PRICING SOLUTIONS FOR RETAIL
PETROLEUM FUEL MARKETERS
KC FUEL PRICING SOLUTIONS PROVIDES THE PROCESSES, TOOLS AND SKILLS:
TO SUCCESSFULLY MANAGE THE CHALLENGES OF A CHANGING FUELS MARKET
AND SUPPORT YOUR COMPANY OBJECTIVES
Changing Fuels Industry
- The Petroleum Industry in Canada is going through another evolution with major integrated companies moving away from rack forward marketing and focusing on downstream rack back refining, upstream oil extraction and related activities.
- Retail sites and wholesale customers are being sold to existing and new marketers. This can lead to many challenges and growing pains as many marketers do not have the right processes or experience to manage the larger scope and complexities associated with the new business model such as selling multiple brands within the same organization and competitive environment.
- One such area of complexity is pricing of petroleum fuel products. Large major oil companies took years and invested millions of dollars to develop their processes and systems.
Pricing a Powerful Lever
- Pricing is a very potent lever especially given the power of high volume. For example, it takes a lot of effort to reduce $1 million of expenses but one good price move can make that happen quickly.
- Effective pricing can have a significant positive impact on key success measures such as share of market, volume, gross margin($ or cpl), brand reputation, regulatory compliance, cpl expenses, etc.
