Mini Tankers seeks new franchisees

One wet afternoon in 1987, two retired Melbourne air traffic controllers overheard a couple of earthmoving contractors bemoaning the lack of convenient refuelling facilities and the difficulties in obtaining fuel for their plant and machinery on site.

They immediately thought of the small avgas tankers that service aeroplanes where they park at Essendon and Moorabbin, and other secondary airports around the country.

After their market research confirmed demand for such a business, they introduced on site diesel refuelling for earthmoving equipment using small, manoeuvrable tankers to access construction sites.

So Mini Tankers was born and with a change of ownership in 1989, has since grown to be Australia's number one on-site diesel refuelling service, with operations in all mainland states and territories. Its Australian success has spearheaded expansion overseas with Mini Tankers now firmly established in New Zealand and Canada as well.

Franchise system

Currently Mini-Tankers operates 52 tankers throughout Australia where the service is delivered by a franchise system network with additional support by company tankers and operators. It has 23 franchisees and another 29 company owned and operated vehicles in Australia.

“But we'd like to see a greater proportion of the serviced areas and new territories becoming franchises so 70 to 80% of the operation is delivered by franchisees. In the next year we want to see about eight franchisees come on board,” said Mini Tankers general manager Greg Strom.

He believes the qualities of the franchisees he would like to take on board, will most likely be found among owner operators in the construction or earthmoving industries. “Alternatively, they might be existing employees in our industry looking for a change. In a nutshell they need to be fit, prepared to operate at any time of the day seven days a week, excell at providing customer service and have a good driving record,” Strom said.

Customer service

But he makes the point that it is not a truck-driving job. “This business is all about providing a first class service and having the right attitude to deal with a broad range of people and situations. The ability to communicate with customers, develop relationships on-site and work effectively in a team environment where meeting customers expectations and needs is all important,” Strom says.

Franchise licences start at $70,000 for a five-year licence agreement to operate in a particular territory with a further five-year option available.

Three sizes of trucks, built to Mini Tankers' strict specifications, are available for lease and franchisees are trained carefully in their operation. Then they are monitored and supported by Mini Tankers staff, and are subject to an annual audit under the company's ISO900:2000 quality accreditation. Then there is on-going training for all operators to maintain the high level of professionalism expected.

Strom emphasises that OH&S and environmental issues are all important in the operation. “Even a small fuel spill or accident can have massive repercussions for our people, the company and the integrity of our customers' operations. For example, the company has three Mini Tankers dedicated to service some of the 600 to 700 machines building the M7 motorway in western Sydney for the Abigroup Leighton joint venture. With well over 100 watercourses to cross in its 40km, the joint venture just can't afford to have a spill.

“They need to know where every litre of fuel comes on to that site and where it is dispensed and used. So our sophisticated recording system gives them peace of mind. And what you see fitted to our trucks is the same as the equipment fitted to B double tankers making bulk deliveries.”

Construction core

Construction and earthmoving will always be the core business for Mini Tankers – currently it is about 45% - although other areas like demolition, marine, transport, forestry equipment and even train refuelling, tend to compensate for the boom and bust of construction.

Strom says one of the major advantages of the MT franchise system is its sheer simplicity. MTA looks after all the fuel and lubricants supply contracts, customer invoicing and debt collection. Mini-Tankers even supplies the latest on-board computer technology in each truck to manage transactional information. This means that all the franchisee needs to focus on is picking up the fuel from the nominated depot and refuelling on site.

Marketing manager Michael Vamos says it is not a business that makes franchisees millionaires. “But those that go the extra distance for their customers, are very well rewarded,” he says. That reward is based on the number of litres of diesel the franchisee dispenses.

Further information: Michael Vamos, 02 9440 5544.