PriceAdvantage, a patented software solution that helps retailers optimize fuel prices and automatically execute price changes to their point of sale (POS), pumps, and price signs, released today How Centralizing Retail Fuel Pricing Can Impact Company Profits – a white paper that highlights the retail fuel marketing trend of shifting from decentralized fuel pricing to a centralized pricing model.
During today’s presentation at the SIGMA Spring Conference in Orlando, a panel of fuel retailers shared highlights from the white paper, including how a centralized pricing strategy can benefit retail fuel marketers, both from a financial perspective and staff allocation. The group also discussed how retailers have made this shift, common pitfalls, and most of all – how it impacted gross fuel profits.
- One retailer realized a 2.7% increase in total gallons sold and a 22.2% increase in gross profit dollars during their fiscal 3rd quarter of 2019.
- Several retailers experienced a drastic reduction in the amount of time it took to respond to competitor moves and market conditions.
- Nearly all retailers who have moved from decentralized to a centralized pricing model benefited from a reduction in keying errors related to manual, disparate processes.
Allison Wroe, PriceAdvantage Director of Marketing and author of the white paper, shared, “There recently has been a growing number of fuel retailers who have approached us to help with their centralization projects. As their partner, we observed the direct benefits they realized by centralizing their pricing strategy. Thankfully, some of these retailers were willing to speak publicly regarding their path to centralization.”
Wroe conducted a series of interviews with small, medium and enterprise fuel retailers as well as researched investor reports and published articles as the basis for this white paper. The findings highlight the retailers’ experiences and can be used help create a roadmap for other companies who are interested in centralizing their fuel pricing programs.
The white paper defines the difference between a decentralized and a centralized pricing model, and presents actual, real-world examples of problems created by decentralization, catalysts for centralizing fuel pricing, challenges associated with moving to a centralized model, benefits of centralization, and requirements for a successful centralization project.
To read the white paper in its entirety, download How Centralizing Retail Fuel Pricing Can Impact Company Profits.