by John Keller | Apr 1, 2013 | Fuel Price Management, Fuel Pricing Software, Fuel Pricing Technology
To avoid failure in modern retail fuel pricing, retail managers should employ the myriad technological solutions available for fuel pricing optimization. Automating the fuel pricing process using effective fuel pricing software has become a vital practice for transforming fuel operations. Retail fuel managers across the country must start identifying problem areas and rolling out technological solutions.
Shifting internal operations towards an automated fuel pricing solution can save corporate managers many hours of intensive research and labor. Given the vast amount of data flying into pricing systems each day, no one person or even any corporate team can be expected to keep all data up-to-the-minute when making pricing decisions. The potential to automate and normalize fuel pricing processes across multiple locations has never been easier, or more essential.
The capacity for centralized control of fuel pricing is one of the primary reasons for upgrading. In the past, it was necessary for most corporate locations to have a dedicated modem for processing all electronic transactions. The stores themselves had none of the necessary technology, such as back-office PCs, point-of-sale networks and WAN. Due to PCI compliance initiatives, technology at the individual site level has been significantly upgraded within the last few years. Currently, every pricing related device can be controlled directly from headquarters. All pump dispensers and electronic price signs can be updated immediately from a remote location. This shifting of infrastructure has greatly increased efficiencies by allowing price controls to be altered the moment price changes occur, eliminating delays and matching consumer behavior.
These sorts of cloud-based fuel pricing solutions streamline operations and improve reaction time. They significantly improve on traditional technology by offering users comprehensive analytical tools, proficient price management, and easy-to-understand dashboards which monitor site performance. These gas price solutions increase speed-to-the-street and give customers more relevant pricing information, leapfrogging any competitors using outdated systems. Streamlining the pricing process can enable price changes to take merely minutes at a time, delivering customers superior pricing based on current information.
The advances in modern fuel pricing equipment have completely changed the marketplace. Every aspect of fuel pricing within the retail c-store business can now be implemented along the same channels. Prices can be changed, adapted, and controlled all from the head office through the use of modernized, intelligent software solutions. This high level of automation capability guarantees a quick response to competitor behavior, and allows analysts to apply total fuel pricing optimization.
by John Keller | Mar 18, 2013 | Fuel Price Management, Fuel Pricing Strategy, Fuel Pricing Technology
Advances in technology and fuel pricing software have made it much simpler for retail fuel managers to increase speed-with-the-street and react quickly to market changes; they need only take advantage of the myriad technology solutions available. The key to fuel pricing is the ability to make changes quickly. Any company which sees this and then enacts strategies to improve its on-site technology will see its business improve, along with customer satisfaction.
A PriceAdvantage customer, Kocolene Marketing, recently selected our fuel pricing software solution for implementation at all of its stores across Indiana and Kentucky. Automation of the fuel pricing process has given fuel managers the power to change prices, more often. This level of customization enables them to alter prices at stores directly from headquarters. This has transformed fuel operations for each of their stores, and lead to a new standard of internal pricing optimization.
Removing the store manager from the critical path doesn’t interrupt flow, it enhances it. With one click, those with access to up-to-the-minute data can alter prices and meet market conditions. Delays between fluctuations in the market and price changes are a thing of the past. Now managers can capitalize instantly on new conditions, and eliminate any and all execution delays. Technology has freed us from focusing on competitors for pricing data. Mobile access and advanced signage enable us to make decisions based on what’s going on halfway around the world, not just two blocks away anymore.
In fact, one of the more effective fuel pricing tactics today is a technology upgrade, especially in a region where the competition may be dragging its feet. Being the first to upgrade to a new system often creates a perception that your site is right out of the gate on any advances. Relying on outdated equipment to meet the customers’ needs is equivalent to leaving money on the table. Store-by-store protocols based on maintaining high margin-per-gallon won’t suffice to move the business forward. With modern fuel management services enhanced by top-of-the-line equipment, fuel managers can now isolate the connections between price changes and profitability. This lets them see how to shift their pricing strategy, along with enabling them to make changes the moment they wish to.
The function of any business is to make money, and driving revenue in the retail fuel business can often be a difficult game. Consumer behavior and environmental factors are shifting constantly, creating a volatile market where it can be difficult to get a solid foothold. Fortunately, technology is there to help. By reviewing their site’s existing equipment, identifying where upgrades can be made, and implementing new advances in fuel pricing software and technology, c-store retailers can be confident they’re remaining ahead of the curve.
by John Keller | Mar 12, 2013 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Fuel Pricing Technology, Retail Fuel Margins
In their Short-Term Energy Outlook report released today, the US Energy Information Administration issued a revised lower forecast for US gasoline consumption over the next two years. The report includes predictions for US gasoline consumption across each quarter in 2013 and 2014, and in every quarter the revised forecast is .2% to .8% lower than the US EIA predictions from their previous Short-Term Energy Outlook report.
