A Closer Look At Electric Vehicle Penetration and Impact

A Closer Look At Electric Vehicle Penetration and Impact

By Mark Hawtin, Managing Director, Pricing

We've said it before and we'll say it again: Alternative fuels are shaking up the global fuel industry. In particular, the popularity of electric vehicles is growing exponentially, and it's not expected to slow any time soon. The latest Electric Vehicle Outlook Report predicts that sales of electric vehicles will shoot from a record 1.1 million worldwide in 2017, to a whopping 11 million in 2025, and then 30 million in 2030.

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The Power of Fuel Price Data: Handling

The Power of Fuel Price Data: Handling "Missingness"

By Anila Siraj, EVP of Research and Applied Data Sciences

We've said it time and time again, in order to thrive in today's competitive fuel retail market, you have to take a data-driven approach. If you're not using fuel price data to make decisions about your network, then you might as well be pushing buttons wearing a blindfold. By conducting a comprehensive competitive analysis, fuel retailers will understand:

  • Who their true competitors are
  • Key differentiators between their sites and their competitors' sites
  • The volume potential of each site
  • Daily, weekly and monthly demand cycles at each site
  • Market volatility
  • ... and more!

One of the most important drivers for sensitivity is relative price. It's true that actual price has some effect on sensitivity; when gas is cheaper, people will inevitably drive more. But at a micro-level, consumers are going to make decisions based on the relative prices of different sites. Data collection of competitor prices becomes critical in any competitive market where prices are rapidly changing and the relative position vis-a-vis your competitors is a strong driving force behind your share of demand.

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How to Tell If You're Contributing to Fuel Price Volatility

How to Tell If You're Contributing to Fuel Price Volatility

By Mark Hawtin, Managing Director, Pricing

If you're lucky, the gas prices in your market change only once or twice a week. In some markets, however, prices can change up to twelve times a day, presenting a major challenge to fuel retailers trying to navigate the market effectively. It's a fact of life that the volatility of fuel retail markets vary — and experience shows that markets evolve to become more volatile — but what triggers it? And how do you know if you're contributing to fuel price volatility in your market?

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Using Quadrant Analysis to Gauge New Gas Station Investment Costs

Using Quadrant Analysis to Gauge New Gas Station Investment Costs

By Janet Tooke, Senior Client Services Manager

New gas station investment costs are an integral part of any business decision — not only from a capital investment perspective, but also in terms of the time and effort it takes to find the right piece of land, negotiate contracts, design and engineer the site, and jump through hoops with local authorities.

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Convenience Store Trends Network Planners Can't Ignore

Convenience Store Trends Network Planners Can't Ignore

By Ian Thompson, Managing Director, Planning

If you're planning to expand your retail network of sites, current convenience store industry trends can significantly impact your decisions. From consumer preferences and brand affinity to fuel price sensitivity and geographic spread of alternative fuels, certain trends can tip the hat toward or away from the success of your sites, so it's important to stay informed.

Being as prepared as possible for big changes in the industry is essential for effective retail network planning — so today, let's discuss some of the biggest trends in convenience retailing over the last two years, and how these changes can affect your retail network growth planning.

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Understanding Disparate Demand Cycles Within Fuel Retailing

Understanding Disparate Demand Cycles Within Fuel Retailing

By Anila Siraj, EVP of Research and Applied Data Sciences

Within the fuel and convenience retailing market, demand and consumer behavior can often times be erratic and sensitive to factors that are out of your control. Across different sites, different daily, weekly and seasonal cycles of demand can develop. Understanding these cycles is critical to maintaining an appropriate strategy and maximizing your retail network's profitability. 

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4 Approaches to Growing Your Commercial Fuel Network

4 Approaches to Growing Your Commercial Fuel Network

By Ian Thompson, Managing Director, Planning and Mark Hawtin, Managing Director, Pricing

Across any industry, the best and most successful retailers today have data science at their core. According to a recent study by Forrester Consulting, of the companies who consistently exceed profit expectations and blast past their goals — the leaders in their industries — 88 percent of them use data science to drive retail success.

The fuel and convenience retail market is no exception. In order to grow your commercial fueling network, you can no longer rely on your gut feelings. You need to use data to inform your decisions. But sometimes, translating this data into a comprehensive growth strategy can be tough. That's why we pulled together this list of four approaches to growing your fuel network.

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3 Ways to Learn About Retail Fuel Pricing Sensitivity

3 Ways to Learn About Retail Fuel Pricing Sensitivity

By Kalibrate Team

Of the many elements that can affect the success of a fuel retailer's business, retail fuel pricing is one of the most important. Price sensitivities can vary from site to site and region to region, but year over year, price has remained the number one decision factor for consumers. That two-cent difference between your price and a competitor's price could ultimately be the make-or-break element driving your retail fuel volume.

In order to make strategic decisions about your fuel prices, there are a few key categories of data you need to gather to understand fuel pricing sensitivity in your market.

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10 Competitive Advantages of Synergy Between Pricing and Planning

10 Competitive Advantages of Synergy Between Pricing and Planning

By Conor Bowler, Head of Product-Pricing Division and Richard Wilcox, VP Strategic Operations

Many fuel and convenience retailers still operate under the belief that the only way to battle pricing competition is to lower their prices. But fuel volumes and margins are decreasing while advancements in the fuel industry continue to increase, and these new developments will require new approaches to retail strategy — and a commitment to change.

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What is Optimization, Anyway?

What is Optimization, Anyway?

By Anila Siraj, EVP of Research and Applied Data Sciences

To be successful at a task, you must take actions that make the best or most effective use of the resources or situation available to you. To maximize the return on those actions you need to understand the impact that each action will have and choose the one’s that provide the most benefit. This ‘continuous improvement’ process is referred to as "optimization." But optimization is not just a process. It's also a mathematical concept, and one with roots that are centuries old. It exists within mechanics, finance, engineering, geophysics, media, marketing…the list goes on.

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