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 8, 2013 | Customer News, Fuel Price Management Solutions, Fuel Pricing Software, Fuel Pricing Strategy
Congratulations to Scott Hartman for his induction into the PCATS Hall of Fame, from all of us at the PriceAdvantage team. Scott has always been a thought leader in the c-store industry, and his visionary guidance has made a big impact on making PriceAdvantage the industry-leading fuel pricing software that it is today.
Scott’s leadership enabled Rutter’s to first roll out PriceAdvantage to all their stores beginning in early 2011. The Rutter’s implementation of PriceAdvantage included a complete command and control solution that included their Radiant (now under the NCR corporate umbrella) POS systems, as well as their Skyline electronic price signs.
Then in the latter half of 2011, Scott’s vision extended the Rutter’s PriceAdvantage implementation to include a GasBuddy integration. Scott recognized that the world of retail fuel price management includes virtual as well as physical signage. Scott led Rutter’s to incorporate their retail fuel price marketing into their overall retail fuel price management strategy by having PriceAdvantage automatically push fuel price updates to GasBuddy once PriceAdvantage finished the fuel price changes. This solution insures Rutter’s always has the most accurate and up-to-date prices on the GasBuddy sites.
What’s next for Scott’s vision for PriceAdvantage? Now that PriceAdvantage can push fuel price updates to OPIS, just like to GasBuddy, Rutter’s will be able to make sure all sites receiving fuel pricing information from OPIS will also have the latest and most accurate Rutter’s fuel prices. With the PriceAdvantage integration to OPIS, Rutter’s will be able to automatically push prices out to AAA, Garmin, and MapQuest, as well as a growing number of sites partnering with OPIS.
Thanks again, Scott. We couldn’t have done it without you. And we look forward to a continued strong partnership with Rutter’s for years to come.
by John Keller | Mar 8, 2013 | Fuel Price Management, Fuel Pricing Strategy, Retail Fuel Margins
An NBC News article published in their Online Business section discusses the addition of Propane to the list of alternative fuels being considered for vehicle retrofitting.
The home satellite provider DISH Network Corp has announced they will run 200 of their trucks on Propane. The DISH Network Corp expects a 55 percent reduction in fuel costs for the Ford E-250 cargo vans that will run on propane – amounting to a saving of about $2,500 per vehicle per year. There are more than 13 million vehicles using Propane worldwide but Propane is a niche product in the United States.
But over the past 3-4 years, the wholesale cost of Propane has dropped in half, and Propane production has increased nearly 50%. The cost of adding a Propane fueling station is less than $50,000 and takes less than one day. That makes it much less of a commitment than adding CNG or LPG fueling stations.
According to the US EIA map of the alternative fuel stations in the lower 48 United States, the number of Propane stations is second only to Electric, and just ahead of E85 stations. But while Electric stations are concentrated in the urban areas on the coasts and Great Lakes, Propane stations are more widely distributed across the whole US, including Texas and the Mid-west.
As we monitor the growth of alternative fuels in the retail fuel management industry, retail fuel pricing managers would be wise to consider adding Propane to their product portfolio as a market differentiator, and an opportunity for high fuel margins.
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 | Mar 1, 2013 | Fuel Price Management, Fuel Pricing Strategy, Retail Fuel Margins
The latest OPIS report showed retail fuel margins jumped $0.062 for the week, the largest weekly gain since late October 2012. The average retail margin throughout the US now stands at $0.164 per gallon.
The gain this week brings the retail fuel margin for the month of February to $0.096 per gallon. The average US fuel margin for all of 2013 now stands at $0.131 per gallon.
This week’s number is a welcome relief to the fuel pricing manager and we can only hope the roughest times for this season are behind us.
by John Keller | Feb 23, 2013 | Fuel Price Management, Industry News
In their weekly report, OPIS revealed another loss in retail fuel margins. This week retail fuel margins lost $0.02 per gallon across the US to settle at $0.102 per gallon.
The loss this week brings the year to date average down to $0.127 per gallon. The average US fuel margin for February is likely to be nearly $0.02 lower than January.
With these numbers it’s clear to see that despite all the bad press around rapidly fuel prices this year, it is not the c-store industry that is making money.
