A robust cost system if you need it
Understanding all cost components is the most critical contributor to improving profitability. Some companies have their own cost systems, while others perhaps would like to move away from spreadsheets, or have a much more accurate depiction of true costs. For those with their own cost systems, Fuelspricing.com has a simple interface which will allow you to upload costs automatically or via spreadsheets. For organizations looking for a very sophisticated cost system, FuelsPricing.com has a robust built in cost management and calculation system. The cost system will allow you to model sophisticated and complex cost formulas to match your valuations. Easily model the most complicated cost structures, whether dealing with owned inventory, rack or formulas, special temporary discounts or TVA’s, product blends, and more.
Full access to your data with analytics
Access to data provides the insights you need into your performance, competitive position, and segment profitability. There’s nothing wrong with spreadsheets to do analysis – they are easy to use, distribute, and study a lot of data. There are some trade-offs though – they can make it harder for a new user to understand someone else’s work, and updating or refreshing an analysis may require a lot of rework. With our proprietary excel add-in tool in FuelsPricing.com, get the best of both worlds. Feel write at home and avoid learning a complicated new piece of analytics software – but at the same time gain access to an extensive analytics library to enable a lot more capability. You can even link to your own proprietary data sources to have a complete picture of your business, all in one place. (Add – geomapping, drill downs, custom measures, aggregation, scheduling reports etc).
There is plenty of debate as to the value of mathematical price optimization. Let's consider some of the arguments for and against optimization:
Price Optimization Proponents
• Some science is better then no science at all
• Having an optimization methodology provides assurance to management that there is rationale to pricing
• Computational statistics can uncover trends or patterns in the data
• Other businesses have reported success in optimization (airlines, sports events, etc.)
Price Optimization Skeptics
• There are far too many variables that effect price, are not public, and cannot be modeled
• The volatility and variability of data renders data statistically irrelevant
• Business constraints and philosophy tend to drive pricing decisions more than a truly optimized price
• In practice, analysts reject optimization output and don’t use it
There isn’t a right or wrong answer. Rather, we recommend a fresh, pragmatic and layered approach to thinking about and implementing optimization. This approach includes building a strong foundation for accessing and mining relevant business intelligence. Most importantly, assuring the analysts have the best tools to visualize and understand pricing and performance data. This allows bringing the analysts knowledge and perspective to the table, and blending this knowledge with the underlying data. FuelsPricing.com includes sophisticated tools to model deals, analyze true pocket margins, and study customer profitability. With FuelsPricing.com, organizations can have the best of both worlds, regardless of where you may fall on the debate.