by John Keller | May 29, 2014 | Fuel Price Optimization, Fuel Pricing Strategy, PriceAdvantage
Traffic patterns are typical most of the time. We build stores, sell stores and tear down/rebuild stores based on these typical traffic patterns. Traffic is important to us as we price fuel because we can take advantage of changes in traffic flows.
Seeing traffic changes is where we find extra pennies and gallons. Integrating Google Maps with our pricing process gives us the ability to have local eyes on traffic patterns caused by things like concerts, ball games, and road construction.
Take for example a scenario where a large employer on the Southeast side of town closes down. If you don’t live in the area, it may take six months before you learn that you are losing fuel volume to the one station across the street due to the traffic pattern changes. Because the local guy has known that the rush hour is no longer when the volumes are, he has moved up his price during the week still getting business from the locals without much of a volume hit given the reduced overall volume market size. Then he makes the most of the weekend traffic by pulling tourist traffic off the highway with a low price and a billboard sign.
With PriceAdvantage, we can be 600 miles away from a station and feel like a local by leveraging the traffic view. With Web traffic information at our fingertips we can see what’s happening right now, and immediately make pricing adjustments to leverage the patterns we see. In this way we can adjust pricing strategies for the short term, or make immediate pricing exceptions to strategies we have in place, and then execute those optimized prices to the street in time to take fullest advantage of what’s going on in the market right then and there.
by John Keller | May 23, 2014 | Fuel Price Management, Fuel Pricing Technology, Industry News, PriceAdvantage
According to the OPIS report today, the average US retail fuel margin dropped $0.06 per gallon this week to $0.188 per gallon. The year to date average is $0.162 and the Q2 average is $0.169 per gallon. The six week average is $0.178.
Current levels remain above retail fuel margins of last year for the third straight week. Last year at this time the average retail fuel margin was $0.124 per gallon. That’s significant because this holiday weekend traditionally yields a strong bump in retail fuel volumes, and this year the number of Americans travelling 50 miles or more is expected to be 1.5% higher than in 2013.
That means c-stores have the opportunity to show robust fuel sales and profits this month, as long as they manage their retail fuel business wisely, carefully monitoring the competition, optimizing the balance between margin and volumes, and quickly executing the best pricing strategies to the street.
by John Keller | May 23, 2014 | Customer News, Fuel Price Management Solutions, Industry News
Greg Parker, CEO of PriceAdvantage customer Parker’s, presented some entrepreneurship tips when he gave the keynote speech at the Hilton Head Island-Bluffton Chamber of Commerce’s Small Business Awards Luncheon yesterday.
According to Convenience Store Decisions, among his list of tips were two that directly related to PriceAdvantage fuel pricing software.
1) Create a Dashboard for Success. The Parker Cos. “worship data,” he explained. “We believe that success doesn’t just happen. When you make success measurable, you make it achievable.”
- PriceAdvantage provides Parker’s fuel analysts with SNAP Analytics that allows each store to be successful from both a fuel volume and margin perspective. PriceAdvantage is a critical part of enabling Parker’s to achieve their success.
2) Parker’s embraces technology. The company uses technology “to deliver the ultimate customer experience,” said Parker, and it is a critical tool to maximize sales and create a sense of community around the company’s brands.
- The Parker’s PriceAdvantage fuel pricing software solution includes a complete closed loop price changing process between PriceAdvantage, VeriFone Sapphire POS, Skyline electronic price signs, and GasBuddy OpenStore. Through this integrated process, every price change is automated and can be managed from headquarters, even to the point of seamlessly updating GasBuddy with the latest Parker’s pricing.
by John Keller | May 19, 2014 | Fuel Price Management, Fuel Pricing Software, Industry News
According to AAA, the number of Memorial Day vacationers driving 50 miles or more this year will increase 1.5% over last year to the second highest level since 2000. The report defines the Memorial Day travel period as Thursday, May 22 to Monday, May 26.
“As the economy continues to improve at a slow and steady pace consumer spending, disposable income, consumer confidence and the employment outlook are trending up which is welcomed news for the travel industry,” said Marshall L. Doney, AAA Chief Operating Officer.
There is a free AAA Mobile app for iPhone, iPad and Android where GPS navigation helps travelers map a route, find current gas prices and discounts, book a hotel, and access AAA roadside assistance. The gas prices displayed on the app are supplied by OPIS.
What does this mean from a fuel price management perspective? On a nationwide scale, fuel volumes should be higher than last year for the five day period of May 22 to May 26. If current retail fuel margin levels remain the same, the average retail fuel margin will be approximately $0.12 per gallon higher than last year over the Memorial Day weekend. That means we have the potential for significant profit improvements over last year for these five days.
It also means the savvy fuel retailer can make the most of this weekend by making sure the latest fuel prices are displayed on the gas price apps fed by OPIS and GasBuddy. PriceAdvantage customers such as Rutter’s and Parker’s will be using their integrations to make sure their prices are displayed prominently to the Memorial Day travelers.
by John Keller | May 16, 2014 | Fuel Pricing Strategy, Fuel Software, Industry News, Retail Fuel Margins
The OPIS report today showed the average retail fuel margin across the US improved for the fourth straight week, rising $0.037 per gallon to $0.248 per gallon.
The year to date average broke $0.16 per gallon for the first time since March 7, rising $0.005 to reach $0.161 per gallon. The quarter to date average broke $0.16 per gallon for the first time this quarter, hitting $0.166 per gallon. The six week average now sits at $0.168 per gallon, the highest level since February 21 of this year.
This week last year, the retail fuel margin average was $0.123 per gallon, a level where it remained the following week. That means the average retail fuel margin is now twice that of last year.
These are good times for the fuel retailer, where margins are gaining strength heading into Memorial Day weekend with its historical increase of volumes. But that doesn’t mean the fuel analyst can rest easy. There are still pennies to be gained and lost, and as volumes increase to peak levels during the upcoming vacation season, every strategic decision is amplified. You can’t manage what you can’t measure. Implementing a fuel price management solution like PriceAdvantage where you can quickly measure and analyze the wins and losses of the day, and then adjust strategies quickly, is critical to making the highest profits of the season.
