by John Keller | Sep 1, 2010 | Fuel Price Management Solutions, Fuel Price Optimization, Fuel Pricing Software, Fuel Pricing Technology, PriceAdvantage
PriceAdvantage 3.3, the latest fuels pricing solution from Skyline Products, includes key new features in direct response to customer input.
A new reporting system enables fuel managers to gain insight into market pricing trends, store profitability, and price history. Version 3.3 provides the first set of 8 reports that will be added to with new versions.
The Roles and Privileges feature controls who has what access to each part of the fuels pricing solution. Version 3.3 ships with a set of predefined best practice roles and privilege sets to provide built-in system security.
With Variable Volume Targets, Fuel Managers can now set volume targets based on month of year and day of week. Version 3.3 can look at past date ranges and show historical variances across months and days of the week, providing insight into typical traffic flow differences throughout the week and year. These variances allow the Fuel Manager to better understand realistic volume performance targets at each location.
by John Keller | Aug 26, 2010 | Customer News, Fuel Price Management, Fuel Pricing Strategy, Industry News
On August 19, 2010 I wrote a blog article discussing how critical it is for Fuel Managers to be diligent about adapting their fuel price management strategy in order to quickly react to the constant changes in their fuel markets. One example I gave is how fuel retailers are adapting fuel rewards programs, allowing them to gain market share without having to adjust their fuel price management strategy.
Today Kroger announced the expansion of their fuel and grocery reward program to 48 Shell stations in the Roanoake Valley and Lynchburg areas of Virginia. Customers accumulate points on their Kroger loyalty cards when they purchase groceries, and points can be used for cash discounts at the pump.
Carl York, a spokesman for Kroger’s mid-Atlantic region office in Roanoke said “Fuel is definitely important to us. We’ve learned that it’s a nice fit with the grocery business. We can drive grocery sales by providing fuel centers. This partnership with Shell allows us to have a bigger footprint to make our fuel promotion more impactful”.
This is another example of the volatility in the fuel market. Fuel Price Managers who compete against Kroger need to carefully monitor the impact this reward strategy has on the market. As we all know, consumers love a fuel bargain, and they will travel out of their way to cash in their discounts. Competing c-stores may need to adjust their fuel prices down to minimize any loss of market share.
by John Keller | Aug 25, 2010 | Fuel Price Management, Fuel Price Optimization, Retail Fuel Margins
According to today’s “This Week In Petroleum” released by the US Energy Information Administration, the U.S. average retail price for regular gasoline decreased over four cents to $2.70 per gallon. That is 8 cents per gallon higher than this time last year. Every region of the country had lower fuel prices except for the Rocky Mountains.
The East Coast price declined four cents to $2.64 per gallon while the Midwest recorded the largest price decrease, more than five cents, to settle at $2.63 per gallon. The Gulf Coast price lost a nickel to average $2.56 per gallon. The West Coast dropped over two cents to $3.08 per gallon, but still remained the highest in the Nation. California prices declined two and a half cents to $3.14 per gallon.
by John Keller | Aug 19, 2010 | Fuel Price Management, Industry News, Retail Fuel Margins
According to the US Energy Information Administration, the U.S. average retail price for regular gasoline decreased almost four cents from last week to $2.75 per gallon but was $0.11 per gallon higher than this time last year. Prices were down throughout the country except for a gain of a cent to $2.80 per gallon in the Rocky Mountains. East Coast and Gulf Coast prices each lost three cents to fall to $2.68 per gallon and $2.61 per gallon, respectively. The Midwest registered the largest price decrease, seven and a half cents, to settle at $2.68 per gallon. The West Coast prices remained the highest in the Nation after dropping less than a penny to average $3.10 per gallon, while California prices declined less than a cent to remain at $3.17 per gallon.
Retail diesel fuel prices fell a penny to $2.98 per gallon, $0.33 per gallon above last year. Price changes were mixed, with the East Coast falling two cents to average $2.98 per gallon. The Midwest and Gulf Coast prices were down by more than a penny to $2.95 per gallon and $2.93 per gallon, respectively. The Rocky Mountain region tallied the largest price increase, moving two cents higher to $3.01 per gallon. West Coast prices were the highest in the country, gaining half a cent to settle at $3.13 per gallon, while California prices increased slightly to $3.19 per gallon.
by John Keller | Aug 19, 2010 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Industry News
The Washington Post published an interesting article about BP and its brand recovery efforts. According to John Kleine, executive director of the BP Amoco Marketers Association, which represents the station owners, BP retail fuel sales are returning to previous levels. After the spill, sales dropped off 40 to 50 percent at some stations on the Gulf Coast. Now in most cases retail fuel sales are down only about 10 percent on the gulf and less than 5 percent in other parts of the country.
Station owners said they began facing angry protests after the spill and turned to BP for help. The company gave them signs and took out print and radio advertisements emphasizing that the stations were locally owned and operated. BP helped the owners at some stations with customer appreciation campaigns including free car washes and free cups of coffee. Corporate staffers flew in to stand in driveways and listen to customers’ concerns, Kleine said.
“Where the owner is known in the community, there is a less significant impact,” Kleine said. “I think BP has to recognize that the local face is really a value to their brand even more so than anybody thought.”
I’m certain that the increased community awareness of local dealer ownership as Mr. Kleine describes is helping BP fuel price sales return to normal. And as news of the gulf spill continues to diminish, and public attention wanes, positive public feelings about BP will return to previous levels. But I believe there’s another key factor in play here. In a previous blog, I explained the rebate incentives BP is passing on to fuel dealers, allowing dealers the opportunity to reposition themselves in their local markets with lower priced fuel, rather than the premium fuel price strategy they previously enjoyed. This Washington Post article doesn’t mention these rebates, but I have to believe the lower fuel prices are making a significant difference.
