How It Impacts Volumes, Margins and In-Store Sales
This past January, a group of fuel marketing industry experts conducted research into the emerging trend of scheduled day-part pricing strategies. More than 130 global fuel marketers provided valuable insight into how they are—or are not—executing this strategic pricing strategy.
What is day-part pricing? It is the execution of scheduled fuel price changes during set windows of time throughout the day, sometimes referred to as dynamic pricing. For example, retailers are learning how to maximize margins or drive volumes based on specific day parts. Some retailers might focus on capture margins during the morning while focusing on holding volumes in the afternoon. Or, they might price fuel competitively on a Friday afternoon to boost in-store sales of snack foods, tobacco or alcohol.
The research survey revealed insights into who is conducting day-part pricing, how often they change prices, the price change amounts and markets/days where this strategy is most effective. Additionally, one-on-one interviews provided deeper insight into how retailers establish fuel pricing strategies to support specific fuel goals—and how they measure success. Fuel marketers also shared some common pitfalls—and the tools required to support such a dynamic strategy.
The results of the research project will be shared on February 15 during a webinar. Hosted by PriceAdvantage, Petroleum Pricing Professionals and Schneider Electric, the educational webinar will help fuel retailers evaluate if this strategy is right for them and how to create a business case.