by John Keller | Sep 18, 2013 | Uncategorized
Mobile technology hasn’t just increased the ease with which we travel, check the news, and plan our day. Mobile technology has revolutionized fuel pricing software. In fact, it’s safe to say that fuel pricing software makes for a highly compelling case for why to use mobile technology at all. Mobile fuel pricing software accelerates the communication of key information necessary to gain insight into the latest, most accurate market data, allowing fuels managers to quickly enact changes anywhere and anytime, and thereby optimize profits.
Cloud computing and mobile technology give retail fuels managers greater control over their fuels pricing by consolidating resources and making information more readily accessible. Mobile fuels pricing integrates data from disparate systems into one simple yet comprehensive display, giving managers all the information they need to make strategic pricing decisions, and then act on them. The PriceAdvantage mobile capability allows managers to view this information in an easy to use interface from the Smartphone, iPad, or other mobile device. Managers have this information at their fingertips 24/7, increasing the speed at which they can make informed decisions. PriceAdvantage gives managers complete control of the fuel pricing process through mobile technology, day or night.
Aside from reducing communication headaches by streamlining the price change process, the PriceAdvantage mobile fuel pricing software gives fuels managers a comprehensive picture of what the competition is doing. It returns competitor price changes and surveys as soon as they are reported, keeping managers up-to-date with market shifts. PriceAdvantage also offers advanced analysis views which allow the fuels manager to slice and dice the market data in a meaningful way and answer key questions.
The advanced PriceAdvantage mobile solution provides a superior way to manage the enterprise proactively rather than simply conforming to trends. PriceAdvantage users can set the standard in their region with increased speed-to-the-street. By giving managers the tools to understand the pricing environment, the PriceAdvantage mobile application removes all the waste, delays, and mis-communication from the process. This up-to-date information helps fuels managers anticipate the next move of the competition based on past competitor behavior and current margins, so all pricing decisions are strategic. This mobile capability allows managers to stay connected and respond to market changes at home, in transit, or even while in the stands at a child’s soccer game.
Another way mobile technology increases the level of control is by sending automatic alerts with every price change confirmation or delay. Fuel managers can set alerts within the system to inform them whenever surveys are overdue or price changes are late. That makes it easy to see when and where any problems occurred, and quickly react to correct the delay at its source. Rather than forcing managers to sift through data to find the issue, PriceAdvantage mobile technology identifies the location of the pain point to make it easy to determine how to correct it.
Fuel pricing software is a key component of the modern retail fuels marketplace, and combining it with mobile solutions technology allows any fuels manager to stay ahead of the curve and ahead of the competition.
by John Keller | Sep 18, 2013 | Industry News, Retail Fuel Margins
The latest OPIS report shows average retail fuels margins across the US have recovered the losses of recent weeks and now stand at $0.211 per gallon. That’s a $0.04 gain this week. Retail fuels margins are higher than they have been in four weeks and are nearly back to the levels of August 16.
Year to date retail fuel margin averages are up slightly to $0.182 per gallon and the average Q2 retail fuel margins are at $0.198 per gallon. The six week average is essentially unchanged at $0.202 per gallon.
Historically this is the time of year when costs start to drop as we transition to the winter blends, offering opportunities for increased fuel margins across the country.
by John Keller | Sep 16, 2013 | Fuel Price Management, Fuel Pricing Software
Fifteen months ago I wrote an article about natural disasters and fuel price management because the city of our home office was experiencing terrible forest fires. Since then another major section of the Colorado Springs metropolitan area suffered a forest fire, even larger than the fire of 2012.
I write this blog article to revisit the topic because the state of Colorado is now going through some of the worst flooding in its history, with many properties devastated, and lives lost.
From a fuels price management perspective, these Colorado floods are a significant disruption to the business of fuels management. Roads are difficult to travel, making it a problem to deliver fuel loads, and difficult for customers to travel. Demand for fuels in affected areas will unquestionably be low and possibly next to nothing. Some stores may even have to close temporarily.
