customers
- Open to potential acquisition offers
- Simple model with opportunities for growth and expansion
Conclusion and Future Plans
Cory and Caroline’s business, Juice Fuel, has achieved significant success through its unique approach to fuel delivery and customer relationships. The company plans to continue growing and expanding its services, with a focus on commercial contracts and bundled services. With its simple and profitable business model, Juice Fuel is well-positioned for future success and potential acquisition offers.
Key Vocabulary
| Term | Pronunciation | Definition | Example Usage |
|---|---|---|---|
| Entrepreneur | /ˌɒntrəprəˈnəːr/ | A person who sets up and runs their own business, often taking on financial risks. | Cory and his wife Caroline are entrepreneurs who built a successful business, Juice Fuel. |
| Subscription-based | /səbˈskrɪpʃən beɪst/ | A business model in which customers pay a recurring fee for access to a product or service. | Juice Fuel aims to lock customers into subscription-based recurring revenue. |
| Recurring revenue | /rɪˈkɜːrɪŋ ˈrɛvənjuː/ | Income that is received on a regular basis, such as monthly or annually. | The company aims to generate recurring revenue through subscription services. |
| Upsell | /ʌpˈsɛl/ | To offer a customer a more expensive or upgraded version of a product or service. | Juice Fuel has three upsell opportunities, earning between $0.50 to $150 per gallon per customer. |
| Markup | /ˈmɑːrkʌp/ | The amount added to the cost of a product or service to determine its selling price. | The company makes a markup on fuel, subscription services, and delivery fees. |
| Acquisition | /ˌæk.wɪˈzɪʃən/ | The act of buying or taking control of a company or business. | Juice Fuel is open to potential acquisition offers. |
| Partnership | /ˈpɑːtnəʃɪp/ | A relationship between two or more people or organizations that work together to achieve a common goal. | Juice Fuel partners with marinas to offer fuel to their customers. |
| Freight rate | /ˈfreɪt reɪt/ | The cost of transporting goods from one place to another. | Shipping costs are built into the freight rate of the supplier. |
| Efficient routing | /ɪˈfɪʃnt raʊtɪŋ/ | The process of finding the most cost-effective and time-effective way to deliver goods or services. | The company uses GPS for efficient routing to deliver fuel to customers. |
| Customer experience | /ˌkʌstəmər ɪkˈspɪəriəns/ | The overall perception a customer has of a company or business, based on their interactions with it. | The company uses technology to improve customer experience, providing a 30-minute delivery window. |
| Downgrade | /daʊnˈgreɪd/ | To move to a lower level of service or product, often in exchange for a lower price. | The company has a non-subscription model, allowing customers to downgrade. |
| Nurture | /ˈnɜːrʃər/ | To care for and support the growth or development of something, such as a relationship or a business. | The company uses marketing techniques to nurture relationships with customers. |
| Recurring | /rɪˈkɜːrɪŋ/ | Happening or done again and again, often at regular intervals. | The company aims to generate recurring revenue through subscription services. |
| Commercial contracts | /kəˈmɜːrʃəl ˈkɒn.trækts/ | Agreements between businesses for the supply of goods or services. | The company plans to focus on commercial contracts as part of its growth strategy. |
| Bundled services | /ˈbʌndəld ˈsɜːrvɪsɪz/ | A package of services or products sold together at a single price. | The company plans to offer bundled services as part of its growth strategy. |
| Expansion | /ɪkˈspænʃən/ | The process of becoming or making something larger or more extensive. | The company has opportunities for growth and expansion. |
| Margin | /ˈmɑːrdʒɪn/ | The difference between the cost of producing or purchasing something and its selling price. | The company has a built-in margin that allows it to compete with marinas. |
| Delivery window | /dɪˈlɪvəri ˈwɪndəʊ/ | A period of time during which a delivery is expected to be made. | The company provides a 30-minute delivery window for fuel delivery. |
| GPS | /dʒiː piː ɛs/ | A system of satellites and receivers that provide location information and timing signals. | The company uses GPS for efficient routing to deliver fuel to customers. |
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Grammar Focus
Grammar Focus: The Use of the Present Perfect Continuous Tense
The present perfect continuous tense is used to describe an action that started in the past and continues up to the present moment. It is formed using the present tense of the auxiliary verb ‘has/have’ + ‘been’ + the present participle of the main verb (e.g., ‘has been growing’). In the context of the provided text, this tense can be used to describe the growth and development of Juice Fuel, such as ‘The company has been expanding its services’ or ‘Cory and Caroline have been working on their business model’. This tense is suitable for CEFR C1 level learners as it requires an understanding of complex verb forms and their applications in different contexts.
