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 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 Grant Garrison | Jul 12, 2013 | Fuel Price Management, Fuel Price Management Solutions, Fuel Price Optimization, Fuel Pricing Software
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.
by John Keller | Jun 21, 2013 | Fuel Price Optimization, Industry News, Retail Fuel Margins
OPIS reported today that retail fuel margins across the USA had a slight rebound this week. The average retail fuel margin across the country now stands at $0.199 per gallon, up $0.047 from last week. The increase this week returned the year to date margin to the level of two weeks ago, now at $0.171 per gallon.
The average fuel margins for Q2 also inched up slightly to $0.184 per gallon. The six week average fuel margin is now at $0.172 per gallon, up $0.009 per gallon from last week.
With one week remaining in the quarter, it appears that average fuel margins across the USA for Q2 will be $0.025 higher than the average fuel margins for Q1. That is welcome relief for the retail fuel industry, which needs to operate at approximately $0.15 margins to be at the break-even point.
by John Keller | Jun 14, 2013 | Fuel Price Optimization, Retail Fuel Margins
According to OPIS, the average national US retail fuel margin dropped $0.064 per gallon this week. The drop this week brought the overall retail fuel margin average to $0.152 per gallon, the lowest in three weeks.
The year to date average retail fuel margin is holding steady at $0.170 per gallon. The quarter to date average retail fuel margin is down slightly at $0.183 per gallon. The six week average retail fuel margin is down $.002 per gallon to $0.163 per gallon.
Over the past nine weeks, there have only been two weeks of increases, with the remainder being decreases from the previous week.
There are only two weeks remaining in the quarter, and without drastic increases, average margins will not achieve the level seen at the end of Q1, where average margins were at $0.220 per gallon.
