Fuel retailers move away from in-house systems and increase use of price optimization
Florham Park, NJ - March 31, 2014
Kalibrate Technologies (formerly KSS Fuels) today unveiled the results of its second annual global fuels pricing survey comprising feedback from executives at retail petroleum companies representing more than 19,000 sites and 28 billion gallons annually. The study reveals an increase in the number of companies turning to third-party software providers for daily fuels pricing solutions and a growing trend towards use of price optimization to generate retail pump prices.
The number of respondents reporting the use of third-party fuels pricing software increased from 76% to 83% between 2012 and 2013. Survey findings show “in-house” systems as the second ranked pricing software in use, with 17% of respondents stating they use an in-house developed pricing system compared to 24% in 2012.
The top four reasons for investing in fuels pricing software are:
- Opportunity to improve profit
- Ability to automate processes in order to get prices out faster
- Ability to integrate with other systems to streamline the pricing process
- Analytics that address business needs
In regards to price optimization, 47% of respondents indicate that price optimization is a must have and they always use this capability; this is in stark contrast to only 26% utilizing price optimization in 2012. The primary reason for employing price optimization remained the same with 66% of respondents using it to increase margin while maintaining volume/market share.
“Retail fuel pricing is a mission critical process that requires 24/7 automation and business intelligence to respond to daily market changes and cost volatility so that you can quickly and effectively generate optimal prices and maximize performance,” said Bob Stein, president and chief executive officer of Kalibrate Technologies. “When you add in the importance of being in compliance with various regulatory requirements surrounding fuels pricing, more and more retailers see the need to replace their internal legacy systems with solutions such as Kalibrate’s fully automated fuel price optimization solution.”
For a full discussion of survey findings, please contact your local Kalibrate Technologies representative.