by John Keller | Jul 19, 2013 | Fuel Price Management Solutions, Fuel Price Optimization, Fuel Pricing Software, Fuel Pricing Strategy
The ability to make one-click price changes at all retail fuels locations is critical when optimizing fuel prices because it reduces the potential for human keying errors, streamlines the overall fuel pricing process, and ensures maximum fuel profitability. Retail fuel managers frequently face the frustration of not being able to react quickly enough to changing market conditions. Interference, be it from technology or the environment, can hold back price changes, and prevent the optimized prices from reaching the street. By the time the prices do change, it may be too late, as the competition has already leapfrogged to a new price based on newer market fluctuations.
A centralized process for managing fuel price changes to all locations removes the store manager from the loop and increases speed-to-the-street. Tracking and analyzing fuel prices can now be done by a fuel analyst at headquarters giving store managers more face time to interact with customers. By leveraging technology and improving traditional company processes, these overburdened store managers can be freed up to oversee tasks within the store, more effectively handle store operations, and provide better customer service.
The ability to automate fuel price changes at the POS, fuel pumps, and electronic price displays is one key differentiator between the patented PriceAdvantage SMART fuel pricing software solution and other solutions in the industry. The ability to immediately execute price changes within a region, location, or market means you have the right strategy prices in place at the right time to offset your competition. Traditional fuel pricing models relay fuel price changes gradually from one channel to another, allowing for interruptions, miscommunication, human error, and delay after delay. Removing store managers from the critical path eliminates these delays by creating a direct channel from pricing to implementation.
The patented PriceAdvantage SMART fuel price management solution provides analysis of the competitive landscape and a complete picture of the optimal prices in each market. Then fuel managers can use PriceAdvantage to automate the entire fuel price change execution process, including price change confirmation at the POS, sign and pumps, to maximize overall fuel profitability. PriceAdvantage provides a complete picture of the playing field, allowing fuel managers to attain true fuels price optimization day in and day out.
by John Keller | Jul 19, 2013 | Fuel Price Optimization, Industry News, Retail Fuel Margins
According to the latest OPIS report, the average retail fuel margins across the USA took a nosedive this week, dropping another $0.07 per gallon to the lowest levels since February of this year.
Current average US retail fuel margins now stand at $0.100 per gallon, which is $0.20 cents lower than just two weeks ago. Retail fuel margins haven’t been this low since February 22. Year to date averages are now at $0.177 per gallon while the average so far in Q2 stands at $0.136 per gallon. The six week average is $0.200 per gallon.
This is the margin drop we anticipated – when wholesale prices increase quickly, retail prices simply cannot keep up due to consumer behavior, and fuel margins decrease. Retailers will have to make the most of their fuel software to carefully balance their volumes and margins to optimize profits as wholesale prices will inevitably stabilize and then dip lower, providing the opportunity for fuel retailers to make up for lost margins in the coming months.
by John Keller | Jul 16, 2013 | Customer News
Skyline Products is proud to congratulate Stan Sheetz, president and CEO of long-time PriceAdvantage customer Sheetz Inc. for being inducted into the CS News Hall of Fame. The CS News Hall of Fame has been recognizing convenience store innovators and pioneers like Stan Sheetz since 1987. Sheetz operates over 450 stores and is included in the Fortune 100 list of private companies. Sheetz has also been named one of the best places to work in Pennsylvania, Ohio, Virginia and North Carolina.
Sheetz has been a PriceAdvantage customer since 2009. PriceAdvantage allows Sheetz to save over $140,000 each year and give their store managers an extra 50 hours of customer face time annually.
Stan Sheetz joins fellow PriceAdvantage customer Stewart Spinks of the Spinx Company in the CS News Hall of Fame.
by John Keller | Jul 13, 2013 | Fuel Price Optimization, Industry News, Retail Fuel Margins
OPIS reported this week that average retail fuel margins across the USA have fallen dramatically. The latest numbers reflect an average retail fuel margin of $0.171 per gallon which is a 40% drop since last week. The $0.131 per gallon decrease in average retail fuel margins is the largest drop in 52 weeks.
The year to date average retail fuel margin remains steady from last week at $0.180 per gallon and the six week average retail fuel margin dipped slightly to $0.219.
Current predictions are that retail fuel prices are going to increase in the coming weeks. That will put additional pressure on retail fuel margins, so I don’t expect the OPIS report next week to bring any good news for fuel retailers.
by John Keller | Jul 5, 2013 | Fuel Pricing Strategy, Industry News, Retail Fuel Margins
According to OPIS, retail fuel margins across the USA are now at the highest average levels of the year.
For the third consecutive week, retail fuel margins increased, this time up $0.028 per gallon to an average of $0.302 per gallon. The increase this week bumped the year to date average retail fuel margin to $0.180 per gallon.
For the past six weeks, the average retail fuel margin stands at $0.227 per gallon.
Oil prices have been on the rise however, so it stands to reason that wholesale prices may soon inch up, putting pressure on retail fuel margins. From a fuel management perspective, it makes sense to use profits from these margins to invest in fuel software in order to keep a close watch on the changing market conditions, and optimize fuels prices to balance margins and volumes.
