By Kalibrate Team
The ability to raise prices without losing business or sacrificing customer satisfaction is the foundation of a successful business. Retaining pricing power means striking a delicate balance and understanding how fuel purchasing decisions are made from a buyer's perspective.
To maintain pricing power, suppliers need to account for their customer's needs and value expectations on many different levels. How do buyers and suppliers determine value and how does that value translate into a price tag? How is the value of different products relatively determined? And what other factors contribute to fuel purchasing decisions besides price alone?
Out of the seven elements that influence your business's profitability (including market, location, facilities, operations, merchandising and brand), price is only one factor. Making savvier fuel pricing decisions means understanding the ways that all seven elements relate and translate into your ability to achieve economic value.
Check out the CSP Daily News article by Kalibrate's Ian Thompson, entitled, "Do You Have Fuel Pricing Power?" to learn more about what really determines a retailer's ability to "own" pricing decisions.