by John Keller | Dec 5, 2011 | Fuel Price Management, Fuel Price Management Solutions, Fuel Price Optimization, Fuel Pricing Strategy
A federal antitrust complaint is alleging that QuikTrip is setting their fuel prices below cost. Parker’s is another c-store chain that is fighting to keep their fuel prices aggressive. These allegations are part of the fuel pricing game for those who are fighting at the low end of the fuel price market.
When c-stores find themselves in these suits, the key to minimizing legal costs is to have access to a fuel price management system that maintains a complete audit trail of fuel prices and cost over time, down to the daily and even hourly level on a store by store basis. To prove innocence, it may be required to report both replacement and actual cost.
With the PriceAdvantage fuel price management system, these lawsuits are nothing to be afraid of.
by John Keller | Dec 5, 2011 | Industry News, Retail Fuel Margins
In a December 4 CNN article Trilby Lundberg of the Lundberg Survey said retail fuel margins are on a downward trend as a result of ongoing reduced fuel demand throughout the US market. From a fuel price management and c-store public relations perspective, these articles are positive in that they present a realistic picture to the consumer, bringing awareness to the public that higher fuel prices do not mean more profits for fuel retailers.
According to NACS Online, average US retail fuel margins were at $0.215 on December 2, down from $0.27 the previous Friday.
by John Keller | Dec 2, 2011 | Fuel Price Management, Fuel Pricing Strategy, Industry News
NACS Online reported today that after 30 years of not allowing credit card payments at the fuel pump, Arco will now allow customers to use credit cards. Arco will advertise cash and credit fuel pricing on their fuel price signs.
The change in the Arco fuel price management strategy has already begun in Seattle and is expected to spread to the remaining Arco stores throughout the US west of the Rockies.
Since 1982, Arco has only accepted cash, debit and gas cards. A return to credit cards by Arco could have a major impact on pump prices in western states where the company and Costco often vie for the title of lowest-priced fuel retailer in the market, experts say.
The NACS article continues: “There’s no telling what the landscape would be like as to price and volume rankings if Arco is going to accept credit cards market-wide, but such a decision will be the second massive game-changing move in three decades, by the same brand,” says petroleum marketing analyst Trilby Lundberg.
“Everyone, from Chevron to Costco, and of course consumers, would be affected if Arco dumps its ultra low-price strategy. Brand loyalty would be transformed in one way or another. Arco’s price personality may or may not be revolutionized, but it would be affected not only by its taking credit cards but by the reactions of its competitors,” Lundberg added.
The fuel price differential between Arco and Costco has shrunk dramatically over the years, causing speculation for the basis of this change in Arco’s fuel price management strategy.
Fuel Pricing Analysts will be watching each of their markets carefully to see the impact of this fuel price strategy change across their competitors, and the fuel volume and margin impact. No question this is a significant change to the fuel pricing landscape.
The full NACS article may be found here.
by John Keller | Dec 2, 2011 | Industry News
Fuels demand was lower again in October year over year. According to the American Petroleum Institute, and reported by NPNweb.com, motor fuels demand was down 0.3 percent in 2011 compared to 2010. API chief economist John Felmy blames the “disappointing consumer confidence”.
This is another data point indicator showing the competitive nature of the fuels pricing industry, where c-stores are chasing an ever diminishing fuel volume market, albeit slight this month.
by John Keller | Nov 29, 2011 | Customer News, Fuel Price Management Solutions, Fuel Pricing Technology
PriceAdvantage, a division of Skyline Products, announced today that The Spinx Company has been using PriceAdvantage at its 65 Spinx stores across the Carolinas. PriceAdvantage, a fuel price management solution, has given Spinx the ability to make better fuel pricing decisions given the real-time intelligence provided for each store, such as competitor survey data, volume histories and retail margins.
Spinx stores also utilize PriceAdvantage to feed price changes to the Radiant POS systems, pump and Skyline electronic price signs with the one click technology that is unique to PriceAdvantage.
“We couldn’t be happier that PriceAdvantage has replaced our previous fuel pricing solution”, says Stewart Spinks, founder and CEO of The Spinx Company. “It is a superior tool in that it gives us the ability to pull historical data easily, manage multiple price changes per day and provide a user-friendly interface at the headquarters and store level.”
Spinks adds, “We have found that our store managers are spending about 45% less time entering data into the system since we began using PriceAdvantage, giving them more time to focus on customers.”
Aaron McHugh, Head of PriceAdvantage division, adds “It’s invigorating to hear from an Industry Hall of Famer like Stewart Spinks that PriceAdvantage is providing The Spinx Company with a more efficient and effective fuel pricing tool.”
Stewart Spinks was recently inducted into the Convenience Store News Industry Hall of Fame for being a convenience store pioneer and innovator.
PriceAdvantage is a highly specialized retail fuel pricing solution for the Convenience Store industry, designed to increase the efficiency and effectiveness of a retailer’s pricing process. PriceAdvantage provides automation for the entire fuel pricing process, from collection of competitive surveys, to efficient and detailed analysis for best price determination, to rapid speed-to-the-street price change execution. The ability to change prices immediately at the POS, fuel pumps and electronic price signs from the centralized headquarters location with one click makes the solution unique in the industry.
About The Spinx Company
With The Spinx Co.’s leading edge technology and exceptional customer service, the company is “Making Life Easier” for customers. Headquartered in Greenville, S.C., Spinx operates 65 convenience retail stores in South Carolina and North Carolina. Founded in 1972 by Stewart Spinks, today the company is the largest privately held gasoline-convenience retailer in South Carolina and is ranked among the top U.S. convenience store chains in the country. For more information, visit www.spinx.com.
About Skyline Products
Skyline Products is the leading developer, manufacturer and provider of fuel pricing and central control software, electronic price displays and dynamic message signs to the fuels, transportation, and government vertical segments in North America. The PriceAdvantage division allows fuel retailers to collect competitive data, determine optimized fuel pricing and automate price changes at the POS, fuel pump and electronic price signs, creating a streamlined closed loop fuel pricing process. Company headquarters are located in Colorado Springs, CO. For more information about Skyline Products please visit www.skylineproducts.com or www.sellmoregas.com.
