- 05 Jul
Retail Fuel Margins Dropping
Today we had an interesting conversation with a CEO about what benefits he gets out of using PriceAdvantage as his retail fuel price management solution. He listed two specific interwoven benefits.
He described what it was like before PriceAdvantage, where he would send fuel price changes to the stores, and the store personnel would assure him they had implemented the price changes. Then he would drive by his stores and see they still displayed the old prices because the store folks hadn’t in fact changed the prices. Then there would be hours spent following up with the locations to follow through with the price changes. As you can imagine, this was a source of great frustration because his stores did not have the right prices at the street, and there were a lot of hours wasted on operations that would be better spent on strategic thinking.
Now with PriceAdvantage, he says he knows the price change has been completed when his Fuels Manager receives the automated successful price change confirmation email. In most cases, the Store Manager is removed from the fuel price change process completely because his company has integrated PriceAdvantage with the VeriFone POS. And in those cases where there is an operational problem, the Fuels Manager receives an automated email notification of a delayed price change, allowing her to follow up on an exception basis. That results in a savings of upwards of two hours each day.
So the PriceAdvantage benefits for this CEO are two-fold: confidence that based on their gasoline pricing strategy, the right retail price is at the right store at the right time, and hours gained each day in the operational fuel price change process.