In the future when we refer back to these days, it’s critical that your fuel software has the ability to annotate the special circumstances surrounding these business disruptions. PriceAdvantage provides an easy interface to add notes to the volume graphs for each day when the disruption can be recorded for future reference. Then in comparison analysis views, it’s easy to recall the reason why there are such glaring anomalies in fuels volumes.
by John Keller | Sep 13, 2013 | Customer News
When Valero announced their intentions to spin off their retail businesses, the primary reason was to increase shareholder value.
On September 12, the now spun off retail business CST Brands announced their intention to offer cash dividends to stock holders. Initially the dividends are set at $.0625 per share.
After opening at a stock price of $27.50 per share on May 2, CST Brands stock is now trading in the $30 per share range.
CST Brands has been using PriceAdvantage as their retail fuel software at all their US stores since 2012.
by John Keller | Sep 10, 2013 | Industry News, Retail Fuel Margins
The latest OPIS numbers show a $0.002 increase in US average retail fuel margins over last week. The average retail fuel margins across the US are now at $0.171 per gallon. The year to date national average remains at $0.181 per gallon. The Q2 average dipped to $0.196 per gallon. The six week average remained the same at $0.203 per gallon.
The current retail fuel margins are $0.028 higher than last year at this time.
Recently the crude prices have stopped their rising, so hopes are up that margins can remain strong as we finish Q2.
by John Keller | Sep 10, 2013 | Fuel Price Management, Fuel Pricing Strategy, Industry News
Both the US Energy Information Administration and the University of Michigan continue to release information about the downward trend of US fuels volumes. The conclusions have a direct impact on the c-store retail fuels marketer because both the US EIA report and the University of Michigan study reveal a continued decrease in the overall retail fuels market size.
The US EIA reports that in 2012, US drivers consumed 50,000 barrels a day less gasoline than in 2011. And in the first half of 2013, US drivers have cut back again, consuming 50,000 barrels a day less gasoline than in 2012. While the US economy continues to improve in 2013, the improved fuel efficiency of vehicles on the US roads more than offsets any expected increase in fuels volume consumption.
According to the University of Michigan study, the average fuel efficiency of new vehicles sold in the US is now at an all-time high, reaching 24.9 miles per gallon in August. The average fuel economy of 2013 year model vehicles that were sold from October 2012 through August was 24.7 mpg. That makes for an increase of 1.2 miles per gallon above the 2012 year model vehicles. The average fuel economy of new vehicles has increased 19.7% since 2008.
How does this pertain to fuel management? While markets will vary based on population shifts, it is critical that fuel marketers continue to compare their current fuel volumes to six week trends, and year to date trends to last year. Fuel software must provide rich analysis that provides answers quickly so fuel pricing strategies can be continually adjusted. Our customers agree, PriceAdvantage analytics are the best in the business.
by John Keller | Aug 30, 2013 | Fuel Price Management, Fuel Pricing Strategy, Industry News, Retail Fuel Margins
According to today’s OPIS report, retail fuel margin averages across the United States fell for the second straight week. This week retail fuel margins decreased $0.018 per gallon and now stand at $0.169 per gallon.
The year to date average dipped slightly to $0.181 per gallon. The Q2 average also slipped, to an average margin of $0.199 per gallon. The six week average stands at $0.203 per gallon and the average margin since Memorial Day is $0.204.
Retail margins this year are $0.025 per gallon higher than this time last year.
With the Syrian conflict in all the news and the rising cost of crude, there was fear of tanking retail fuel margins heading into the Labor Day holiday, but it looks like the c-store retail industry will be able to survive this weekend with reasonable margins and head into the next season with a solid year to date margin average.
by John Keller | Aug 30, 2013 | Customer News, Fuel Price Management Solutions, Industry News
For eight years, CSNews has been recognizing the most innovative convenience store chains in the industry with the annual CSNews design awards. This year these CSNews awards include four PriceAdvantage customers: CST Brands, Cruizers, High’s, and Parker’s.