The US EIA reports that fuel volume totals for the years 2012, 2013 and 2014 will remain essentially unchanged, explaining that increased travel will be offset by increased fuel efficiency.
From a fuel price management perspective, the news is not as bad as it could be; while fuel volumes have been in a steady decline for the past eight years, at least total anticipated fuel volumes are not expected to decline over this year and next.
The fuel pricing strategy and fuel price optimization game intensifies each year as c-stores battle for an ever-shrinking fuel volume pie. PriceAdvantage fuel pricing software is the key to optimizing both volumes and margins in this battle.
by John Keller | Mar 11, 2013 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Fuel Pricing Technology
The PriceAdvantage team would like to congratulate The Spinx Company on their successful acquisition of three more c-stores, bringing their total store count to 69.
The Spinx Company has been a PriceAdvantage customer since 2011, with a complete fuel price management solution that encompasses their Gilbarco and VeriFone point of sale systems, Skyline electronic price signs, as well as their PDI ERP system. The fuel managers at The Spinx Company use PriceAdvantage to measure the performance of each store and every market as per the volumes and margins imported from PDI. Fuel managers monitor every competitive price move via the data feed imports from OPIS Radius reports. Fuel managers initiate price changes from the iPad, with PriceAdvantage managing the closed loop fuel price change process, complete with confirmation time stamps recording when each price change is complete.
Says Stewart Spinks, Founder of The Spinx Company and member of the Convenience Store News Hall of Fame, “We couldn’t be happier that PriceAdvantage has replaced our previous fuel pricing solution. It is a superior tool in that it gives us the ability to pull historical data easily, manage multiple price changes per day, and provide a userfriendly interface at the headquarters and store level.”
Congratulations, The Spinx Company. We look forward to our continued long-term partnership for years to come.
by John Keller | Mar 7, 2013 | Fuel Price Management, Fuel Pricing Software, Fuel Pricing Technology
If one thing is consistent in a reading of historical fuel prices, it’s their tendency to change. With constant changes in the market due to shifts in supply and demand for crude, gasoline, heating oil, and natural gas, coupled with ever-evolving government regulations and random natural disasters, staying on top of change becomes a difficult task for any manager. Making sure that fuel pricing software is optimized to monitor and correct for change becomes a vital part of fuel operations management.
The onslaught of pricing data received each day by stations around the country requires that all information be immediately accessible by multiple vendors at different locations. Without guaranteeing the accessibility of this data, the petrol management system used by a corporation becomes useless. When reviewing and selecting fuel pricing software, only accept a solution which offers mobile integration. This technology allows users to access the system from their iPad, Blackberry, or other mobile device and helps fuel analysts to remain a step ahead of the competition when making fuel pricing decisions.
Upgrading on-site technology or equipment is also a crucial part of staying ahead of the competition in modern fuel pricing. Outdated signage or displays can reflect poorly on the business, especially in a metropolitan or high-traffic environment. LED price signs allow managers to make price changes to any location directly from headquarters. Corporate fuel pricing software can be integrated with these signs, allowing for remote management and greater adaptability to sudden changes in the marketplace. These changes not only streamline processes, but generate substantial savings. One PriceAdvantage customer was able to save over $141,000 in annual service maintenance on its signage after upgrading, increasing face time with customers by up to 50 hours annually per store. Technology has become vital to the success of the retail fuel business, and is a tremendous boon to fuel profits.
Fluctuations in the fuel pricing market affect all of us. Retailers, consumers, and agencies suffer when prices shift dramatically overnight. Contractual disputes between vendors and retailers can delay price changes and hurt potential revenue. This has shown itself time and again in historical fuel prices. Therefore, all agencies should establish a reasonable investigative framework that is both transparent and straightforward. Cultivate honest, open relationships with all partners and customers. A lack of reliability means a lack of business, especially in the current economic environment.
The fuel pricing market is a very stormy environment. By implementing these recommendations and ensuring your fuel pricing software is optimized and upgraded, managers can continually adapt to a tumultuous market.
by John Keller | Feb 7, 2013 | Fuel Price Management, Fuel Pricing Strategy, Fuel Pricing Technology, Industry News
According to a new University of Michigan study, new vehicles sold in the US have a record miles per gallon rating, reaching 24.5 mpg. That is a full 1 mpg increase from January 2012, 2 mpg increase from January 2011, and 4 mpg increase from January 2008. A month by month detailed table can be found here.
Last month I wrote a summary of the US Energy Information Agency January report, where the USEIA explained that the primary cause for ongoing decreased fuels consumption in the US is increased auto fuel efficiency. This Michigan study correlates well to that study, and in combination, the two studies help us predict the future of US retail fuel sales volumes – we can expect lower volumes this year than last.
From a fuel pricing strategy standpoint, we can anticipate an increasingly competitive fuels market, as the overall fuels volume pie continues to shrink. The practice of fuel price management is not for the weary, and requires careful attention to monitor margins and volumes store by store, market by market, with a well executed fuel pricing strategies plan.
