- 12 Jul
4 Strategies for Fuel Pricing Command and Control
The key to an effective fuel price management system is total integration between all channels which gives managers the ability to set optimal prices for each region with maximum ease. To enable this premium level of command and control, retail fuels companies need to follow several strategies for productive price management. As a quick reference guide, the fuel price management experts at PriceAdvantage have compiled a list of 4 strategies for fuel price command and control.
1. Mobile Integration
Relying on outdated technology to keep track of price changes is an unsustainable practice. It’s worth making an investment in new technology considering the degree of additional control and flexibility it provides. Mobile technology, such as Smartphones or tablets, allows fuel managers to enact immediate price changes from anywhere. Mobile integration ensures that fuel managers will receive automatic alerts when surveys are overdue, price changes are late, or whenever any channel interruptions occur. By integrating their fuel pricing software with mobile technology, fuel managers can save time and stay informed of competitor price moves.
2. Tracking with Technology
Using fuel pricing software to manage and optimize fuel pricing is straightforward when managers apply professional software. Technology can provide complex, actionable outputs from records on competitor pricing history, c-store price history, historical fuel costs, and fuel volume history and targets. It’s not enough to make sure software is accessible from anywhere. The right fuel pricing tool will also provide automated tracking for the entire delivery cycle. A fuel price management system should track each and every process from collection of surveys to price changes, showing users where opportunity losses are occurring, and increasing speed-to-the-street.
3. Forecasting trends
Forecasting trends in the fuel pricing market shouldn’t be based on hunches, but on precise economic models developed by industry experts. An efficient model should apply top-notch analytics based on historical fuel prices, and make an educated evaluation of arising patterns from this past competitive landscape. Forecast modeling places control in the hands of those who understand the data best.
4. Pricing Optimization
An integration of the three strategies listed above will lead to total fuel pricing optimization. Continual automated monitoring, notifications of service interruptions, technology integration, well-crafted pricing models and daily confirmation alerts are vital for an efficient fuel price management system. However, these tools become less effective if they do not allow the analyst to obtain results based on a selected period of time. Analysis and optimization economic models must provide results based on varying historical references in order to accommodate market changes caused by seasonal demographics, and varying competitor influences. Always apply the latest technological solutions, with total report customization control, to gain the greatest advantage over the competition.
These are four indispensable strategies available to managers for maximizing fuel pricing command and control. By incorporating this type of approach into your fuel operations and continually seeking new upgrades to internal processes, you can be certain that your fuel price management system is keeping you ahead of the competition.