by John Keller | Sep 26, 2011 | Fuel Price Management, Fuel Price Management Solutions, Fuel Pricing Strategy, Industry News
Convenience Store News reports that three New Jersey gas stations are being charged with illegal price changes after Hurricane Irene. The stations are accused of raising their fuel prices multiple times in one day which is illegal in the state of New Jersey, and could result in fines of $1500 each. The State Office of Weights and Measures also investigated the gas stations for raising prices more than 10%, what New Jersey calls price gouging.
Fuel Pricing solutions such as PriceAdvantage can help in situations like this in three ways:
- Keep control of fuel price changes at Headquarters. The Fuel Price Management solution PriceAdvantage can be configured to remove the Store Manager from the fuel price change process, and initiate all fuel price changes only at headquarters. This means no unauthorized fuel price changes starting at the store.
- Set price change thresholds. PriceAdvantage allows price changes to be kept below the set threshold, meaning a price change can never be more than the set percentage over the current price. In this case, if the threshold is set to 9%, any price change of more than 9% would be rejected as unauthorized.
- Reduce audit time. PriceAdvantage provides a series of reports making it easy to show auditors the price change history at each store. That means when an audit is inevitable, the time it takes to provide the needed information is reduced to minutes.
These New Jersey stores did not have PriceAdvantage in place, but if they had, their troubles would have likely been reduced, and possibly eliminated entirely.
The original NACS article is here.
by John Keller | Sep 22, 2011 | Fuel Price Management Solutions, Industry News, PriceAdvantage
Employee error led a c-store to sell Premium fuel at $2.65, which was $1 less than the correct price. The lost profits were caused by an employee entering the wrong price into the RaceWay fuel price management system. According to the News & Messenger, and insidenova.com, the Manassas Virginia Raceway station was unable to quantify exactly how much money RaceWay lost during the time of the incorrect price. But nearby competitors had the Premium fuel price at $3.68 and $3.71, more than $1 higher.
In the RaceWay fuel pricing process, corporate officials determine prices for the day and communicate those prices to the store managers. The store managers then manually enter the prices for each grade into the store computer. As an alternative to the RaceWay system, the PriceAdvantage Fuel Price Management solution provides a way to automatically set store prices based on what fuel analysts at the headquarters office determine is the optimized fuel prices for the day. By removing the store managers from the fuel pricing process, PriceAdvantage removes the chance for the kind of human error experienced by the RaceWay store.
The original news story may be found here.
by John Keller | Sep 9, 2011 | Industry News, PriceAdvantage
In the July / August 2011 issue of National Petroleum News, the cover story features PriceAdvantage in an article titled “Price Modeling: Changing Attitudes Towards Automated Pricing” that can be found here. This article discusses how software can be used to give fuel managers an edge in their pricing strategies and in turn, make more money. The two featured products are KSS PriceNet and Skyline Products PriceAdvantage. The two PriceAdvantage customer interviews are with CEFCO and Sheetz.
by John Keller | Sep 8, 2011 | Customer News, Fuel Price Management Solutions, Industry News, PriceAdvantage
At The Spinx Company, OPIS Radius reports are providing real-time competitive price imports that drive new fuel pricing strategy changes for 70+ stores. While Spinx Store Managers continue to submit their daily competitor surveys first thing each morning, the OPIS Radius reports provide additional competitive intelligence, allowing the Spinx Fuel Analysts to quickly respond to competitor moves throughout the day. The OPIS Radius reports provide data that Fuel Analysts can view in the PriceAdvantage dashboard, the screen in the software from which the Fuel Analysts initiate fuel price changes to the store. That dashboard is also where Fuel Analysts can see the confirmation time and date stamp of when the price change was automatically completed at the POS, sign and pump. The combination of PriceAdvantage and the OPIS Radius reports allow Spinx to get the right price to the right store at the right time faster than their previous email and corporate intranet system.
The Spinx Company formerly relied on MPSI, recently acquired by KSS, for their fuel price management solution. It was the ability to view OPIS Radius information in a PriceAdvantage consolidated view, along with volume, price history and current margin, as well as the roundtrip fuel price management automated closed loop process, that convinced the Spinx Company to implement PriceAdvantage at all their stores.
by John Keller | Aug 10, 2011 | Fuel Price Management, Fuel Price Management Solutions, Fuel Pricing Strategy, Industry News
Fuel Price Managers should base their fuel pricing strategies on the general consensus that retail gas prices will continue to drop through the rest of 2011.
USA Today picked up a story from the New York Times, proclaiming that gasoline prices are sure to continue to drop. The article predicts that next month, the national average for Regular Unleaded could drop to $3.25/gallon. That would be over $.40/gallon less than today’s national average. A spokesman from NUS Consulting, the often quoted specialist firm in energy sourcing, risk management and sustainability, was quoted as predicting that crude will fall from today’s price of $82 to between $55 and $60 before finishing the year at $70.
UPDATE 8/12/11 The Los Angeles Times published an article saying “motorists should see pump prices drop as much as 50 cents a gallon over the next several weeks…”.
Today’s US Energy Information Administration Short-Term Energy Outlook projects Unleaded fuel price national averages to drop $.09/gallon in the 3rd quarter of this year and reach $3.58/gallon; predictions for the 4th quarter include an additional $.14/gallon drop to reach $3.44/gallon. That’s about $.06/gallon lower than what the US EIA published last month. On August 8th, the US EIA announced the national average for Unleaded was $3.67/gallon, a $.04 drop from the previous week.
Fuel Price Management strategies should include consumer expectations that fuel prices will fall.
by John Keller | Aug 8, 2011 | Industry News
In today’s US Energy Information Adminstration weekly fuel price report, the USEIA revealed a $.04 drop for the national average price of Unleaded Regular fuel. The US national average retail fuel price of unleaded gasoline now sits at $3.67/gallon, a gallon of midgrade dropped to $3.79, and a gallon of premium dropped to $3.92.
All regional areas saw fuel price decreases except for the Rocky Mountains, who saw a $.01 increase. The Gulf Coast and the Midwest each saw a $.05 decrease.
As for individual states, Minnesota had the largest fuel price decrease of the week, where prices lowered $.09/gallon for unleaded, with an average price of $3.73/gallon. All states now have Unleaded averages under $4.00 for the first time in two weeks.
The highest average price in the nation for Unleaded continues to be in New York, at $3.99/gallon. In Chicago, a gallon of Unleaded is priced the highest in any major city, at $3.96 per gallon which is $.05 less than last week.