20+ years of real world experience
Through a marriage of experience over 20 years of working with pricing teams in the Fuels industry and leveraging modern technology capability - FuelsPricing.com delivers a configurable application that adapts to the market conditions that is appropriate for your chain in the markets that you operate in.
The downstream fuels marketplace is changing as globally markets are maturing and becoming increasingly volatile coupled with increasing regulatory compliance. Alongside these changing market dynamics numerous Oil Majors are divesting assets either entire markets or moving to a branded wholesaler operation so ownership structure are changing. Historically, Oil Majors provided some degree of price support in the marketplace for Dealers which is no longer the case and today the site operator needs to understand the true operating margin, how the site compares to competition both in terms of its qualitative offer (Location, Operation, Facility etc) and its price position.
In many markets there is volatility in supply prices coupled with frequent price changes (in some markets as many as 4 or 5 a day) and significant promotional activity.
The end result is to compete effectively in the marketplace that Fuel Retailers have to be able to monitor competitor prices frequently and have effective pricing strategies in place which maximises the competitive and strategic offer that the Fuel Retailer's chain allows.
All of this means that the burden on the pricing function is huge as the volume of information, the pace of change and external demands are all increasing.
Increasing Pricing Efficiency is absolutely vital in today's marketplace and to achieve a "true battle hardened result" a proven pricing system is needed.
The system needs Automation at every point, seamless multii-stream data collection, fast decision making capability with all relevant data points available to review, rapid communication of price decisions to the field (in seconds, minutes not hours/days). All backed up by security, audit and controls, plus integration into the myriad of connecting systems both at the site and at head office.
In 2013, a recent survey suggested that the majority of the 500,000 sites around the globe are priced via a spreadsheet with only 25% of sites in the globe priced with a formal pricing system. Whilst these numbers cannot be validated our experience over 20 years of replacing hundreds if not thousands of spreadsheets indicates this is believable.
In pricing efficiency terms replacing spreadsheets systems improved pricing efficiency by an order of magnitude reducing the number of analysts required to operate but more importantly allowed allowed the pricing process to improve. Information to review strategy, monitor performance, assess price volume optimisation and analyse the market led to improved margins.
In 2014, Fuel retailers around the world are looking at what to do in this area to improve efficiency, compete better and generate an effective return in a changing marketplace. There is a realisation that spreadsheets and/or internal systems need to be upgraded.
Global and varied experience
FuelsPricing.com has evolved working in every type of market including:
- Australia (where price observations happen every 15 mins)
- Argentina (where originally in 2000 the post office providing data once a week, through to its current state)
- Brazil (Perhaps the most complex market to model for Retail and B2B Wholesale)
- As well as Europe, Asia and North America
- With every type of method of site operation - self-serve, full-serve, spilt-serve, unattended (including price changes direct to the POS and pole sign)
- Dealing with tax, margin calculations ranging from the simple to highly complex (Brazil wins on that one)
Of course there are and have been many different type of back office integration calculation for Tank Wagon Price Calculations, Stock Value Loss Compensation to Automated Price Response Credit/Loss payments (change the price within 15 minutes of price change and if the site didn't the system an automatic payment for the volume at the incorrect price was raised - in Scandinavia).
The bottom line is we have all of the experience to deal with a changing marketplace and have successfully worked with challenging customers in this evolving area over many years. Our system is designed to be configurable and adaptable to your needs.
Making the right choice
There is choice for Fuels Retailers to replace these systems. In the market place there are 3 real main options - FuelsPricing.com, Kalibrate (KSS) and Price Advantage which offer packaged solutions focussed on this space.
Our message to customers is delve deep into the product capability and assess the experience of the people delivering your solution, truly understand the automation, integration and adaptability capabilities which will deliver pricing efficiency. Absolutely demand world class analytics and understand/believe the data science that sets your pricing in a way that you can operate it as without this understanding you are pricing blind.
Make that assessment and like these recent customers who moved away from spreadsheets, made competitive evaluations and moved from alternative suppliers there is one right choice and that is FuelsPricing.com retail.