Fuel pricing software
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Fuel Pricing Software is a business tool intended to allow retail fuel marketers to determine the most appropriate price at which to offer fuel based on their pricing strategies.[1]
Features
[edit]The software solutions were developed to help fuel retailers manage margins, sales and stock volumes in the face of fuel market price volatility, unfavorable supply arrangements, and price sensitivity of retail customers.[2][3] This can even include managing fuel order placement and monitoring overall site traffic.[4]
Factors such as pricing of competitors, analysis of current market costs and sales for each grade of fuel are all considerations that affect the outcome of fuel prices. In addition to this, sales by related convenience stores can effectively subsidize the fuel, lowering the price.[5] Some software is designed to integrate with point-of-sale systems, pumps, wetstock systems providers,[6] and electronic price signs to automate instant price changes. This saves store staff the inconvenience of changing gas price signs manually and allows retailers to more responsively post optimal pricing,[1][7] even monitoring the market in real time.[6]
Fuel pricing software is intended to replace manual or spreadsheet-based processes that could delay the update of fuel costs and jeopardize profit margins. Delayed updates of fuels costs can cause fuel buyers to pay more than necessary, with day-to-day price swings occurring at 3 cents nearly 50% of the time and 5 cents at just over 25%.[8]
Advances in artificial intelligence have further enhanced fuel pricing software. AI can predict how customer and competitors will react to price changes in different scenarios by analysing vast sums of historical and real-time data. AI can identify trends and provide dynamic, predictive, customer-centric pricing even in volatile markets.[9][10]
Mobile Applications
[edit]Fuel pricing mobile applications for consumers, such as GasBuddy and Fuel Finder, are intended to locate the best prices on fuel according to their current location.[11][12]
See also
[edit]References
[edit]- ^ a b "Skyline Products Selling Fuel Pricing Software as Stand-alone Product." Archived 29 October 2013 at the Wayback Machine Convenience Store News. 30 March 2010
- ^ Rigik, Erin. "Developing a Fuel Strategy Amid Soaring Costs." Convenience Store Decisions. 17 June 2011
- ^ "What Influences Gasoline Prices?" NACS: The Association for Convenience and Fuel Retailing.
- ^ "Pricing - The Drive To Optimise". Petrol World. 2013. Archived from the original on 29 October 2013. Retrieved 24 October 2013.
- ^ Magner, Lauren (2 September 2013). "Service stations and convenience stores battle the giants". IBISWorld. Retrieved 24 October 2013.
- ^ a b "Inform Information Systems wins deal to support EuroGarages' fuel pricing". Petrol Plaza. 7 June 2013. Retrieved 24 October 2013.
- ^ Pape, Pat. "Sign of the Times." Archived 30 September 2013 at the Wayback Machine May 2009
- ^ Fontevecchia, Agustino. "Higher Gas Prices Here to Stay, But Fuel Price Volatility Can Be Tamed." 12 November 2012
- ^ Schechner, Sam. "Why Do Gas Station Prices Constantly Change? Blame the Algorithm". WSJ. Retrieved 12 April 2023.
- ^ "A2i Systems - A2i Systems". 24 March 2022. Retrieved 12 April 2023.
- ^ Brady, Jeff. "Finding Cheaper Gas with Your Smartphone." NPR All Things Considered. 26 March 2012
- ^ "GasBuddy app can help save money on gasoline." Archived 15 June 2013 at the Wayback Machine Consumer Reports. 4 May 2012