Dynamic, Day-Part Fuel Pricing Strategies
The execution of scheduled fuel price changes during set windows of time throughout the day.
In January 2017, a group of fuel marketing industry experts conducted research into the emerging trend of scheduled day-part pricing strategies. More than 130 global fuel marketers provided valuable insight into how they are – or are not – executing this strategic pricing strategy.
What is day-part pricing? It is the execution of scheduled fuel price changes during set windows of time throughout the day, sometimes referred to as dynamic pricing. For example, retailers are learning how to maximize margins or drive volumes based on specific day parts. Some retailers might focus on capture margins during the morning while focusing on holding volumes in the afternoon. Or, they might price fuel competitively on a Friday afternoon to boost in-store sales of snack foods, tobacco, or alcohol.
The research survey revealed insights into who is conducting day-part pricing, how often they change prices, the price change amounts, and markets/days where this strategy is most effective. Additionally, one-on-one interviews provided deeper insight into how retailers establish fuel pricing strategies to support specific fuel goals – and how they measure success.