The CST Brands store in Harris County Texas won Best Interior Design. CST Brands (formerly known as Valero) uses PriceAdvantage as their retail fuel software for all their company-owned stores across the United States. The CST Brands fuel price management solution includes fuel price optimization, an integration with GasBuddy OpenStore, and roundtrip price change confirmation to the VeriFone POS and Skyline electronic price signs.
Cruizers won Honorable Mention for a remodel in Raleigh North Carolina. The Cruizers implementation of PriceAdvantage is in the cloud and includes roundtrip price change confirmation to the Gilbarco Passport POS.
High’s won Best Mid-Budget Remodel for their project completed in Edgewater Maryland. High’s uses PriceAdvantage as their retail fuel software across all their stores with complete price change confirmation to the VeriFone and NCR Radiant POS systems.
Parker’s won Best Fountain Presentation for their store in Garden City Georgia. The Parker’s implementation of PriceAdvantage fuel software is also in the cloud, and includes roundtrip price change confirmation to the VeriFone POS and Skyline electronic price signs. The Parker’s solution also includes an integration to GasBuddy OpenStore.
All four of these PriceAdvantage award winners have their fuel price software solution integrated with PDI.
The PriceAdvantage team is proud to have such industry innovators as partners, and we’d like to offer our congratulations to all of them.
by John Keller | Aug 29, 2013 | Fuel Pricing Strategy, Industry News
According to a recent CNBC article, next year we can expect to see a lot more diesel cars on the roads across the US. The 2014 US model year should have double the selection of previous years, with 40 diesel models on the market by the end of 2014. Diesel SUV’s are likely to see the biggest increase in sales.
For a long while, Volkswagen has had the majority of diesel models in the US. But GM is planning to offer new diesel models, as is Chrysler, Mazda, Nissan and Audi. Some experts predict that by 2018 diesel vehicle sales could represent 10% of all new vehicle sales.
Diesel technology typically boosts mileage by 30%, helping auto manufacturers meet federal mileage regulations. These regulations require a combined 39 mpg fuel mileage rating in the window across their model offerings by 2025.
Many diesel models can go 600 to 800 miles on a single tank, dramatically altering the behavior of gasoline consumers who stop to fill up twice as often as these models.
What does this mean from a fuel price management perspective? First, it may be a good time to start planning to add diesel to your product offering if you don’t already offer it, especially if your stores are in an area where SUV’s and trucks are popular. Second, monitor the ratio of diesel fuel sales to gasoline fuel sales from a historical perspective, and see if the current sales trends are tipping the balance in the favor of Diesel. If it hasn’t started yet, depending on your markets, you’re likely to see the shift over the next five years and beyond.
by John Keller | Aug 28, 2013 | Fuel Price Management Solutions, Fuel Pricing Software, Industry News
According to AAA, there will be a 4.3% increase in Americans driving 50 miles or more from home this Labor Day holiday. That means between Thursday and Monday we can expect to see more travelers than any year since the recession. The number of Americans driving 50 miles or more is expected to reach 29.2 million, up from 28 million last year.
From a fuel price management perspective, when comparing this year’s numbers to last year’s, it’s important to monitor fuel volumes compared to the same days of week last year, not same date, in order to make sure you are getting your share of the increased pie this weekend. Strategies may including sitting with slightly higher margins in order to make the most of the weekend, in the face of increased traffic. Or they may include going for volume to make up for lost opportunities earlier in the year.
The key takeaway is to be prepared with best-in-class fuel pricing software to make quick pricing adjustments as needed, in order to maximize the great opportunity this weekend provides. Oh, and on a personal note, it’s best to have access to this fuel pricing software insight from a mobile device so you can have some fun this weekend, too.
