Do you use your last delivery price or replacement cost to work out their current cost of fuel and their margins?
If you weight and blend the fuel in your tanks before making a pricing decision, you will have a more accurate margin and know whether you can follow that competitor down or need to move up to hit targets.
You can do this on Excel and get a good idea of the impact of your old fuel. Of course, if you want super accurate and super live, EdgePetrol can also do this for you!
It’s easy to say “sit 2p above the local low priced competitor today”, but are you really optimising your profits this way?
Getting carried away with volume OR margin can have negative impacts on your sites. It’s important to know your blended cost and use that to either win more customers or maintain margins to hit the gross profit you need to run your sites.
Furthermore, different days have different characteristics. How does your weekend customer respond to price variables? We have seen customers who reduced pricing at the weekends, and this gave them an overall volume lift of 20%.
Your site will be unique, but nobody knows it better than you. Is there money being left on the table?
Where is the oil price heading this week? How will this affect the daily and weekly Platts quote?
You may be able to hold on for a better price or save money by ordering now. The likes of Big Oil (owned and trusted by the PRA and its members) provide you with daily quotes and weekly averages.
Single sites can save up to $1,500 a month by ordering at the right time. Having more cost-effective fuel can also allow you to be more flexible (see above).
Insight, not data
Data is just numbers and you can get too bogged down in the detail if you don’t choose the most important ones and use them at the right time. Look for insights in your data, patterns and trends that are showing you how to make the next move.
And if you want to talk it through, make sure you get in touch! ☺
For more information visit edgepetrol.com or contact the team on firstname.lastname@example.org