The Parker Companies Increase Margins and Build Brand
Client: The Parker Companies
Location: Georgia and South Carolina
Number of Stores: 31
The Parker Companies provides a premium shopping experience in a safe, friendly and convenient environment while selling guaranteed fuels and quality products at competitive prices.
Parker’s recognized that in order to effectively compete in the fuel market, they needed to gain real-time insight into margins and volumes as well as automate their fuel-pricing processes. Using PriceAdvantage, they can now efficiently:
Complete competitive price audits
Review proposed pricing against business rules
Run “what if” scenarios with an economic model
Push prices to the POS, pumps, and electronic price sign
Receive price change confirmations from all 36 stores in a matter of minutes
The added bonus – it can be done using any mobile device!
“PriceAdvantage has made a real impact on our margins and volume. Definitely worth the investment.”
Like many companies, Parker’s needed to move from a manual pricing process based on spreadsheets, drive-by price shopping, and phone calls/text/emails to notify stores of new prices to a streamlined, automated process. They knew a software solution would not only save time with manual processes, but it would provide deeper analytics, more control, and faster response to market and competitor pricing.
Rather than relying solely on economic algorithms for price change proposals, PriceAdvantage lets the Parker’s team balance the importance of economic models with their intimate knowledge of the competitive landscape to establish recommended prices. This blend of art and science provides a comprehensive view of their pricing options. “The optimization is consistently reliable and provides great accuracy,” says Bush.
PriceAdvantage’s business rules function allows Parker’s to ‘set and forget’ business-wide and site-specific strategies. Bush reports that he particularly likes the ability to set parameters (such as preferred cents above/below competition) for each store and revise them to accommodate for changing competition, construction, weather, disruption of normal traffic patterns, and other situations that can impact fuel sales. “To call them “robust” only scratches the surface,” he commented.
PriceAdvantage presents a single, comprehensive view that shows the economic model price, street prices, and the new proposed price, side-by-side. This allows Bush to quickly approve prices for those locations that fall within their established detailed business rules, review the exceptions, and push new prices to the street all in a matter of minutes.
Bush can now perform virtually all of his pricing functions from his mobile phone. Where in the past he was often tethered to the office or his laptop, Bush estimates that he now completes about 70% of all actions from his iPhone, including setting administrative options and passwords. Additionally, he receives alerts regarding volumes, margin targets, and other criteria on his phone.
“We want customers to consistently look to us as the low cost leader, so that it becomes habitual to look to Parker’s,” says Bush. PriceAdvantage helps Parker’s to react quickly to market changes to build customer ‘stickiness’ to achieve that goal.
Bush credits the people at Price Advantage as an important reason for Parker’s success. He states, “We are a PARTNER with PriceAdvantage, not just a customer. The PriceAdvantage team takes pride in what they do, always responds in a timely manner, understands and cares about our issues, and makes changes immediately. Everybody is fantastic. They are invested in our success.”
Jeff Bush, Director of Fuel Management
"We are strong supporters of PriceAdvantage. Our increased profits and reduction in manual processes more than justifies the software investment, several times over. We also appreciate the excellent customer service that backs it all up, and recommend it to others."